Is Dogecoin Benefitting from Elon Musk’s Political Career?
Elon Musk has always been a strong proponent of the meme token Dogecoin (DOGE), and his recent political placement in Trump’s cabinet might have a tremendous effect on DOGE.
Currently, Dogecoin’s price is down 1.85% to $0.1688 (DOGE/USD), and it has fallen nearly 19% in the last week. The coin is back to where it was a year ago, although it has a healthy spike in November of 2024 during the U.S. elections. When Musk was talked about to join Trump’s cabinet, the price of Dogecoin skyrocketed, and it stayed high for a while, but the post-election slump has been tough on this coin and the cryptocurrency market.
There was a second spike around January 20th, when Trump formed the Department of Government Efficiency and put Musk in charge of it. The slyly named new agency shares a shorthand name with the cryptocurrency Dogecoin, but even that was not enough to keep Dogecoin afloat in recent months. Like all memecoins, DOGE needs constant support from the popular media or needs to have some sort of intrinsic value or functionality that makes it useful. It simply does not have either for now.
What Could Help Lift Dogecoin
A couple of the top memecoins have seen low prices lately, including Dogecoin and Shiba Inu (SHIB). They are both low at the moment, and that could be a key time for investors to buy in. Digoxin is expected to climb much higher this year, especially if Trump puts some of his proposed cryptocracy legislation into effect that should make it easier for crypto traders to operate.
His pro-cryptocurrency stance has mostly resulted in a Bitcoin fund for the government so far and Trump’s own cryptocurrency token, and these moves have not helped Dogecoins directly. If Musk or Trump were to make policy changes that benefit cryptocurrency as a whole, we should see Dogecoin spike again. Political analysts do expect those moves to happen in the near future, but there is no telling when just yet, especially with Trump so focused on tariffs for the moment.
Musk has been responsible for some of Dogecoin’s biggest movements since the coin was released, and he will likely continue to be, but it could be time for DOGE to find support outside the controversial figure.
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