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Dogecoin Surges Following Trump’s Announcement of New Advisory Department

Key Takeaways

In the wake of the recent presidential election, dogecoin’s market capitalization has exceeded that of well-established companies like Ford and General Mills. Elon Musk, the CEO of Tesla, has vocalized his support for dogecoin, having reportedly invested millions into the campaign of President-elect Donald Trump. On Tuesday, Trump proclaimed that Musk, along with Vivek Ramaswamy, would lead an advisory group called the “Department of Government Efficiency,” abbreviated as DOGE.

The value of dogecoin (DOGEUSD, DOGE) experienced a significant increase on Wednesday after the announcement. Reports indicated that the price reached approximately 40 cents, up from 36 cents the previous night, and soared from around 17 cents before the election results were disclosed last Tuesday. This surge has elevated dogecoin’s market value to roughly $60 billion, positioning it as a more valuable asset than prominent companies such as Ford (F), Delta Air Lines (DAL), and General Mills (GIS).

Moreover, other cryptocurrencies, including Bitcoin (BTCUSD), and the stock prices of crypto enterprises such as Coinbase (COIN) have seen upward trends within the past week. Industry leaders are expressing optimism, believing that Trump’s victory will foster a favorable environment for the cryptocurrency sector.

Musk’s Connections to Dogecoin and Trump

Elon Musk’s affinity for dogecoin dates back to its inception, which was inspired by a popular internet meme featuring a Shiba Inu. Musk has actively promoted dogecoin via social media channels and faced allegations in a dismissed lawsuit concerning claims of artificially inflating the cryptocurrency’s value for personal benefit.

In January 2022, Tesla began accepting dogecoin for select purchases through its online store, further legitimizing the currency in commercial transactions.

This year, Musk openly supported Trump’s candidacy, with the political action committee (PAC) he founded reportedly contributing over $200 million to Trump’s election efforts. Apart from his role at Tesla, Musk, who also leads SpaceX and various other ventures, has indicated a desire to assist Trump in cutting $2 trillion from federal spending over the next few years.

What Is the Department of Government Efficiency?

On Tuesday, Trump unveiled that both Musk and entrepreneur Vivek Ramaswamy, a former contender for the Republican presidential nomination, would co-lead the newly formed “Department of Government Efficiency,” presumably alluding to dogecoin.

According to Trump, the department aims to “streamline Government Bureaucracy, eliminate excess regulations, reduce wasteful spending, and revamp Federal Agencies.” The initiative is expected to offer external insights and collaboration with the White House and the Office of Management and Budget (OMB) to facilitate significant structural reforms within the government.

The OMB plays a crucial role in executing the presidential agenda by developing budgets and overseeing the performance of federal agencies.

Details regarding the size and funding of the new department have yet to be clarified by Trump.

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