Elon Musk warns that his plan for the USD could slow the price growth of Bitcoin.

Elon Musk will lead the newly established White House advisory office called D.O.G.E. This is a wordplay based on the love of the techno king of Texas for Dogecoin and is an abbreviation for Department of Government Efficiency. D.O.G.E Aims to Control Inflation

Elon Musk has advised former President Trump on many issues related to technology, business, and public policy. His ideas about increasing the efficiency of government operations could help reduce excessive spending in Washington, DC, slow the pace of federal budget deficits, and help contain inflationary pressures throughout the economy.

High deficits lead to inflation as government spending increases the velocity of money circulation in the economy and pushes prices higher. Meanwhile, the newly printed dollars by the Federal Reserve and lent to banks to buy government debt drive up the dollar and also drive up prices. A recent study by the Department of Economics at Princeton University estimated that the US budget deficit in 2021 has caused approximately 30% inflation in the US dollar in 2021-22. Prices are rising due to heavy spending in Washington starting from the financial market and then spreading throughout the economy, pushing up prices at gas stations and checkout counters in grocery stores. Musk Warns of New Resistance to Bitcoin Price

This effect is particularly pronounced in the cryptocurrency market and is evident in the price of Bitcoin and other major token groups such as ETH, XRP, SOL, and DOGE. In fact, many cryptocurrency investors say they prefer cryptocurrencies such as Bitcoin, Ripple, and Dogecoin as a safe haven for their savings against the inflation of the US dollar. While not all experts agree that Bitcoin is the dollar's inflation hedge, over any four-year period, the purchasing power of money held in the form of BTC increases significantly while the inflationary dollar loses purchasing power parity. But Musk warned in response sequence X on Tuesday that if the DOGE office's plan succeeds, this will be detrimental to Bitcoin's price, not support growth. The reason is that lower deficits and lower inflation will slow the pace of price increases across the board, including traditional financial markets such as stocks and Internet financial tools such as Bitcoin. The price of Bitcoin has dropped to a low of $94,600 on Wednesday after losing the $100,000 mark on Tuesday.