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Elon Musk Predicts Potential Drop In Bitcoin, Dogecoin Prices If Dollar Inflation Is Addressed

2025/01/08 09:30

Elon Musk Predicts Potential Drop In Bitcoin, Dogecoin Prices If Dollar Inflation Is Addressed

Elon Musk predicted Tuesday that cryptocurrencies like Bitcoin (CRYPTO: BTC) and Dogecoin (CRYPTO: DOGE) could see a drop in prices if dollar inflation is addressed.

What Happened: The Tesla (NASDAQ:TSLA) and SpaceX CEO shared his thoughts on how cryptocurrencies would stand to gain if inflation and government overspending were curbed

“If dollar inflation is solved, the price in dollars to buy cryptocurrency will actually drop, other things being equal,” Musk wrote in an X post. “What matters is the ratio of dollars to cryptocurrency.”

If dollar inflation is solved, the price in dollars to buy cryptocurrency will actually drop, other things being equal.

What matters is the ratio of dollars to crypto.

The comment came in response to a post by Garry Tan, CEO of Y Combinator, who predicted that Dogecoin’s price would increase if Musk’s upcoming Department of Government Efficiency, or DOGE, achieves its goal of reducing government spending.

See More: Best Cryptocurrency Apps

Why It Matters: Musk’s comments come as reports have surfaced that the tech mogul is set to introduce a new Bitcoin and cryptocurrency feature called “X Money” on X.

According to a leak shared by influencer Alex Finn and MacRumors contributing researcher Aaron Perris, “X Money” could be launched without needing approval from all 50 states.

Musk has been a known supporter of the DOGE meme coin, with the acronym for his upcoming government department being a nod to the dog-themed cryptocurrency.

Price Action: At the time of writing, Bitcoin was trading down 4.81% over the past 24 hours at $96,967.23, according to Benzinga Pro data. DOGE was down 9.41% over the past 24 hours at $0.3515.

Image via Flickr

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