When Tesla (NASDAQ:TSLA) CEO Elon Musk appeared on Saturday Night Live, Dogecoin fell sharply. The CEO suggested on the show that he hyped the cryptocurrency somewhat. That unnerved bitcoin prices, too. Bitcoin peaked at over $60,000 and did not recover since then.

Bitcoin has a long history of volatility. At each downturn, it would bounce back sharply. This time is no different. The sharp correction is unlikely to last. Skeptics who do not understand the perceived value of bitcoin will only rise.

The central banks continue to print money and keep interest rates low. Concerned about growth and ignoring inflation, bitcoin is holding its store of value. Fiat currency is losing value on double-digit inflation rates.

Supporters of currency will argue that high inflation rates are temporary. The pandemic is easing, which will cause a surge in demand. This influx in demand is temporary.

That implies the price surge is temporary.

Once bitcoin recovers, markets will renew fears of permanent inflation. Markets will question the excessive stimulus and infrastructure spending in the U.S. They will examine the PC component shortages and raw material cost increases. Once they conclude that inflation is here to stay, cryptocurrency prices will strengthen.

Investors may continue accumulating bitcoin and Ethereum. Conversely, holding crypto mining stocks like Marathon (NASDAQ:MARA) and Riot Blockchain (NASDAQ:RIOT) would expose investors to the cryptocurrency market.