Dogecoin (DOGE) saw a steep rise within minutes of the launch of the US government’s official Department of Government Efficiency (DOGE) website, which featured the Dogecoin logo prominently.
Dogecoin Price Rally
Dogecoin rose 16.7% in an hour on Tuesday, reaching $0.4043, bringing its market capitalization to $56.15 billion.
After the official website of the Department of Government Efficiency was launched, trading volume surged significantly. The website prominently displays the iconic dog-themed memecoin logo along with the message “People voted for major reforms.”
President Donald Trump signed an executive order Monday to establish an advisory group called the Department of Government Efficiency to make deep cuts in government spending and headcount.
In his inauguration speech, President Trump said, “To restore the capabilities and efficiency of the federal government, my administration will establish a new Department of Government Efficiency.”
Billionaire Tesla CEO Elon Musk is expected to be appointed head of the Department of Government Efficiency. However, he will be working as an outside volunteer and not as a federal officer or employee.
Dogecoin gains momentum.
Dogecoin has gained significant momentum following developments around Elon Musk’s non-governmental entity, with retail investors seeing the entity’s name and now logo as a potential catalyst for the memecoin’s price.
Mimcoin broke out of a falling wedge pattern on January 15 and soared above $0.43 and successfully retested that level. In the near term, it is expected to head towards $0.50.
Despite this rally, Dogecoin remains 48.7% below its all-time high of $0.7376 reached in May 2021.
Why This Matters
Elon Musk has previously demonstrated his power to influence the price of Dogecoin through public statements, tweets, and product integrations. Given that his past actions have often swayed cryptocurrency markets, his current participation in the DOGE agency could increase the potential price volatility of Dogecoin.
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