Donald Trump’s presidential victory sparked crypto confidence to the point that Dogecoin surged to its highest levels in months. Ardent Doge hacktivist Elon Musk, a major Trump campaign donor, is slated to play a critical role in the administration. Trump’s win and praise of Musk have helped raise interest among investors, with its price rising 24 percent just after the election results.
Last year, the Shiba Inu-themed cryptocurrency reached a price of $0.07 but rose to $0.20 on Wednesday. Musk’s association with the Trump administration has further strengthened investor faith in DOGE, market analysts said. The coin remained the same at around $0.19, having dropped slightly on Thursday but 157% year over year.
That involvement in Trump’s administration from Musk will mean a lot of extra media coverage for Dogecoin. If crypto believers believe that the alleged catalyst for DOGE’s growth is the renewed interest in Musk’s political dealings, his input will always influence crypto’s value. Musk’s engagement with DOGE is something market watchers hope gets it into the ranks of the top cryptocurrencies.
Potential ‘DOGE’ Department Signals a Formal Role for Dogecoin
Musk said the new White House role could centre on the proposed Trump Department of Government Efficiency, “DOGE.” This fits in with Musk’s record of efforts to reduce federal spending and cut junk, a common theme associated with his attempt to streamline government operations. Dogecoin’s community woke to the news that the department’s acronym matches Dogecoin’s ticker, indicating a possibly official role for Dogecoin within governmental discourse.
When asked about his role in DOGE, Musk said yes, and DOGE later rose by 15 percent in value. Speculation is rife that his staunch support for Dogecoin and his backing for Trump’s platform may boost Dogecoin’s visibility and general adoption through his DOGE department. Investors have also gotten on board with Trump’s suggestion of Musk as a “super genius,” helping to boost DOGE’s price.
If Musk is at the helm, the proposed DOGE department could help increase people’s awareness of Dogecoin, especially those paying attention to Musk’s ventures. Dogecoin has evolved directly in alignment with Musk’s skills in financial expertise, and the government’s fiscal plans, these observers suggest, can serve to aid Dogecoin’s adoption indirectly. Musk’s involvement at the top of the Trump establishment has solidified investor confidence in DOGE.
Musk’s Influence Drives DOGE to New Highs
DOGE has long been a HUGE influence from Musk, frequently impacting its price with endorsements and even Tweets. DOGE’s value grew 24% after Musk endorsed Trump for social media platform X, largely because of his role in the success of cryptocurrency. Last year, it saw a peak market cap of $88 billion by championing previous DOGE promotions, including a famous ‘dogefather’ mention on Saturday Night Live.
Trump’s victory celebration, in which Trump, almost as if he recognized Musk’s political involvement, cemented Dogecoin’s relationship with him. This has brought investor confidence back and helped DOGE maintain its current rank as the 8th largest cryptocurrency by market cap after it recently won a class action lawsuit against Musk over a DOGE price manipulation allegation. Dogecoin’s growth and rising visibility, as evidenced by what has happened so far, are a result of Musk’s backing and increasing political influence.
However, analysts say DOGE will be volatile because Musk’s position in U.S. politics is evolving. Dogecoin, too, has become an increasingly important cryptocurrency since Musk’s support of Trump and his substantial financial backing for the campaign. Musk’s proximity to Trump’s White House and the US president himself could continue to spur up DOGE’s interest and fluctuating prices, making Dogecoin a hot spot for crypto fanatics and investors from all over.
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