Bitcoin surged above $81,000 for the first time as Tesla billionaire Elon Musk called on new US president-elect Donald Trump to use the cryptocurrency to address America’s “unsustainable” debt growth.
The Tesla titan, who endorsed Mr Trump during his campaign trail, has been warning of a looming “financial emergency” in the US.
“Excess government spending is driving America into bankruptcy….This debt growth is unsustainable,” the multibillionaire posted on X.
Mr Trump too brought up the idea of using Bitcoin to “pay off the $35 trillion” national debt in August this year.
“Hand them a little crypto check, right? We’ll hand them a little bitcoin and wipe out our $35 trillion,” he said.
Following his election victory and as the 45th US President inches closer to overall control of the US Congress, Bitcoin rallied past $81,000 on Sunday as other cryptocurrencies also continued to surge in price.
Mr Trump promised favourable regulation and the formation of a US bitcoin reserve if he wins, vowing to make the US “the crypto capital of the planet”.
He vowed that one of his first moves as president would be to sack the current Securities and Exchange Commission (SEC) chairperson Gary Gensler who led the government’s crackdown on the crypto industry – hinting at a friendlier regime for digital currencies.
Bitcoin is currently valued at more than $81,200, rising by nearly 5 per cent in the last 24 hours, up by over 65 per cent from this year’s low of $38,505 it hit on 23 January.
Overall, the world’s biggest cryptocurrency has surged in value by more than 80 per cent this year.
Other cryptocurrencies, including dogecoin – promoted frequently by Mr Musk – are gaining value.
“Many investors anticipate that a Trump victory will clear the path for mainstream adoption and regulation that is both favourable and necessary for bitcoin’s continued growth,” Nigel Green, chief executive of financial advisory firm deVere Group, said.
“This pro-crypto narrative could pave the way for regulatory clarity, bolstering institutional investments that could send bitcoin to unprecedented heights,” Mr Green, who forecasted a Bitcoin price rally beyond $80,000, said.