Trump’s New Department Stirs Dogecoin Market Unrest

Donald Trump's New Department Sparks Mixed Reactions in Cryptocurrency Market

Former President Donald Trump's recent inauguration announcement of the New Department of Government Efficiency (D.O.G.E.) has stirred varied reactions within the cryptocurrency community, particularly concerning the impact on Dogecoin (DOGE) and its parody counterparts.

Inaugural Announcement and Department's Purpose

During his inaugural speech, Trump unveiled plans for the new department, emphasizing its mission to enhance federal government efficiency and effectiveness. An executive order was issued to establish the department formally.

Market Response and Dogecoin's Performance

Upon the announcement, DOGE experienced an initial 5% decline, but partially recovered its losses. The CoinDesk 20 index dropped nearly 5%, with Bitcoin (BTC) also witnessing a 3% decline.

Elon Musk's Role and Department's Compliance

The department will be led by prominent technocrat Elon Musk. Initially, the department's website lacked any reference to Dogecoin. However, it later displayed the DOGE logo, acknowledging Musk's previous suggestion of utilizing the token for government efficiency.

Concerns about the department's legal compliance have emerged. The National Security Counselors suggest that its formation may violate the Federal Advisory Committee Act of 1972, citing its ambiguous legal framework. Additionally, Public Citizen seeks clarity on the department's operational details.

Department's Impact and Parody Tokens

The department's legal authority to enforce its initiatives remains uncertain. DOGE's future performance may hinge on the actions of this new entity, and parody tokens have gained traction in a declining market, highlighting the prevailing skepticism among investors.

Conclusion

Despite the initial announcement, the anticipated positive impact on Dogecoin's market has not materialized. As the market continues to fluctuate, attention has shifted towards parody DOGE tokens. The future trajectory of DOGE and the cryptocurrency market will depend on the department's upcoming strategies under Musk's leadership.