TL;DR
- Elon Musk officially denied that the U.S. government has any plans to use Dogecoin in an official capacity, clarifying at a public event that there’s no connection between the cryptocurrency and the Department of Government Efficiency (DOGE).
- Dogecoin’s price dropped more than 3% following the statement, though the dip is also part of a broader bearish trend affecting Bitcoin and other major altcoins.
- Despite the drop, Dogecoin is holding key technical support levels, and many crypto enthusiasts still believe in its potential recovery driven by market cycles and long-term interest.
During a speech at the “America PAC Town Hall” in Green Bay, Wisconsin, Elon Musk was clear and straightforward:
“There are no plans for the government to use Dogecoin or anything like that.”
With this statement, he ended weeks of speculation about a potential government use of DOGE through the Department of Government Efficiency, a newly established agency aimed at optimizing public spending.
Musk, known for his quirky and internet-driven style, explained that the department’s name came from an online suggestion, not from any intended reference to the cryptocurrency.
“I was going to call it the Government Efficiency Commission, but that’s super boring. Then the internet said it should be the Department of Government Efficiency. I was like, the internet is right,”
he said with a grin.
Speculation had been building since February, when the department’s official website briefly displayed the iconic Shiba Inu mascot. That moment triggered a 14% surge in DOGE’s price, pushing its market cap past $58 billion.
This kind of market reaction highlights how closely the crypto world watches public figures like Musk. Any comment, whether casual or official, can create shockwaves across the digital asset space. In this case, the impact was negative, but it also reflects the power that decentralized assets hold when it comes to public attention and collective sentiment. The community is becoming increasingly savvy at interpreting even the subtlest cues, which keeps volatility high, but also opens doors for bold investors and passionate holders.
Currently, DOGE is trading at $0.1636, with a 3.35% drop in the last 24 hours and a market capitalization of $24.32 billion.
What’s Next for Dogecoin in the Short Term?
Although Musk’s statement put an end to government-related hopes, Dogecoin is still holding strong around the $0.15 support level. Despite the recent pullback, DOGE hasn’t broken through critical zones, and if history repeats itself, it could recover in the coming months.
With a 77% drop from its all-time high of $0.73, many in the crypto community see this as a classic accumulation opportunity. Resistance levels to watch are around $0.19 and $0.23. If DOGE breaks through these, analysts predict a move toward $0.30.
Meanwhile, crypto enthusiasts remain hopeful that, even if the government won’t adopt DOGE today, its community-driven popularity and potential for real-world adoption continue to grow.
