Dogecoin surged over 10% to $0.3869 in the early Asian trading hours on Wednesday after U.S. President-elect Donald Trump said on Tuesday Elon Musk and former Republican presidential candidate Vivek Ramaswamy will lead the newly created Department of Government Efficiency (DOGE).
The acronym “DOGE” is a nod to Musk’s favorite cryptocurrency, dogecoin. Trump said in a statement that Musk and Ramaswamy will work from outside the government to offer the White House “advice and guidance” and will partner with the Office of Management and Budget to “drive large scale structural reform, and create an entrepreneurial approach to Government never seen before.” He added that the move would shock government systems.
It’s not clear how the organization will operate. It could come under the Federal Advisory Committee Act, which dictates how external groups that advise the government must operate and be accountable to the public.
Following the announcement, Musk posted on X: “Department of Government Efficiency. The merch will be (fire emojis).” Later he added: “Threat to democracy? Nope, threat to BUREAUCRACY!!!”
https://x.com/elonmusk/status/1856504428913705061
Trump had made clear that Musk would likely not hold any kind of full-time position, given his other commitments.
Although Dogecoin initially spiked 10% following the news, it remains 12% lower than its previous day’s high of $0.4355. However, since Trump’s victory in the 2024 U.S. presidential election, Dogecoin has seen an impressive 142% increase.
The recent surge of Dogecoin has outpaced major cryptocurrencies such as Bitcoin, which gained nearly 30%, and Ethereum, which rose about 40% in the past week. Analysts credit Dogecoin’s rally not only to a positive market sentiment but also to strong support from high-profile figures like Elon Musk. His endorsements and public backing of Dogecoin and Trump have significantly fueled investor interest.
“It is a general tendency that when Bitcoin surges, other altcoins also surge. With this phenomenon Doge along with other coins have also performed well. However, Doge especially is up by 145% due to Elon Musk and Donald Trump’s close association pre and post the US elections,” said Edul Patel, CEO of Mudrex.
Dogecoin’s strong performance reflects optimism surrounding Trump’s pro-crypto stance and hopes for a more favorable regulatory environment. Other standout performers over the past week include Cronos (140%), Neiro (70%), Cardano (60%), and Bonk (60%).
Despite its surge, Dogecoin still trades below its all-time high of $0.7376, achieved during its peak in 2021.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
