Dogecoin drops as Trump appoints Elon Musk to co-lead DOGE
The price of the largest and oldest meme coin, dogecoin (DOGE), dropped today after Donald Trump confirmed that Tesla CEO and DOGE enthusiast Elon Musk will co-lead the Department of Government Efficiency (also referred to as DOGE).
Paul Yeung/Bloomberg via Getty Images.
The price of the largest and oldest meme coin, dogecoin (DOGE), dropped today after Donald Trump confirmed that Tesla CEO and DOGE enthusiast Elon Musk will co-lead the Department of Government Efficiency (also referred to as DOGE).
At the time of writing, DOGE, the cryptocurrency, is trading at approximately USD 0.38, down 8% in a day. However, the price has nearly doubled in a week and is up by 241% over the past month, following Trump's victory in the U.S. presidential race on November 5th.
Market speculation suggests this win could benefit DOGE, as Musk – now a close ally of Trump – has been advocating for the creation of the Department of Government Efficiency, using the acronym DOGE and incorporating images of a dog in related posts.
undefined Elon Musk (@elonmusk) November 13, 2024
The price drop might also be tied to a broader market correction and the so-called "sell the news" event, where traders take profits following a highly anticipated development.
Nonetheless, DOGE has outperformed other major crypto assets like bitcoin (BTC) and ethereum (ETH), which have risen by 20% and 23%, respectively, over the past week.
Meanwhile, the governmental DOGE department will also be co-led by entrepreneur and former presidential candidate Vivek Ramaswamy, who is known for his crypto-friendly stance.
According to an announcement by the Trump team, the two leaders of the efficiency department are expected to help Trump's administration "dismantle government bureaucracy, slash excess regulation, cut wasteful expenditures, and restructure federal agencies." These changes are described as "essential to the 'Save America' movement."
The announcement further stated that the department would provide "advice and guidance from outside of government" to drive "large-scale structural reform and create an entrepreneurial approach to government never seen before." Musk and Ramaswamy are expected to complete their work by July 4th, 2026.