Billionaire entrepreneur Elon Musk has spoken positively about Bitcoin (BTC) for the first time in years, praising its strong link to real energy. His comments come at a time when the crypto market is struggling with new fears of a major price drop after heavy liquidation. Musk’s remarks immediately affected traders’ confidence, causing a small rebound in the coin price.
Elon Musk Highlights Bitcoin’s Real Energy Basis
In a recent statement, Elon Musk said that Bitcoin is built on real energy, which makes it different from government-issued money that can be created without limits. He made the statement in response to a discussion about the rising prices of gold, silver, and the flagship crypto.
The topic highlighted investors’ growing shift toward assets that cannot be easily printed or devalued. This trend is driven by governments’ continued heavy spending on artificial intelligence (AI) and other advanced technologies.
Musk explained that the world is now in a global race to develop artificial intelligence. He said that governments, especially those of the United States and China, are likely to finance this race by creating more money.
Musk has often warned that this practice is dangerous, pointing to the United States’ growing national debt of over $37 trillion. He has also criticized the government for relying too much on money printing instead of real productivity.
A Change in Elon Musk’s Bitcoin Stance
This new statement represents a clear change from Musk’s earlier position. In previous years, the billionaire criticized Bitcoin for using too much energy and even caused its price to fall when Tesla stopped accepting it as payment.
Since then, Musk has mostly supported Dogecoin, a dog-themed memecoin. He has also talked about adding Dogecoin to the X Money system, a payment feature planned for his social media platform X formerly Twitter.
Now, with his renewed support for Bitcoin, Musk appears to be embracing the top coin once again. He also announced that his newly launched political party will accept Bitcoin donations, signaling his belief in its long-term value.
Bitcoin Price and Derivative Market Shows Modest Recovery
Following Musk’s comments, the Bitcoin price showed a small rebound. It is currently trading at $112,011, after reaching a low of $111,569 and a high of $116,020 in the past 24 hours. Even though the price improved slightly, trading activity has fallen.
The 24-hour trading volume is down by 18%, showing that many traders are waiting for more direction from the market. Some investors are also staying cautious ahead of U.S. Federal Reserve Chair Jerome Powell’s speech later today.
The derivatives market has shown limited but positive movement. According to data from CoinGlass, the total Bitcoin futures open interest increased by 0.1% in the past hour to $72.98 billion. However, it is still down $1.3 in the last four hours and nearly $3.5 in the past 24 hours.