Billionaire and Tesla co-founder Elon Musk has reignited the debate over Bitcoin’s value by calling it a true energy-backed currency. His claim clashed with Peter Schiff’s warnings as billions in short positions risk liquidation if Bitcoin climbs higher.
Elon Musk Says Bitcoin’s Strength Comes From Energy
Elon Musk intensified the continued discussion around Bitcoin’s real value after stating that the cryptocurrency is built on energy and cannot be faked. A new clip from an interview with entrepreneur Nikhil Kamath showed Musk making his point.
He said energy remains the “true currency,” and Bitcoin reflects that idea. Musk said governments can print money, but they cannot print energy. He noted that energy is difficult to create and even harder to use efficiently. He said this creates a natural barrier that strengthens Bitcoin’s foundation.
Musk added that future value systems may rely more on energy than traditional structures. The clip followed earlier comments where Musk agreed with a post saying that Bitcoin rises because energy cannot be printed.
Schiff Renews Bitcoin ‘Fake Asset’ Claims
His remarks came as Peter Schiff renewed attacks on Bitcoin and Michael Saylor’s Strategy. Schiff said BTC price is not falling because it is a risk asset but because he believes it is a “fake asset.”
He compared Bitcoin’s performance to the Nasdaq and said the difference shows a shift toward what he calls “real assets.” Schiff also argued that Strategy cannot pay preferred-share dividends without selling more shares or selling Bitcoin.
He described the structure as similar to a Ponzi setup and said it exposes weak fundamentals. However, Michael Saylor hinted at fresh Bitcoin purchase, suggesting Strategy remains confident in the coin over the long-term.
New data now adds further weight to the market tension. Fresh figures from Whale Insider show that more than $7.8 billion in short positions will be liquidated if Bitcoin rallies to $100,000.
Bitcoin Breakout More Likely with Increasing Short Clusters
The data obtained from CoinGlass shows that the total short liquidations leverage will grow significantly once Bitcoin price is above $91,000. This means many traders may be forced to close their short positions if the price rises.
These forced buybacks can push the price even higher and create fast rallies. Major exchanges like Binance, OKX, and Bybit also show many short positions sitting near important resistance levels.
In addition, an analysis revealed many significant causes that can push Bitcoin price to $100,000 or above. These are in line with the pressure building in the derivatives market. This indicates that there is a high number of traders who are still betting that BTC price will drop from its current position.
Their action is a contrast to the big buyers who continue to buy more BTC. This unequal distribution is the reason a rapidly changing price becomes more likely in case Bitcoin rises over its resistance levels.
Source: https://coingape.com/elon-musk-says-bitcoin-is-true-energy-currency/
