Latest news with #Dogecoin-related
Yahoo
03-06-2025
- Business
- Yahoo
Elon Musk Has Left the White House -- Should Dogecoin Investors Run for the Hills?
Elon Musk has reached the end of his 130-day tenure at the White House, which is the annual limit for "special government employees." Musk was leading the Department of Government Efficiency (or DOGE for short, which is a reference to Dogecoin). Musk has supported Dogecoin since 2019, but the meme token has struggled to generate sustained upside. 10 stocks we like better than Dogecoin › Dogecoin (CRYPTO: DOGE) was founded as a joke by two friends in 2013 who used the famous "Doge" meme as inspiration. Little did they know, it would go on to reach a peak of $0.73 per token in 2021, which translated to an eye-popping market capitalization of almost $90 billion. A lot of that value was created on the back of Elon Musk's support, which has been ongoing since 2019. In fact, Dogecoin's most recent rally was sparked by Musk's involvement in the Trump administration, where he temporarily ran an external government agency with a name that references the meme token. But Musk's time at the White House has officially come to an end, so investors might be wondering what to do next. Is Dogecoin still a buy, or is this a sure sign to run for the hills? Between 2019 and 2021, Musk regularly shared Dogecoin-related memes on social media and participated in friendly banter with other enthusiasts. Investors started to think he had a plan to create real value for the meme token, and that speculation reached a fever pitch in the lead-up to his appearance on Saturday Night Live. During the show on May 8, 2021, Musk participated in a Dogecoin-themed comedy skit, which ended with him calling the meme token a "hustle." While it was a light-hearted joke, investors started to realize that Musk had no concrete plans to create value outside of his support on social media, so Dogecoin peaked at $0.73 per token that very night. It plunged over the next 12 months, losing more than 90% of its value by mid-2022. It stayed dormant during 2023 and for most of 2024, until the U.S. presidential election. Musk threw his cash and his influence behind Donald Trump, who campaigned on a series of pro-crypto policies, and Dogecoin soared (along with most cryptocurrencies) when Trump eventually won the presidency. A short time later, Trump announced plans to appoint Musk to run an external government agency tasked with reducing America's national debt by slashing spending. Musk named the agency the Department of Government Efficiency, or DOGE for short, which was a clear reference to his favorite cryptocurrency. However, to this day, Dogecoin has played no actual role in the agency, so its post-election rally was purely speculative. Musk's time at the White House has now come to an end. He was classified as a "special government employee," which means he can only work within the administration for 130 days per year -- and Jan. 20 (Trump's Inauguration Day) to May 30 was exactly 130 days. Dogecoin has plummeted by 59% from its recent 52-week high, but Elon Musk's departure from the DOGE agency isn't the biggest reason. The meme token has struggled to find a use case in the real world, and if consumers, businesses, and investors don't have a tangible reason to own it, then it's impossible to create sustainable value. According to Cryptwerk, just 2,096 businesses around the world accept Dogecoin as payment for goods and services. If consumers can't spend Dogecoin at their favorite stores, then they have no reason to buy it. Businesses probably won't warm up to the meme token anytime soon, because its extreme volatility would make cash-flow management a nightmare. Dogecoin also has a supply issue. There are 149.5 billion tokens in circulation as of this writing, and although there is a cap on how many more can be "mined" each year, there is no end date. In other words, new tokens will enter the market until the end of time. I've never seen an investment-grade asset with an unlimited supply that rises in value over the long term. Dogecoin's post-election rally peaked at $0.47, which was well below its 2021 high of $0.73. That suggests investors were less willing to buy into the Musk-driven hype this time around. But the meme token is now trading at just $0.19, and there could still be plenty of room to fall if history is any guide. Dogecoin bottomed at around $0.06 in 2022, which might be the level to watch. It implies there could be 68% downside from the current price, and with Musk now out of the White House and no improvements to the meme token's fundamentals, that might be the path of least resistance. As a result, I think it might be time to abandon Dogecoin and run for the hills. Before you buy stock in Dogecoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dogecoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Elon Musk Has Left the White House -- Should Dogecoin Investors Run for the Hills? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-02-2025
- Business
- Yahoo
Dogecoin's Price Drops 40% in 3 Months as Musk-Trump Alliance Faces Challenges
Dogecoin's price has dropped significantly in recent months, returning to pre-election levels, despite initial gains following Donald Trump's 2024 presidential victory. The cryptocurrency's rise came as the newly inaugurated president introduced the Department of Government Efficiency (DOGE) in January 2025. This department, focused on modernizing federal technology and streamlining government operations, has given Dogecoin a significant platform. Elon Musk, a vocal advocate for the coin, played a key role in its rise after Trump's win. Following the November 2024 election, Dogecoin saw its price climb from around $0.15 to over $0.47, pushing its market cap above $60 billion. Musk's involvement with the cryptocurrency has been extensive; he has been a prominent supporter for years, with his social media presence and public endorsements contributing to Dogecoin's previous highs, such as the all-time peak of $0.73 in 2021. Despite its initial rise, Dogecoin has lost momentum, falling by more than 40% over the last three months. As of writing, it trades at around $0.207. However, the coin remains among the top 10 largest cryptocurrencies by market capitalization, standing at $30.6 billion. Part of this decline is attributed to the cooling of investor enthusiasm, as the initial post-election euphoria has faded. The Department of Government Efficiency, designed to implement Trump's "DOGE Agenda," aims to maximize governmental productivity through technological modernization, and claims savings of $65 billion as of late February 2025. The cryptocurrency could see renewed interest, especially with the rise of exchange-traded funds (ETFs). In January 2025, Bitwise filed with the SEC for a Dogecoin ETF, and Grayscale Investments launched the Dogecoin Trust. Analysts estimate a 75% chance that Dogecoin-related products will be approved in 2025, which could further boost its visibility in the market. Meanwhile, Tesla, another of Musk's ventures, has faced struggles. The company's stock has fallen 30% since the 2024 election, and its global electric vehicle sales have significantly declined. These challenges, along with Musk's growing association with Trump, have led to some investors pulling back. This was highlighted during a February 2025 interview with Trump and Musk on Fox News, which drew attention to their increasingly visible political alliance. Despite these setbacks, Dogecoin remains a focus for Musk, with the DOGE still pushing for broader adoption of the coin within federal operations. Whether this continued support will lead to another surge in value remains to be seen.
