Surprise Elon Musk Endorsement Suddenly Sends Bitcoin And Crypto Prices Higher

Bitcoin Bitcoin and cryptocurrencies have surged higher, boosted by fears swirling over out-of-control government spending and former U.S. president Donald Trump's crypto bombshell.

The bitcoin price has come within touching distance of $70,000 per bitcoin, putting it just marginally behind its all-time high of $73,000 it reached earlier this year on the back of BlackRock's bitcoin and crypto Wall Street revolution.

Now, as one legendary billionaire investor predicts a market “melt up,” Tesla chief executive Elon Musk has called crypto “interesting and probably valuable.”

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“I think cryptocurrency is an interesting and probably valuable bulwark against centralized control,” Musk said, speaking a campaign rally for former U.S. president Donald Trump in Pittsburgh when asked by an attendee whether the cryptocurrency XRP XRP could be incorporated into the financial system.

“Crypto by its very nature helps with individual freedom,” Musk said, adding he wasn't endorsing XRP or any other specific cryptocurrency.

Musk was a key driver of the Covid-era bitcoin and crypto market boom, posting regularly about bitcoin and crypto but has more recently directed his attention toward criticism of the U.S. spending, repeatedly warning the U.S. is hurtling toward the brink of “bankruptcy.”

The dogecoin cryptocurrency, a tongue-in-cheek rival to bitcoin that's been semi-adopted by Musk over recent years, has seen its price soar 25% this last week on the back of Musk's Doge department comments—which caused billionaire Mark Cuban to joke that Musk could put “dogecoin in the U.S. Treasury,” if Donald Trump retakes the White House next month.

Musk last week sparked bitcoin price panic last week when the electric car company suddenly moved its remaining bitcoin.

Musk's Tesla, which is believed to own some 11,500 bitcoin worth almost $800 million, moved its bitcoin to a new address—the first time its moved its bitcoin for two years, according to blockchain sleuths at Arkham Research.

Tesla is known to hold almost 10,000 bitcoin, however, Arkham analysts have identified 68 addresses they believe to be controlled by Tesla, bringing its total bitcoin to 11,500.

While the bitcoin was likely being moved in either an over-the-counter sale or in preparation for one, some speculated it may be being moved to a different custodial wallet for storage.

In early 2022, Musk sold off the majority of the bitcoin he added to Tesla's balance sheet in early 2021 to secure a quarterly profit for the company. Tesla will post its 2024 third-quarter results after the market closes next Wednesday, October 23.