Elon Musk has returned to Bitcoin advocacy after years of environmental criticism, calling it “vitality cash” that can not be faked, in contrast to fiat forex. The Tesla CEO tweeted on Tuesday that “you’ll be able to challenge pretend fiat forex, and each authorities in historical past has completed so, however it’s inconceivable to pretend vitality.”
The endorsement got here in response to a submit about AI turning into the brand new “world arms race,” with governments debasing currencies to fund large computational infrastructure.
Musk framed Bitcoin’s energy-based proof-of-work mining as inherently worthwhile, evaluating it with the limitless printing of fiat cash.
True.
That’s the reason Bitcoin relies on vitality: you’ll be able to challenge pretend fiat forex, and each authorities in historical past has completed so, however it’s inconceivable to pretend vitality.— Elon Musk (@elonmusk) October 14, 2025
Musk’s Bitcoin Stance Shifts After Three Years of Dogecoin Focus
Bitcoin rebounded to roughly $112,000 following Musk’s feedback, recovering from the $102,000 low throughout the October 10 liquidation occasion that worn out over $19 billion in leveraged positions.
The endorsement marks Musk’s strongest pro-Bitcoin rhetoric since Tesla’s 2021 purchases, when the corporate acquired $1.5 billion in BTC.
Musk’s crypto historical past has additionally been unstable and market-moving. Including “#bitcoin” to his Twitter bio in January 2021 sparked a ten% value surge, whereas asserting Tesla would settle for Bitcoin in February 2021 pushed the token to all-time highs.
Nonetheless, reversing that call in Might 2021 attributable to environmental considerations triggered a 12% decline. Tesla later offered 75% of its Bitcoin holdings in Q2 2022 for $936 million, retaining solely $184 million value.
SpaceX additionally reportedly wrote down $373 million in Bitcoin holdings throughout 2021 and 2022, though blockchain knowledge reveals the corporate nonetheless holds 6,977 BTC, valued at roughly $818 million, underneath Coinbase Prime custody.
In the meantime, Musk shifted to championing Dogecoin all through 2022-2024, integrating it into X (previously Twitter) and dealing with builders on transaction effectivity.
The truth is, in the present day, when a consumer commented that “Dogecoin can also be based mostly on vitality” underneath his latest Bitcoin tweet, Musk replied with a “
” emoji, sustaining his assist for the meme coin.
— Elon Musk (@elonmusk) October 14, 2025
AI Power Calls for Drive Foreign money Debasement Narrative
Musk’s Bitcoin endorsement is tied on to considerations about forex debasement, funding AI infrastructure enlargement.
The U.S. Division of Power initiatives knowledge facilities may devour between 325 and 580 terawatt-hours yearly by 2028, equal to powering 30-50 million houses.
Assembly AI’s projected vitality wants would require 40-70 new nuclear reactors by 2028, every producing roughly 8,000 gigawatt-hours (GWh) of vitality yearly.
The calculation seems inconceivable on condition that the U.S. has added solely two reactors in 30 years, with every new plant requiring over a decade to construct underneath present rules.
Goldman Sachs Analysis forecasts world knowledge middle energy demand will surge 165% by 2030, reaching 145 GW.
AI workloads at the moment account for 14% of knowledge middle consumption, however are anticipated to rise to 27% by 2027, equal to roughly 39.15 GW.
By 2040, DNV initiatives U.S. and Canadian knowledge facilities could account for 16% of electrical energy use, with 12% tied to AI.
Bitcoin at the moment consumes roughly 198 TWh yearly, equal to Thailand’s complete vitality utilization.
Single transactions require roughly 1,120 kWh, vastly exceeding the vitality consumption of conventional cost techniques.
Whereas AI vitality consumption is at the moment decrease, projections recommend it may surpass Bitcoin’s complete demand inside a number of years as computational necessities improve.
The vitality comparability helps Musk’s framing that “you’ll be able to’t print vitality,” positioning Bitcoin’s proof-of-work mining as anchored to bodily useful resource constraints that fiat currencies lack.
This narrative aligns with broader considerations about monetary debasement, as governments fund technological arms races by the issuance of forex.
Technical Setup Factors to Liquidity Sweep Earlier than Restoration
Bitcoin is buying and selling at $111,810 inside what analysts establish as a “big bullish channel” outlined by parallel ascending trendlines.
The higher boundary initiatives towards $127,000-$128,000, whereas the decrease assist sits round $103,000-$105,000. The latest liquidation occasion briefly violated this decrease boundary earlier than recovering.
Quantity profile evaluation has revealed substantial buying and selling exercise concentrated between $110,000 and $115,000, with smaller liquidity clusters round $107,000 and $109,000, and bigger clusters at $116,000 and $120,000.
$BTC has a small liquidity cluster across the $107,000-$109,000 stage.
The large liquidity cluster is across the $116,000 and $120,000 stage.
I believe Bitcoin will most certainly sweep the draw back liquidity earlier than any constructive value motion. pic.twitter.com/g2DJ0iqsY1— Ted (@TedPillows) October 14, 2025
Analysts count on Bitcoin to seemingly sweep draw back liquidity towards $107,000-$109,000.
The important thing $100,000-$103,000 zone stays the make-or-break stage figuring out whether or not the broader bullish construction holds.
Bitcoin is anticipated to face consolidation between $110,000 and $116,000, with a possible draw back sweep towards $107,000-$109,000 earlier than making an attempt a restoration towards $116,000-$120,000, the place liquidity clusters are current.
Breaking beneath $100,000-$103,000 assist would invalidate the bullish channel construction and point out deeper correction potential.
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