Dogecoin surges 10% as Elon Musk names proposed government department DOGE

Elon Musk has proposed establishing a Department of Government Efficiency (D.O.G.E.) under another Trump presidency. The initiative aims to streamline government spending, simplify administrative processes, and enhance the efficient use of taxpayers’ money.

Former President Donald Trump has voiced support for Musk’s proposal, indicating he would appoint Musk to lead a government efficiency commission if re-elected. Per Yahoo Finance, Musk has donated over $75 million to American political action committees since July 2024, positioning himself as a key supporter of Trump’s presidential campaign.

The announcement has had a substantial impact on Dogecoin (DOGE). Dogecoin’s price surged by 10% within 24 hours, surpassing $0.13. According to Coinglass, open interest in DOGE futures increased 18.09% to $926.76 million, while options volume increased 616.31%, indicating heightened market activity and investor interest.

Social media platforms have witnessed a surge in Dogecoin-related discussions, reaching the highest levels in the past year. Traders speculate that Musk’s political involvement and the D.O.G.E. initiative could lead to increased retail interest in Dogecoin. Some believe that a potential Trump victory might further integrate “DOGE” into governmental discourse, somehow influencing the digital asset’s adoption and value.

Musk’s longstanding relationship with Dogecoin is well-documented, with previous announcements often causing significant price movements and leading to legal action against the billionaire. In April 2023, he hinted at the possibility of DOGE payments on Twitter (now X), sparking enthusiasm within the crypto community.

The proposed Department of Government Efficiency is envisioned to operate with corporate-style management principles, offering incentives for high performers and imposing consequences for underachievers. Musk unveiled the name of the initiative during a town hall meeting in Pennsylvania, emphasizing his dedication to improving governmental operations and reducing unnecessary expenditures.

Musk continues to leverage his platform to advocate for Donald Trump’s campaign, using Dogecoin references to draw interest. However, he has yet to make any substantial moves to support the crypto industry since he stopped accepting Bitcoin for Tesla in 2021 and sold most of its holdings. Tesla recently moved all of its Bitcoin to a new wallet.