Bitcoin Bulls Eye Rebound After Elon Musk Predicts US Economic Surge

Bitcoin's price trajectory just got a jolt of billionaire optimism.

Elon Musk's latest economic forecast—predicting a US surge—has crypto traders scrambling to position for what could be the next major leg up. The sentiment shift is palpable, with bulls arguing that a robust traditional economy could finally provide the stable runway digital assets need for sustained growth.

The Musk Effect Meets Market Mechanics

It's not just about cheerleading. The logic goes that a stronger economy boosts corporate and retail investment appetite, with a portion of that capital inevitably seeking higher-yield, alternative assets. Bitcoin, as the flagship crypto, stands first in line. This creates a potential feedback loop where positive macro news fuels crypto inflows, which in turn validates the bullish narrative.

Beyond the Hype: A Technical Rebound in Play

Chart analysts point to key support levels holding firm, suggesting the recent consolidation phase may be ending. The 'rebound' narrative isn't born from thin air—it's echoing across trading desks, with order books showing increased buy-side interest just below current prices. It's the classic setup: a fundamental catalyst meeting a technical opportunity.

Of course, tying your fortunes to the predictions of a mercurial CEO is a strategy about as reliable as a meme coin's whitepaper. But for now, the market is voting with its wallet, betting that for once, the hype might just align with the charts.

Fed Rate Cuts Put Macro Focus Back on Bitcoin’s Next Move

Macro expectations have long played a role in Bitcoin price action. Investors often track growth forecasts, inflation trends and US Federal Reserve policy to gauge whether conditions favor risk assets.

Rate cuts by the Fed earlier this year have already fueled debate over whether easier financial conditions could support a recovery in bitcoin after its recent pullback.

Several prominent figures in the crypto space backed Musk’s outlook. Bitcoin entrepreneur Anthony Pompliano noted that the world’s richest man is openly forecasting double-digit GDP growth, framing it as a potentially powerful backdrop for scarce assets like Bitcoin.

Meanwhile, real-world asset yield platform Oryon Finance said Musk’s projections tend to be “not random noise,” even if they are controversial.

Skepticism, however, remains. Some market watchers questioned Musk’s track record on long-term forecasts.

Elon, predictions that come true are not your strongest suit.

Analyst Artem Russakovskii said economic predictions are not Musk’s strongest area, urging caution in extrapolating the comments into market expectations.

Bearish views on Bitcoin’s medium-term outlook also persist. Market commentator Bariksis said that despite Musk’s optimism, he expects a Bitcoin bear market in 2026.

Veteran trader Peter Brandt and Fidelity’s Jurrien Timmer have similarly suggested Bitcoin could revisit the $60,000 range next year.

At the time of publication, Bitcoin was trading at $87,709, down nearly 30% from its Oct. 5 peak of $125,100, according to CoinMarketCap.

Bitcoin Remains Tied to Fed Policy as Inflation Eases Slowly, Analyst Says

According to Linh Tran, market analyst at XS.com, Bitcoin’s recent price action underscores the market’s sensitivity to monetary policy expectations rather than headline economic data.

While US inflation has eased from last year’s highs, the latest consumer price index reading of 2.7% suggests that the disinflation process remains slow and uneven, forcing “the Fed to maintain a cautious stance, making it difficult to pivot quickly toward an aggressive easing cycle,” Tran said in a note shared with Cryptonews.com.

Last week, K33 also said Bitcoin’s prolonged sell-side pressure from long-term holders may be approaching its limits after years of steady distribution.