- Elon Musk warns that government spending bills could bankrupt Americans and add $2.5 trillion to public debt.
- Arthur Hayes, Brian Armstrong, and Robert Kiyosaki predict Bitcoin (BTC) will explode amid the US financial crisis.
Debate on US Financial Deficit: Bitcoin in the Spotlight
The discussion about the US public budget deficit returns to the spotlight as Elon Musk sharply criticizes the government spending bill, expected to add $2.5 trillion to the public debt burden over the next 10 years.
Musk emphasizes that this bill could cause Americans to go bankrupt, while also sparking calls to choose Bitcoin (BTC) as an alternative safe haven. On his personal page, Musk affirms:
"This bill will cause the already massive budget deficit to surge by $2.5 trillion and add an unbearable debt burden to the American people."
Currently, the US public debt has reached $36.9 trillion. Many analysts warn of a high possibility of USD devaluation and escalating inflation.
Notably, Coinbase CEO – Brian Armstrong also warns that if the debt burden continues to rise, BTC could completely become the global reserve currency.
"If voters do not demand Congress control the deficit and start repaying debt, then Bitcoin will replace the reserve currency."
Wave of Asset Shift to BTC
Previously, BlackRock CEO – Larry Fink shared a similar perspective:
"If the US cannot control public debt, if the deficit continues to expand, the US risks losing its reserve currency status to digital assets like Bitcoin."
BTC, with its fixed supply of 21 million coins and decreasing release rate, is predicted to benefit greatly if the US financial crisis escalates.
Arthur Hayes, BitMEX founder, advises users not to hesitate and buy BTC immediately:
"Buy BTC, because a complex and self-adapting system like the government will never stop spending."
Notably, when the spending bill was just passed by the US Senate, gold and BTC prices both surged. This shows market risk aversion and further reinforces the view that BTC and gold will benefit from this financial consequence.
Currently, gold prices have increased 2% this week to $3.3K, but BTC has not yet made a clear breakthrough, trading around $105K. From the beginning of the year, ETF capital inflows into gold have been significantly higher than BTC.
In the first half of 2025, gold attracted a net $17.8 billion, while BTC only attracted $7.2 billion. Thus, gold has attracted capital more than 2.4 times that of BTC. However, this trend may change in the second quarter when BTC inflows increase again.
Source: Bold report
Specifically, gold inflows have decreased from $30 billion to $17 billion, with $13 billion withdrawn.
Meanwhile, BTC ETFs have strongly increased from 0 to $7 billion. If this trend continues, BTC could completely overtake gold in medium-to-long-term capital attraction.
BTC and Gold Performance: Who Will Lead?
In terms of price, BTC has only increased by 12% since the beginning of the year, while gold has risen strongly by 28%. However, both assets are expected to surge strongly in the summer when the Fiscal Crisis in the US escalates. Famous investor Robert Kiyosaki has predicted:
"This summer, when the stock market, bonds, and real estate are free-falling... billions of dollars will flow into gold, silver, and Bitcoin."
BTC Whales' Profit-Taking Moves
Despite BTC's bright growth prospects, long-term investors (LTH) continue to dump, according to analysis by expert Willy Woo:
"Whales owning over 10K BTC have been selling continuously since 2017. Ridiculous! Most of these coins were bought between $0 and $700 and held for 8 to 16 years."
Source: glassnode
