- Elon Musk warned that the government account of the government would take Americans bankrupt and add $ 2.5 trillion to tax debts.
- Arthur Hayes, Brian Armstrong and Robert Kiyosaki expected a BTC tree in the midst of the American tax crisis.
The American tax deficit debate appeared again after Elon Musk had closed the government’s expenditure account that would add $ 2.5 trillion to the debt burden over the next ten years.
Musk decided that the Americans bill would make bankrupt, where calls for calls to Bitcoin [BTC] As an alternative hedge. Musk went on and added”
“It will greatly increase the huge budget deficit to $ 2.5 trillion and tax the citizens of America with crushing untenable debts.”
The US government debt has risen to $ 36.9 trillion and analysts have warned about a possible devaluation of the US dollar and inflation.
In fact, founder of Coinbase, Brian Armstrong, warned That the tax debt burden BTC can tip to become the reserve currency of the world.
“If voters does not hold the congress responsible to reduce the deficit and pay the debt, Bitcoin will take over as a reserve currency.”
All roads lead to Bitcoin
Early in the year, BlackRock’s Larry Fink made a similar explanation,
“If the US does not get its debt under control, if deficits continue to have balloons, America risks to lose that position (world reserve -currency) to digital assets such as Bitcoin.”
Simply put, BTC, an asset with fixed stock with only 21 million coins and a deflational issue rate, could be the largest beneficiary if American tax misery deteriorates.
For his part, Arthur Hayes, founder of Bitmex Exchange, noted That the government will always spend more and encourages users to buy BTC.
“Just buy $ BTC, because we have a growing complex adaptive organism, the government, never stops eating.”
Worth to point out that when the expenditure account cleaned up the Senate in May, gold and BTC pumped. This underlined a risk-off sentiment and further confirmed that the tax-out BTC and gold could stimulate.
The golden price has risen by 2% this week to $ 3.3k, but BTC still has to follow and was appreciated at $ 105k. From a YTD perspective (year-to-date) perspective, Gold has even registered more ETF inflow than BTC.
In the first half of 2025 it made $ 17.8 billion in the first half of 2025, while BTC saw $ 7.2 billion. In short, gold surpassed BTC with more than 2.4x. But the trend could change, through Q2 traction.
In particular, the inflow of Golden decreased from $ 30 billion to $ 17 billion, which means that $ 13 billion was absorbed from the products.
In the meantime, the influx of BTC ETFs rose from zero to $ 7 billion. If the trend applies, BTC can perform better than gold in the middle until the long term.
On the price front, BTC had risen by 12% on a YTD basis, while Gold yielded 28%. But the assets can perform better in the summer if the American tax crisis gets deeper, noted Robert Kiyosaki.
“During this summer, while the stock, bond and real estate markets crash … Millions of Gold, Silver and Bitcoin will rush.”
Despite the above bullish scenario, BTC holders continued to discharge their stock in the long term (LTH), according to For analyst Willy Woo.
“The big whales> 10k BTC sell since 2017. They are stupid! Most of those coins were bought between $ 0- $ 700 and held 8-16 years.”
Source: Glassnode