Elon Musk Calls Bitcoin ‘Energy Money,’ Says It’s Impossible to Fake Unlike Fiat – New ATH Coming?
Elon Musk has returned to Bitcoin advocacy after years of environmental criticism, calling it “vitality cash” that can’t be faked, not like fiat foreign money. The Tesla CEO tweeted on Tuesday that “you possibly can difficulty pretend fiat foreign money, and each authorities in historical past has accomplished so, however it’s unattainable to pretend vitality.”
The endorsement got here in response to a put up 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 priceless, evaluating it with the limitless printing of fiat cash.
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 through the October 10 liquidation event that wiped 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. Adding “#bitcoin” to his Twitter bio in January 2021 sparked a ten% worth surge, whereas saying Tesla would settle for Bitcoin in February 2021 pushed the token to all-time highs.
However, reversing that call in May 2021 due to environmental considerations triggered a 12% decline. Tesla later bought 75% of its Bitcoin holdings in Q2 2022 for $936 million, retaining solely $184 million price.
SpaceX also 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, beneath Coinbase Prime custody.
Meanwhile, Musk shifted to championing Dogecoin all through 2022-2024, integrating it into X (previously Twitter) and dealing with builders on transaction effectivity.
In truth, at the moment, when a user commented that “Dogecoin can be based mostly on vitality” beneath his current Bitcoin tweet, Musk replied with a “
” emoji, sustaining his help for the meme coin.
— Elon Musk (@elonmusk) October 14, 2025
AI Energy Demands Drive Currency Debasement Narrative
Musk’s Bitcoin endorsement is tied straight to considerations about foreign money debasement, funding AI infrastructure enlargement.
The U.S. Department of Energy projects knowledge facilities might eat between 325 and 580 terawatt-hours yearly by 2028, equal to powering 30-50 million properties.
Meeting 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 unattainable on condition that the U.S. has added solely two reactors in 30 years, with every new plant requiring over a decade to construct beneath present laws.
Goldman Sachs Research forecasts world knowledge heart energy demand will surge 165% by 2030, reaching 145 GW.
AI workloads presently account for 14% of knowledge heart consumption, however are anticipated to rise to 27% by 2027, equal to roughly 39.15 GW.
By 2040, DNV projects U.S. and Canadian knowledge facilities could account for 16% of electrical energy use, with 12% tied to AI.
Bitcoin presently 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 fee programs.
While AI vitality consumption is presently decrease, projections recommend it might surpass Bitcoin’s complete demand inside just a few years as computational necessities improve.
The vitality comparability helps Musk’s framing that “you possibly can’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 way of the issuance of foreign money.
Technical Setup Points to Liquidity Sweep Before Recovery
Bitcoin is buying and selling at $111,810 inside what analysts identify as a “big bullish channel” outlined by parallel ascending trendlines.
The higher boundary initiatives towards $127,000-$128,000, whereas the decrease help sits round $103,000-$105,000. The current liquidation occasion briefly violated this decrease boundary earlier than recovering.
Volume profile analysis 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.
Analysts anticipate Bitcoin to possible sweep draw back liquidity towards $107,000-$109,000.
The key $100,000-$103,000 zone stays the make-or-break stage figuring out whether or not the broader bullish construction holds.
Bitcoin is predicted 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 under $100,000-$103,000 help would invalidate the bullish channel construction and point out deeper correction potential.
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