The inflation rate in the United States is skyrocketing. Recently, the figure touched its highest level in nearly 40 years. While the US inflation rate is impacting the global economy, it’s also fueling the interest in cryptocurrency assets. Elon Musk, the Chief Executive Officer of Tesla and SpaceX, who owns Bitcoin, Ethereum and Dogecoin, mentioned in a recent tweet that he is not aiming to sell his digital assets anytime soon.
“I still own & won’t sell my Bitcoin, Ethereum or Doge,” Musk said. In addition, he highlighted the impact of inflation on the raw material and logistics of Telsa, the world’s largest electric car maker and one of the biggest institutional holders of BTC.
Musk has been one of the biggest supporters of Bitcoin, Ethereum and other digital assets. In February 2021, Tesla announced that the company is holding $1.5 billion worth of BTC. Although the electric car maker sold almost 10% of its BTC holdings last year, it still owns a large amount of Bitcoin.
Bitcoin and Inflation
Considered widely as a hedge against rising inflation, Bitcoin has gained significant popularity among institutional investors in the last few years. Large investors are now diversifying their investment portfolios through different digital currencies. In a Twitter thread, Musk asked his followers about their views on the rising inflation. Michael Saylor, the CEO of MicroStrategy, said that weaker currencies will collapse due to rising inflation.
“USD consumer inflation will continue near all-time highs, and asset inflation will run at double the rate of consumer inflation. Weaker currencies will collapse, and the flight of capital from cash, debt & value stocks to scarce property like Bitcoin will intensify,” Saylor said in a reply to Elon Musk.
Despite rising adoption, BTC, Ethereum and other digital assets have remained in a downtrend during the past three months.
