With the end of the US election last week, Trump's return to the White House triggered a huge shock in the financial market, and a new round of market conditions in the US stock, US bond, US dollar and even cryptocurrency markets has been set off. After the news that Tesla CEO Musk will lead a new government department, Dogecoin has once again entered the market's field of vision, but the recent volatility, speculation and regulatory risks cannot be ignored.

Musk gets new appointment

According to CCTV News, on November 12 local time, U.S. President-elect Trump announced that American entrepreneurs Musk and Vivek Ramaswamy will jointly lead the proposed "Department of Government Efficiency (D.O.G.E)" after he takes office as president.

Trump said in a statement that the two billionaires will be responsible for cutting "excessive regulation" and "wasteful spending" and restructuring government agencies. The announcement did not provide specific details, such as how much they intend to cut. Previously, Musk has said he wants to cut $2 trillion from the nearly $7 trillion federal budget.

Trump said the new department will work with the White House Budget and Management Office to promote large-scale structural reforms to create an unprecedented entrepreneurial approach to government. U.S. media analysis said it is likely to be an advisory office or committee rather than a real government department that can only be established through an act of Congress.

Musk later posted on social media that the proposed "Ministry of Government Efficiency" will publish its "all actions" online to achieve "maximum transparency." Musk said: "If the public thinks we have cut important expenses or have not cut wasteful expenses, please let us know... We will also set up a ranking to select the stupidest tax expenditures."

Because they are in advisory roles rather than government employees, Musk and Ramaswamy will reportedly not be subject to federal ethics rules designed to prevent conflicts of interest, and their positions are expected to end by July 4, 2026.

Trading mania continues

Musk is one of Trump's biggest supporters and a key figure in the final sprint of the election.

As the Republicans won a landslide victory, investors began to flock to Musk-related concept assets. The first to bear the brunt was Tesla. On Monday, the electric car maker's stock price exceeded $1.1 trillion, reaching more than 50% in the past week, surpassing TSMC to become the seventh largest listed company in the United States. Calculations based on data compiled by S3 Partners show that hedge funds that shorted Tesla between Election Day and the close of last Friday lost at least $5.2 billion on paper. Steve Sosnick, chief strategist at Interactive Brokers, said: "Musk made a huge bet on Trump, and this is the payoff."

Cryptocurrency is also one of the best performing markets after the election. Bitcoin broke through the $90,000 mark yesterday. It has risen by more than 30% since election day, setting a new historical high and pushing the total market value of cryptocurrencies across the market to exceed $3 trillion since 2021.

It is worth noting that the same code as the Department of Government Efficiency (D.O.G.E) and Musk’s repeated mentions on social media have made Dogecoin (DOGE) a new focus in cryptocurrency. CoinCodex data shows that Dogecoin has risen by nearly 10% and more than 100% in the past week, and its total market value has jumped to sixth place.

CoinGlass aggregated trading data and found that Dogecoin open interest soared from $850 million before the election to $1.3 billion. When open interest increases as prices rise, it indicates that new funds are entering the market, indicating a strengthening trend.

However, increased open interest in tokens can lead to increased volatility, especially as contracts approach expiration, when funds may rush to close, roll over, or adjust positions, leading to large price swings.

In addition, investors also need to pay attention to the regulatory risks in the cryptocurrency market. Although Trump is open to digital assets, the differences in regulatory stances of global governments cannot be ignored and may also have a significant impact on the market.

(This article comes from China Business Network)

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