Elon Musk, head of the Department of Government Efficiency (D.O.G.E.), has cautioned that his proposed policies to reduce fiscal deficits and lower inflation could negatively impact the price of Bitcoin.
Musk's office aims to improve government efficiency and reduce excess spending, which could slow the rise of some financial assets.
He noted that deficit reduction could reduce the liquidity that drives the prices of financial assets, including Bitcoin.
This decrease in inflation could weaken the attractiveness of digital assets as a hedge against dollar depreciation.
Bitcoin is currently undergoing a significant correction, with the price of Bitcoin dropping to $92,255, after crossing the $100,000 barrier earlier this month.
