Elon Musk and Trump Fuel Cryptocurrency Surge: Bitcoin Nears $100K, Dogecoin Leads Market Rally

Elon Musk is back in the spotlight, and this time it's all about cryptocurrency. Recently, Bitcoin prices surged past $90,000, marking a 20% increase in just one week. Traders are now looking toward the possibility of Bitcoin hitting $100,000, especially after Donald Trump's recent presidential victory.

Meanwhile, Musk's favorite cryptocurrency, Dogecoin, is also on the rise. It's leading a price rally that has pushed the total cryptocurrency market cap back over $3 trillion for the first time since 2021.

After a leak revealed that BlackRock plans to invest more in Bitcoin, Musk praised Dogecoin, which he once famously said he would "send to the moon." In a recent post on X, he responded to Dogecoin co-creator Billy Markus, who suggested that users could propose removing Dogecoin's inflation. Musk stated, "I think the flat inflation of Dogecoin, which means decreasing percentage inflation, is a feature, not a bug."

Markus explained that changes can be made to Dogecoin's structure if the community agrees. He highlighted that steady, predictable inflation with a decreasing percentage is beneficial for a currency, especially when compared to the U.S. dollar.

Dogecoin was created as a fork of Bitcoin, using a similar codebase but allowing for unlimited supply. This is different from Bitcoin's capped supply of 21 million coins. This week, Dogecoin's price has returned to levels not seen since Musk's crypto boom in 2021. His public support for Bitcoin and Dogecoin during that time played a big role in the market's rise, which later led to legal challenges when the bubble burst. A judge dismissed a lawsuit claiming Musk and Tesla inflated Dogecoin's price into a $258 billion "pyramid scheme" earlier this year.

Both Tesla and Musk's company, SpaceX, accept Dogecoin for certain purchases. Musk has also shared that he personally owns some of this meme-based cryptocurrency. Recently appointed by Trump to lead a new government department, Musk has warned that inflation could threaten the U.S. dollar.

In the lead-up to the election, Musk actively campaigned for Trump. Now, he is part of a group of advisors who support Bitcoin and crypto around the president-elect. Trump's victory has driven Bitcoin prices higher, as traders speculate that his administration may ease regulations on the crypto market.

Trump has even suggested creating a U.S. Bitcoin strategic reserve, predicting that Bitcoin's value could eventually surpass gold. He has also mentioned the possibility of using Bitcoin to help pay off the U.S.'s $35 trillion debt.