Elon Musk, the billionaire CEO of Tesla, actively campaigned for Donald Trump last year, announcing a “financial emergency” prompted by the soaring U.S. national debt. He also proposed the creation of a Doge department aimed at improving government efficiency, which could harness bitcoin technology in the near future.

Recently, the price of bitcoin skyrocketed, surpassing $100,000, as traders speculated that escalating U.S. debt would lead to conditions favoring bitcoin’s growth.

Following his endorsement of Ron Paul, a prominent advocate for bitcoin and author of the book “End The Fed,” for the role of Federal Reserve chairman, Musk described the rapidly increasing U.S. debt as “terrifying.” Meanwhile, David Sacks, who has taken on the role of Trump’s crypto advisor, revealed that efforts are underway to develop a bitcoin reserve designed to potentially alleviate U.S. debt.

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Musk has openly shared his concerns about the national debt clock, recently posting, “The debt clock is terrifying,” in response to U.S. Senator Mike Lee, who expressed his alarm over the U.S. debt reaching an unprecedented $36 trillion, even highlighting the potential for Doge to instill some hope.

Last year at the Bitcoin 2024 conference, Trump vowed to establish a “strategic national bitcoin reserve,” even joking about using cryptocurrency to address the country’s massive debts. The U.S. debt has surged dramatically in recent years, fueled by extensive Covid-era stimulus measures and resulting in significant inflation, which spurred the Federal Reserve to implement record interest rate hikes.

This week, Sacks hinted that important announcements regarding the potential bitcoin reserve could be forthcoming, confirming the administration’s commitment to investigating this initiative seriously.

Musk’s Doge department pays homage to the popular Shiba Inu doge meme associated with dogecoin, which he has termed his “favorite” cryptocurrency. His association with Trump is anticipated to further energize the dogecoin market, which has seen substantial gains alongside the rising bitcoin price.