The Bitcoin community reacted with renewed optimism after Elon Musk suggested the United States economy could enter a period of strong expansion within the next 12 to 18 months.
Musk said accelerating advances in applied artificial intelligence could act as a powerful driver of economic growth.
Double-digit growth is coming within 12 to 18 months. If applied intelligence is a proxy for economic growth, which it should be, triple-digit is possible in around five years.
Elon Musk said.
Bitcoin investors frequently monitor macroeconomic signals, including growth forecasts and monetary policy, to gauge future demand for risk assets.
Market participants said stronger economic growth could support capital inflows into digital assets such as Bitcoin.
Expectations around interest rate cuts by the US Federal Reserve have also remained a closely watched catalyst for crypto markets this year.
Supporters of Musk’s comments argued that looser financial conditions combined with rapid technological innovation could benefit Bitcoin adoption.
Bitcoin entrepreneur Anthony Pompliano echoed Musk’s outlook and highlighted the scale of the forecast.
The world’s richest man is predicting double-digit GDP growth within 18 months and says triple-digit growth is possible if AI reaches its potential.
Anthony Pompliano said.
Real world asset yield infrastructure firm Oryon Finance said Musk’s economic projections should not be dismissed lightly.
Musk’s predictions are usually not random noise.
Oryon Finance said.
Despite the optimism, several market observers questioned Musk’s historical accuracy when forecasting economic trends.
Analyst Artem Russakovskii said Musk’s predictions have not always proven reliable in past market cycles.
Concerns about a potential Bitcoin bear market in 2026 continued to temper bullish sentiment.
Some analysts warned that strong rallies are often followed by prolonged consolidation or downturns.
Market commentator Bariksis said that a downturn may still be looming regardless of short-term economic optimism.
Despite the growth narrative, we are heading into a bear market in 2026.
Bariksis said.
Veteran trader Peter Brandt has also cautioned that Bitcoin could face a significant retracement during the next cycle.
Fidelity’s global macro research director Jurrien Timmer previously said Bitcoin may trade closer to the $60,000 range in 2026.
Data showed that Bitcoin has already pulled back sharply from recent record highs.
Bitcoin was trading near $87,700 at the time of publication after falling almost 30% from its October peak above $125,000.
Analysts said the divergence in views reflects ongoing uncertainty about Bitcoin’s long-term trajectory.
Some investors believe that technological innovation and macroeconomic growth will underpin another major rally.
Others argue that cyclical patterns and tightening liquidity could pressure prices over the medium term.
Market participants said Musk’s comments have reignited debate over whether Bitcoin’s next major move will be higher or lower.
Analysts expect macroeconomic data and central bank policy decisions to remain critical drivers for Bitcoin in the months ahead.
At the time of reporting, Bitcoin price was $87,709.51.