Musk Supports Trump, but Predicts Cryptocurrency Prices Will Plummet?

Today, Bitcoin's price plunged, nearing $95,000, as a large amount of funds betting on Trump's trades exited, resulting in $205 million in long positions being liquidated within an hour. Tesla CEO Musk stated that if the new government efficiency department established by Trump successfully combats inflation, the prices of cryptocurrencies like Bitcoin and Dogecoin may drop.

Previously, after Musk supported Trump's presidential campaign, the prices of Bitcoin and Dogecoin skyrocketed, with traders anticipating that Musk would help Trump establish a government that supports cryptocurrencies. However, Musk now indicates that if the government efficiency department successfully combats inflation, cryptocurrency prices would decline, as the purchasing power of the dollar increases, reducing the relative value of cryptocurrencies.

Additionally, Musk opposes excessive government spending and supports the establishment of a government efficiency department to cut spending. Due to the similarity in abbreviation with Dogecoin's English name, its actions have an impact on Dogecoin's trend. The current economic backdrop is characterized by soaring U.S. debt and out-of-control inflation, and Musk's campaign aims to reduce government spending to combat inflation.