Dogecoin (DOGE) made a steep climb up minutes after the United States government’s official Department of Government Efficiency (DOGE) website launched, prominently featuring the Dogecoin logo.
Dogecoin Price Rallies
Dogecoin jumped 16.7% on Tuesday within an hour, reaching $0.4043 and pushing its market cap to $56.15 billion.
The massive spike in trading volume followed the launch of the US Department of Government Efficiency’s official website, which prominently features the iconic dog-themed memecoin logo alongside the message, “The people voted for major reform.”
President Donald Trump signed an executive order on Monday to establish an advisory group called the Department of Government Efficiency to implement dramatic cuts to government spending and workforce headcounts.
“To restore competence and effectiveness to our federal government, my administration will establish the brand-new Department of Government Efficiency,” Trump announced during his inaugural speech.
Billionaire Tesla CEO Elon Musk is expected to be appointed to lead the Department of Government Efficiency. However, he will serve as an outside volunteer rather than a federal official or employee.
Dogecoin Gains Momentum
Dogecoin has gained significant momentum following developments around Elon Musk’s non-governmental agency, with retail investors seeing the agency’s name and now the logo as a potential catalyst for the memecoin’s price.
The memecoin broke out of the falling wedge pattern on January 15, spiking above $0.43 and successfully retesting that level. It is expected to head towards $0.50 in short term.
Despite the rally, Dogecoin remains 48.7% below its all-time high of $0.7376, reached in May 2021.
Why This Matters
Elon Musk has previously shown the power to influence Dogecoin’s price through his public statements, tweets, and product integrations. Given that his past actions have frequently swayed the crypto market, his current involvement with a DOGE agency could add to potential price volatility for Dogecoin.
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