Trump appoints Musk to lead the "Department of Government Efficiency" Dogecoin violently surges

On Tuesday evening local time, the US President-elect Donald Trump officially announced the establishment of the Department of Government Efficiency (DOGE), and Dogecoin continued to rise. In a statement, Trump said that Tesla, Inc. (TSLA.US) CEO Elon Musk and former Republican presidential candidate and co-founder of Strive Asset Management, Vivek Ramaswamy, will lead the department. They "will pave the way for this administration to dismantle government bureaucracy, cut unnecessary regulations, reduce wasteful spending, and restructure federal agencies." Dogecoin surged nearly 20%. The token has been one of the biggest winners in the post-election rebound, rising 153% since election day, while Bitcoin rose by 30% in the same period. This week, Dogecoin surpassed XRP token to become the sixth largest cryptocurrency by market value. Dogecoin belongs to the category of MemeCoins. When meme coin volatility increases, it typically indicates that retail investors are participating and are interested in further speculation on the risk curve. Meme coins are seen as a gauge of retail interest in cryptocurrencies and risk preferences. Trump originally proposed the idea of establishing an efficiency commission in September. Since then, Musk has referred to the commission as the "Department of Government Efficiency" or "D.O.G.E." on his social media platform X. Musk has previously referred to himself as the "Dogefather" and openly commented on meme coins influencing their prices. After Musk's support and continued hype on social media, Dogecoin gained attention in 2021, becoming a significant catalyst for the coin. In May of that year, Musk's posts drove Dogecoin to a historic high of 67 cents per coin. Despite appearing on Saturday Night Live (SNL) and calling Dogecoin a "hustle," its price still plummeted. Other parts of the crypto market are in a standstill in the post-election rebound. Bitcoin's trading price remains stable around $87,000, after briefly touching $90,000 earlier.