Bitcoin and cryptocurrencies are on the rise. This surge comes from worries about government spending and a recent statement from former President Donald Trump about crypto.
The price of Bitcoin is now close to $70,000, just shy of its all-time high of $73,000. This peak was reached earlier this year, largely due to BlackRock's moves in the crypto market.
Recently, Elon Musk, the CEO of Tesla, called cryptocurrency "interesting and probably valuable." He made this remark during a Trump campaign rally in Pittsburgh. When asked if XRP could fit into the financial system, Musk highlighted that crypto helps protect against centralized control. He stated, "Crypto by its very nature helps with individual freedom," but he did not endorse XRP or any specific cryptocurrency.
Musk has been a key player in the Bitcoin boom during the pandemic, often sharing his thoughts on social media. However, lately, he has focused more on criticizing U.S. spending, warning that the country is nearing "bankruptcy." He has also agreed to lead a proposed Department of Government Efficiency, humorously named "Doge," after the popular Dogecoin meme.
Speaking of Dogecoin, it has jumped 25% in price this past week thanks to Musk's comments about the Doge department. This led billionaire Mark Cuban to joke that Musk might as well put "Dogecoin in the U.S. Treasury" if Trump wins the presidency again.
Last week, Musk stirred the Bitcoin market when Tesla moved its remaining Bitcoin. Tesla is believed to own about 11,500 Bitcoin, valued at nearly $800 million. The company transferred its Bitcoin to a new address for the first time in two years, according to blockchain analysts at Arkham Research.
While Tesla is known to hold around 10,000 Bitcoin, Arkham has identified 68 addresses that they think are controlled by Tesla, bringing the total to 11,500.
There’s speculation about why the Bitcoin was moved. It could be for an over-the-counter sale or to switch to a different custodial wallet for storage. Back in early 2022, Musk sold a large portion of the $1.5 billion in Bitcoin that Tesla had added to its balance sheet in early 2021 to ensure a quarterly profit.
Tesla is set to release its third-quarter results for 2024 after the market closes on October 23.