Elon Musk predicts Bitcoin-slip

• Trump victory lets Bitcoin course rise
• Musk becomes the head of new US Ministry “Doge”
• According to Musk, Bitcoin could stand before the course slip

Cryptocurrencies like the Cyberdevise Bitcoin completed a successful year in 2024. For the first time in the United States, spot ETFs for the cryptocurrencies Bitcoin and Ethereum were approved, Bitcoin took its fourth halvening and for the first time exceeded the $ 100,000 mark. The digital currencies were pushed in particular by Donald Trump’s election victory to the US president, since he had successfully positioned himself as a crypto-friendly presidential candidate and he hopes for a crypto-friendly policy.

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Elon Musk provides tailwind

The fact that Trump received vigorous support from crypto and Tesla boss Elon Musk also helped. Trump announced in November 2024 that he wanted to set up his own ministry to increase the government’s efficiency, which Musk should lead together with Vivek Ramaswamy. The name of the Ministry: Department of Government Efficiency, or Doge for short, alluding to the fun cryptocurrency of Dogecoin, which Musk helped to support great success in the past. So the Dogecoin 2024 was able to put an even steeper rally than the Bitcoin. While the Urcyberdevise was able to grow 114.58 percent in 2024, the Memecoin even recorded an increase of 253.37 percent.

Now that Trump started his office and has already put the first project into practice, crypto supporters hope that the positive development of Bitcoin & Co. continues. But of all people, Elon Musk recently took the wind out of the sails by predicting a price slide at Bitcoin.

Doge could provide Bitcoin course slip

This is related to the Ministry of Dogen under Musk’s management. This sets itself the task of reducing the enormous state deficit of the United States, because the debt of the United States has increased drastically in recent years and, according to Forbes, was estimated at $ 34 trillion in early 2024. The cause was, among other things, the Corona pandemic and the subsequent stimulation measures. These in turn led to a rapid price increase, so that inflation temporarily increased to over ten percent, which led to a strict tightening course of the key interest, which raised the interest payments for debt.

In the past, however, increasing inflation has also helped cryptocurrencies such as Bitcoin too strong tailwind, since numerous investors put on cyberdevisen in order to bring their savings into safety before the dollar inflation, similar to traditional investors than inflation protection.

Conversely, however, this also means that a declining inflation can have a negative impact on the Bitcoin course. Musk recently indicated in an X-contribution: “If the dollar inflation has been solved, the price in dollars for buying cryptocurrencies will actually decrease if all other things remain the same. What counts is the ratio of dollars too Krypto. “, Says Musk.

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

What matters is the ratio of dollars to crypto.

– Elon Musk (@elonmusk) January 7, 2025

In response to an X contribution by Y Combinator CEO Garry Tan, Musk replied that another upswing in the Dogecoin Prize in 2025 promises to reduce the government expenditure. Now it remains to be seen whether Musk will actually succeed in reducing US debt and how this will actually affect Bitcoin, Dogecoin & Co.

Editor finance.net

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