Elon Musk has announced that his newly formed America Party will accept Bitcoin as a form of payment, describing the US dollar as “hopeless”. The tech billionaire’s statement came in response to a query on the X platform, where he criticized fiat currency amid concerns over rising US government debt.
Musk launched the America Party following the passage of a $5 trillion government spending and debt ceiling increase, signed by US President Donald Trump. The move, dubbed the “Big Beautiful Bill,” prompted Musk to accuse the government of reckless spending, predicting higher inflation and increased debt interest payments for Americans.
In a poll conducted on X, 65.4% of 1.2 million respondents supported Musk’s call for a new political party. He wrote, “When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom.”
Musk, previously a key figure in the Trump administration’s Department of Government Efficiency (DOGE), aimed to reduce excessive spending. However, he left the role last month, citing disagreements with Trump on several policy issues.
The announcement coincides with a 1.42% rise in Bitcoin’s price, now trading at $109,600, with a 28% surge in daily trading volume to $38 billion. Reports also suggest Musk has been accumulating Bitcoin, with his company Tesla holding 11,509 BTC, ranking among the top 10 publicly listed Bitcoin holders.
President Trump, responding on Truth Social, criticized Musk’s political venture, stating, “He wants to start a Third Political Party, despite the fact that they have never succeeded in the United States – The System seems not designed for them.” US Treasury Secretary Scott Bessant echoed this sentiment, urging Musk to focus on business rather than politics.
As Bitcoin’s price hovers above $109,500, with futures open interest up 4% to $75 billion, analysts suggest a breakout above $110,000 could push the cryptocurrency to new all-time highs.
