15 Oct 2025, 08:22 AM IST i Elon Musk’s Evolving Relationship With Bitcoin Musk’s latest endorsement marks yet another twist in his on-and-off relationship with Bitcoin. In early 2021, Tesla briefly accepted Bitcoin as payment for its electric vehicles, a move that sent the cryptocurrency’s price soaring. Less than two months after the announcement, Musk posted on social media in May 2021 that Tesla would stop accepting Bitcoin as a payment method, citing environmental concerns and Bitcoin’s high energy consumption as the reasons behind the decision. The reversal triggered a massive sell-off in the crypto market, wiping out billions in value. Later, in July 2022, Tesla dumped 75% of its Bitcoin holdings a year after touting its long-term potential. “As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency,” Tesla said in its second-quarter earnings statement that year, according to a report in CNBC. Despite this, data from on-chain analytics firm Arkham Intelligence shows that the company still holds 11,509 BTC, valued at around $1.3 billion. Earlier this year, Musk said that his newly launched “America Party” would embrace Bitcoin, suggesting his renewed interest in the cryptocurrency’s potential. Responding to a post on X questioning whether the America Party would support cryptocurrency, Musk offered a concise reply that hinted at his scepticism towards the US dollar. When asked, “Will America Party embrace Bitcoin?”, Musk responded, “Fiat is hopeless, so yes.” Fiat is hopeless, so yes