Elon Musk’s recent comments about Dogecoin sent the cryptocurrency’s price tumbling. The billionaire’s clarification about the Department of Government Efficiency (D.O.G.E.) dashed hopes among many Dogecoin investors.
Musk Separates Dogecoin from Government Agency
During a town hall, Musk clarified that the D.O.G.E. agency, despite sharing an acronym with Dogecoin, has absolutely no connection to the cryptocurrency. He explained the agency’s focus is on improving US government efficiency, not integrating cryptocurrencies. This statement put an end to speculation that the government might officially adopt Dogecoin, fueled by the agency’s website featuring the Dogecoin Shiba Inu logo earlier this year.
The Hype and the Fall
The initial excitement surrounding a potential government link had briefly boosted Dogecoin’s price. Many investors believed a connection could lead to increased real-world use cases and potentially push DOGE above its all-time high. Musk’s clarification shattered those hopes.
Dogecoin Price Takes a Hit
Following Musk’s announcement, Dogecoin’s price dropped significantly. At the time of writing, it’s down around 15% in the past week, trading at roughly $0.168. Social media chatter reflects the disappointment of investors who had bet on the government connection.
The Future of Dogecoin
While Musk’s latest statement was a letdown for some, his overall support for Dogecoin seems unchanged. He’s previously called it the “people’s cryptocurrency.” However, without new developments or a broader crypto market upswing, Dogecoin’s price could continue to fall, potentially testing support levels around $0.15.
