DOGE Price Fumbles as Elon Musk says ‘No Plans’ On Using Dogecoin

Elon Musk's statement that the U.S. government has no plans to use Dogecoin (DOGE) has caused the cryptocurrency's price to drop over 5%. Investor hopes for continued price increases were dashed following Musk's comments at a Wisconsin town hall. He explicitly stated that, to his knowledge, there are no plans for the Department of Government Efficiency (D.O.G.E.) to integrate Dogecoin into government operations. This announcement led to a swift price decline, with DOGE falling over 5.3% within hours. At the time of writing, DOGE is trading near $0.1658, having dipped as low as $0.1605 from a daily high of $0.1695.

Dogecoin (DOGE) Price – Source: Coinmarketcap

The speculation regarding government adoption stemmed from a February incident where the official D.O.G.E. website displayed the Dogecoin Shiba Inu logo. This fueled excitement among investors, who interpreted it as a potential link between the agency and the cryptocurrency. Musk's previous suggestions about the potential use of blockchain technology in government, including the possibility of the U.S. Treasury using blockchain for transactions, further contributed to the speculation.

However, Musk clarified over the weekend that there is no connection between Dogecoin and the Department of Government Efficiency. He emphasized the similarity in names but highlighted their distinct functions, effectively quashing hopes of Dogecoin's involvement in the agency's operations.