Elon Musk’s DOGE talk boosts Dogecoin as Bitcoin, Ethereum dip on US election

As the US heads into a pivotal election, Elon Musk has once again managed to send Dogecoin (DOGE) soaring.

The Tesla and SpaceX CEO has been actively advocating for his proposed Department of Government Efficiency (DOGE), on various platforms.

His recent discussion of DOGE, the same name as his favoured memecoin, has driven up Dogecoin’s price even as other major cryptocurrencies, such as Bitcoin and Ethereum, experience declines.

Elon Musk’s DOGE discussion sends Dogecoin up 11%

The Department of Government Efficiency has become a topic of significant interest, both as a potential Trump administration initiative and as a likely tribute to the popular memecoin, Dogecoin (DOGE).

In recent days, Musk has been vocal on X (formerly Twitter), encouraging support for Donald Trump and sharing clips from his appearance on The Joe Rogan Experience podcast.

During a recent podcast, Musk passionately discussed his concerns about the size and inefficiency of the federal bureaucracy, which he believes is overwhelming the nation and pushing it toward financial instability.

He highlighted that the US is on a path to bankruptcy, noting that interest payments on the national debt have now exceeded the country’s defence budget of over $1 trillion annually.

🚨ELON MUSK ON REDUCTION OF GOVERNMENT SPENDING:

“The idea of DOGE is pretty simple. We have a suffocating massive bureaucracy and government spending is bankrupting the country. Our interest payments on national debt now exceed our national defense budget. The defense budget is…

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Musk’s vision for the Department of Government Efficiency (DOGE) would aim to streamline government functions, cutting excessive spending and shrinking the number of federal agencies, which he says have ballooned to an estimated 450.

The discussion quickly gained traction, with Musk’s remarks about government waste resonating with many, especially those sceptical of bureaucratic inefficiencies.

As Musk continues to post about government spending reforms on social media, Dogecoin holders have been quick to respond, interpreting Musk’s advocacy as a positive signal for the meme coin.

Musk’s recent comments propelled Dogecoin to the top daily gainers list on November 5, following a price surge of over 11% and an impressive 55% jump in trading volume, reaching over $3.656 billion.

This spike reversed the token’s earlier decline, contributing to a monthly return of more than 47%.

The immediate reaction to Musk’s statements underscores his enduring influence over the cryptocurrency market.

Over the years, Musk has repeatedly shown his ability to influence Dogecoin’s price, as seen in early 2021, when his tweets alone drove DOGE up by 50%.

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Today, this relationship between Musk’s comments and Dogecoin’s market value is evident as he reiterates his support for the memecoin in the context of political and economic reforms.

Crypto market tumbles as US election opens

As voters prepare to head to the polls following a record-breaking early voting that saw over 76 million people cast their votes, Musk’s vocal support for Trump and his criticisms of the current administration’s handling of the national budget has introduced a unique angle to pre-election conversations, particularly in crypto spaces.

The Tesla CEO’s advocacy for DOGE highlights his vision for a more streamlined government, aiming to address regulatory “bloat” and the expansion of agencies beyond what Congress initially authorized.

However, despite the surge in Dogecoin’s price, the broader cryptocurrency market remains turbulent, with Bitcoin and Ethereum both seeing slight drops.

At press time, Bitcoin (BTC) was down to $68,851 while Ethereum (ETH) was down $2,435.

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