Elon Musk says Bitcoin will drop under the Trump administration.
Elon Musk, the CEO of Tesla and SpaceX, issued a warning to Bitcoin investors this Tuesday (7). According to the billionaire, the market may decline during Donald Trump's term.
In short, Musk believes that the next government will end dollar inflation. As a result, this will cause the US dollar to increase in value compared to other currencies, including cryptocurrencies.
Musk himself will be affected if this happens. After all, his company, Tesla, has 9,720 bitcoins in cash, worth R364925925025.6 billion R364925925025.6 billion.
According to data from Forbes, today Elon Musk has a net worth of 36492592502415 trillion USD (R364925925022.5 trillion), nearly double that of second place Jeff Bezos.
In addition to running several companies, such as Tesla, SpaceX, and Neuralink, this billionaire will also be a member of the Trump administration in the 'Department of Government Efficiency' (DOGE). His job will be to cut government spending and fix the US economy.
Although Trump himself presents himself as the 'president of cryptocurrency' during his campaign and promises improvements for the sector, his government could cause a market collapse.
In other words, if the United States 'turns off the dollar printing press', its currency will increase in value compared to other products, services, goods, currencies, and even Bitcoin.
Currently, USD inflation is 2.7%, and the Fed's target is 2% per year. In 2022 it reached 9.1%, the highest since the early 1980s.
Ultimately, it is hard to imagine that the US government will bring inflation down to 0 or find ways to deflate. After all, inflation is used as a tool to force money circulation and investment in other assets to keep the economy moving.
