Elon Musk says DOGE plan targets inflation, but threatens cryptocurrency prices

Elon Musk’s Department of Government Efficiency (DOGE) is raising questions about its ability to devalue Bitcoin, Dogecoin and others. encryption Prices. according to ForbesMusk claims that the solution of the United States Economic inflation It can lead to decline Cryptocurrency Prices, incl Bitcoin And Dogecoin. “If dollar inflation resolves, the dollar price of buying cryptocurrency will actually fall, other things being equal,” he explained on X.

Musk’s Doge initiative aims to cut spending

Dougie’s oath, a cheeky reference to Dogecoin meme, is Musk’s solution to runaway government spending. With US debt exceeding $34 trillion, Musk proposed cutting $2 trillion in government expenditures. His vision has resonated with cryptocurrency traders who are betting that his influence can shape even more A crypto-friendly environment in the era of Donald Trump administration.

What does it mean for cryptocurrency prices

Musk’s comments link the value of cryptocurrency to inflation. If inflation declines, the purchasing power of the dollar increases, which could lead to a decline in the prices of dollar-denominated cryptocurrencies. but, Forbes It notes that Dogecoin’s price has risen alongside Bitcoin since Trump’s election, driven by traders’ optimism.

At the time of writing, The price of Dogecoin is $0.3318.