It will “go down” – Elon Musk warns that Doge could reach the price of Bitcoin rival Dogecoin

Elon Musk’s Doge Division of Government Efficiency, named after rival bitcoin Dogecoin, sent shockwaves through Washington as… Musk repeatedly warns of the “bankruptcy” of the United States.

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The price of Dogecoin skyrocketed along with the price of Bitcoin after the US presidential election won by Donald Trump for which Musk campaigned. With traders betting that Tesla billionaire and owner X will help Trump create a pro-crypto administration.

now, As traders prepare for Musk’s game-changing announcement in the cryptocurrency spaceMusk said that if his Doge division succeeds in combating inflation, it could lead to a decline in the prices of Bitcoin, Dogecoin and other major cryptocurrencies.

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ForbesHuge Bet on US Bitcoin Reserve for 2025 Helps Send Bitcoin Price Over $100,000by Billy Bambrough

“If the dollar inflation problem were solved, the price in dollars to buy cryptocurrency would actually fall, other things being equal,” Musk said. books To X in response to a post written by Garry Tan, CEO of startup incubator Y Combinator. “What matters is the ratio of dollars to cryptocurrencies,” Musk added.

Tan had posted a video clip of Canadian Conservative Party leader Pierre Poilievre explaining how he would reduce inflation in the country by reducing “excess spending.”

“My prediction for 2025 is that Dogecoin will rise if Elon Doge succeeds, and here’s why,” Tan posted.

US debt has soared in recent years, topping $34 trillion at the start of 2024, with coronavirus stimulus measures and lockdowns contributing to massive government spending and helping to send inflation out of control in 2022.

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ForbesThe Fed’s “biggest nightmare” suddenly became reality as Bitcoin prices soaredby Billy Bambrough

Inflation exceeding 10% forced the Federal Reserve to raise interest rates at a historic rate, resulting in higher debt interest payments and Which raises fears of a “death spiral.”

Musk’s campaign against excessive US spending led to the creation of the Doge Department of Government Efficiency, which Musk said he believes it could strip $2 trillion from US spending.

The Doge section is a reference to the shiba inu doge meme that is also linked to the cryptocurrency dogecoin, which Elon Musk has called his “favorite” cryptocurrency and has been accepted as payment by his Tesla car company — though Tesla continues to hold about 10,000 bitcoins With about $1 billion on its balance sheet.