Will Musk Double Down on Bitcoin as U.S. Debt Soars?

Crypto attorney John Deaton has sparked speculation that Elon Musk and Tesla could expand their Bitcoin holdings, citing rising fiscal risks in the United States as a potential motivator.

The commentary comes in the wake of a controversial Congressional spending bill that drew strong backlash from Musk, who called it a “disgusting abomination” on social media. Deaton responded by saying he “wouldn’t be surprised” if Musk and Tesla saw this as a trigger to increase their Bitcoin exposure.

The bill, criticized for its ballooning expenditures and debt implications, has rekindled concerns about monetary expansion. Deaton described the legislation as an “advertisement for buying Bitcoin,” highlighting the appeal of scarce digital assets in contrast to fiat currency debasement.

Tesla already holds more than 11,000 BTC, but Deaton hinted the automaker could soon add to its position, especially given Musk’s renewed interest in Bitcoin-related technologies. The tech billionaire recently promoted XChat as offering “Bitcoin-grade security,” signaling a continuing affinity with blockchain principles.

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Joining the conversation, BitMEX co-founder Arthur Hayes echoed Deaton’s stance, warning that unchecked government spending is a long-term driver for Bitcoin accumulation.

At the same time, Deaton voiced some caution regarding the broader Bitcoin investment trend. Responding to Strategy’s new offering of a 10% yield to fund further BTC purchases, he warned that the euphoria surrounding Bitcoin could lead some investors into risky territory. While acknowledging the long-term value of Bitcoin, he raised concerns about potential overreach by maximalists.

Despite his warnings, Deaton disclosed that 80% of his own net worth remains in Bitcoin—underscoring both his conviction and the high stakes for those deeply invested in the asset.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.