Elon Musk’s Doge Department of Government Efficiency (D.O.G.E) is raising questions about its potential to drive down Bitcoin, Dogecoin, and other crypto prices. According to Forbes, Musk claims that solving U.S. inflation could lead to a drop in cryptocurrency prices, including Bitcoin and Dogecoin. He explained on X, “If dollar inflation is solved, the price in dollars to buy cryptocurrency will actually drop, other things being equal.”
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Musk’s Doge Initiative Aims to Slash Spending
The Doge Department, a cheeky nod to the Dogecoin meme, is Musk’s solution to runaway government spending. With U.S. debt surpassing $34 trillion, Musk has proposed trimming $2 trillion from government expenditures. His vision has resonated with crypto traders betting that his influence could shape a more crypto-friendly environment under Donald Trump’s administration.
What It Means for Crypto Prices
Musk’s comments tie cryptocurrency value to inflation. If inflation eases, the purchasing power of the dollar increases, potentially lowering dollar-denominated crypto prices. However, Forbes notes Dogecoin’s price has surged alongside Bitcoin since Trump’s election, fueled by trader optimism.
At the time of writing, Dogecoin is sitting at $0.3318.
