Billionaire entrepreneur Elon Musk confirms that his newly launched “America Party” will support Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization.
The announcement came in response to a question from X user Renato Lima, who asked whether Musk’s centrist political initiative would back Bitcoin. Musk replied bluntly: “Fiat is hopeless, so yes.”
Elon Musk’s stance on Bitcoin and fiat currencies has fluctuated over the years. In 2020, Musk famously quipped that Bitcoin was “almost as BS as fiat money,” only to later show public support for digital currencies in 2021. More recently, Musk introduced the XChat messaging app, which he claims uses Bitcoin style encryption technology.
The billionaire’s electric vehicle company, Tesla Inc. (NASDAQ: TSLA), reportedly holds around $1.2 billion in Bitcoin, according to sources.
Musk’s comment follows the official unveiling of the “America Party,” a political platform he says is designed to challenge the entrenched two-party system in the U.S.
The tech mogul launched a poll on X last month to gauge public interest in a new political alternative. More than 1.2 million users participated, with 65.4% voting in favor of forming a new party.
Tech entrepreneur Andrew Yang and businessman Mark Cuban are among the potential high profile figures rumored to join Musk’s new political movement.
Meanwhile, President Trump posted on Truth Social that a third political party has never succeeded in the United States. He said that Elon Musk has gone completely “off the rails”.
“I am saddened to watch Elon Musk go completely “off the rails,” essentially becoming a TRAIN WRECK over the past five weeks.”
Donald Trump
What is the impact of this on Tesla and BTC?
Bitcoin is currently trading at $109,585.77, marking a 1.38% increase over the past 24 hours.
Meanwhile, shares of Tesla closed down 0.10% at $315.35 during Thursday’s regular session. The stock has dropped 21.91% year-to-date, despite maintaining a strong growth score, though it lags in momentum metrics.
Musk’s endorsement of Bitcoin is of great significance to cryptocurrency and U.S. politics.
Many predict that the move could accelerate the mainstreaming of digital assets in the near future, given Musk’s broad influence in tech, finance, and now governance.
