Bitcoin held above the $104,500 (£77,037) mark on Thursday, despite mounting concerns over US national debt and fresh warnings from figures such as Coinbase coin (COIN) CEO Brian Armstrong and Tesla (TSLA) CEO Elon Musk.
Bitcoin was trading at $104,749 on Thursday morning, reflecting a slight pullback from the previous day’s close of $105,434.
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Coinbase’s Armstrong warned that unless the US electorate demands serious fiscal reform, bitcoin could begin to assume a much larger role in global finance.
“If the electorate doesn’t hold Congress accountable to reducing the deficit, and start paying down the debt, bitcoin is going to take over as reserve currency,” he wrote in a post on X.com.
Tesla and SpaceX CEO Musk echoed the alarm, stressing the growing strain debt service is placing on government resources.
“Interest payments already consume 25% of all government revenue. If the massive deficit spending continues, there will only be money for interest payments and nothing else,” Musk said on X.com.
Analyst sentiment remains divided bitcoin’s short-term outlook. Some warn that rising geopolitical tensions and weakening technical signals may trigger a correction below the psychologically important $100,000 level.
Standard Chartered (STAN.L) head of digital assets research Geoff Kendrick gave a cautious note, saying that recent price volatility could spell trouble for the growing number of companies now holding bitcoin on their balance sheets. According to Kendrick, 61 publicly listed firms currently hold 673,897 BTC, around 3.2% of all bitcoin that will ever exist.
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“Bitcoin treasuries are adding to bitcoin buying pressure for now, but we see a risk that this may reverse over time,” Kendrick said, pointing out that many corporate buyers have break-even prices above $90,000. Should bitcoin fall 22% below those levels, forced liquidations may occur.
Strategy, formerly MicroStrategy (MSTR), remains the dominant player, but Kendrick noted that “MSTR imitators” have doubled their holdings in just two months, often buying at higher prices, potentially setting up more downside risk.
Despite the bullish backdrop from corporate treasuries, Kendrick cautioned that a downside shift in market dynamics could quickly turn them into a source of volatility rather than strength.
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