Elon Musk Predicts Cryptocurrency Market Could Drop 90%: Reality or Trick?

In a recent speech, Elon Musk - CEO of Tesla and SpaceX - shocked the cryptocurrency community by expressing concerns about the possibility of a major market correction. He stated, 'If the inflation of the US dollar is resolved, the dollar value of cryptocurrencies will truly decrease, provided that other factors remain unchanged.' Musk's forecast: The market could see a sharp decline Musk's assessment focuses on the relationship between inflation and the value of cryptocurrency when converted to US dollars. In the context of declining inflation and a rising dollar, cryptocurrency – traditionally seen as a hedge against currency depreciation – may lose some of its attractiveness. This scenario could lead to a major correction, with the value of some digital assets dropping by up to 90%. The main cause leading to the forecast Global economic stability: If central banks successfully control inflation, confidence in fiat currency will increase, reducing the demand for investment in decentralized assets such as Bitcoin or Ethereum. Overvaluation: The cryptocurrency market has seen significant corrections after periods of rapid growth, and this could recur. Impact of economic policies: Stricter regulations on cryptocurrencies from major countries such as the US, China, or the European Union could also put pressure on market value. High volatility of cryptocurrencies The cryptocurrency market is known for its unpredictable fluctuations, where sharp increases or decreases often occur in just a few days. However, experts also warn that Musk's remarks - while noteworthy - need to be carefully considered. Contradictory views Some analysts in the financial industry believe that this forecast may be manipulative or reflect the instability in Musk's views on cryptocurrency. Previously, Musk has praised Bitcoin and Dogecoin, contributing to a sharp increase in prices. This time, his negative outlook may have the opposite effect. Advice for investors Portfolio diversification: Investors should divide their investment capital into multiple asset classes to minimize risk. Thorough research: Instead of relying on an individual's opinion, educate yourself on the economic and technological factors that affect the market.Long-term investment: Cryptocurrency is a new and potential field, but only suitable for investors who are able to withstand large fluctuations. Conclusion Although Elon Musk's remarks may cause panic, they also serve as a reminder of the risks in cryptocurrency investment. Volatility is always part of this market, and any decision should be made with careful consideration. Whether real or a trick, only time will tell whether Musk's forecast is accurate. But one thing is certain: investors need to prepare for any scenario that may occur in this complex cryptocurrency world.