Dogecoin could reach the $1 mark if it maintains its current upward momentum, particularly in light of new developments in Donald Trump’s inauguration preparations. Trump has recently appointed Elon Musk and Vivek Ramaswamy to lead the newly established Department of Government Efficiency, abbreviated D.O.G.E.
The popular meme token has flipped Ford, Adidas, and Roblox in market capitalization.
The Power of Meme
In a statement shared on Tuesday, the “D.O.G.E.” initiative will target restructuring federal agencies, focusing on slashing wasteful expenditures and improving operational efficiency, which Trump says is “essential to the ‘Save America’ Movement.”
The department plans to adopt Musk’s entrepreneurial mindset to enhance federal agencies’ ability to serve the public.
“It will become, potentially, “The Manhattan Project” of our time. Republican politicians have dreamed about the objectives of “DOGE” for a very long time,” according to Trump’s statement.
DOGE will work closely with the White House and the Office of Management and Budget (OMB) to implement large-scale structural reforms. It will also run outside traditional federal oversight rules.
In a statement following the announcement, Musk, a known Dogecoin fan and a prominent supporter of Trump’s presidential campaign, affirmed that all the actions made by the DOGE will be publicly available online.
He also encouraged the public to provide feedback on government spending decisions. If citizens believe that important programs are being cut or wasteful spending is continuing, they can directly communicate their concerns to the department.
Will it Work?
The initiative is set to target waste and fraud within the estimated $6.5 trillion in annual government spending. Musk previously proposed cutting $2 trillion from federal spending.
He also offered to help establish a “government efficiency commission” to cut U.S. government overspending during a live discussion with Trump. The CEO of Tesla said that as the government spends more than it collects, it can lead to inflation if the money supply outpaces the growth of goods and services.
The work is expected to wrap up by July 4, 2026, the 250th anniversary of the Declaration of Independence. While the establishment of DOGE has gained support from many, critics have raised concerns about the feasibility of the drastic budget cuts, as well as their potential impacts on essential government services and programs.
Still, for Dogecoin supporters, DOGE is a positive catalyst. Musk intentionally named the new department as a humorous nod to Dogecoin, the cryptocurrency he has famously supported.
Dogecoin has seen a major price rally since Trump’s election win. The meme token recorded gains of over 250% in the last month, surpassing $0.41, its highest level in three years.
Its market value, currently standing at approximately $53 billion, has flipped Ripple’s XRP token, now ranking as the top sixth cryptocurrency. Dogecoin is now bigger than several established entities like Ford, Adidas, and Roblox.
Many investors are setting their sights on a $1 price target, with expectations that Musk’s association with Dogecoin could drive prices upward. Dogecoin has previously reached higher price levels during market surges, particularly in 2021, when it saw major gains driven by social media trends and endorsements from Musk.
The positive sentiment across the cryptocurrency markets is also anticipated to maintain bullish momentum. As with most altcoins, Dogecoin’s price movement is also influenced by Bitcoin. Bitcoin hit a record high of $90,000 on Tuesday, and it’s now trading at around $86,900, up 17% in the last seven days.
It’s also important to note that approximately 98% of DOGE’s supply is currently in profit, which means potential profit-takings might play out at some point in the future. Historically, when a high percentage of holders are profitable, it can signal a market top, which later leads to price corrections.
As always – stay safe out there in the middle of the huge rally.
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