Dogecoin has declined by 6% over the past day, lagging behind Bitcoin and Ethereum, which saw drops of 2.4% and 3.2%, respectively.
This downturn follows a statement from Elon Musk clarifying that the meme-inspired cryptocurrency will not be utilized by the US government.
During a political rally in Wisconsin this weekend, Musk responded to public speculation regarding his proposed Department of Government Efficiency—abbreviated as D.O.G.E.—and whether the name might indicate a future role for Dogecoin in federal operations.
”The names are similar, but they’re serving two very different functions.
Honestly, I considered naming it the Government Efficiency Commission, but that sounded incredibly dull.
Then the internet chimed in and suggested we should call it the Department of Government Efficiency, and I thought, the internet is right.”
This clarification comes at a time when Dogecoin is navigating potential ETF launches in the US. Although Musk has been linked to the cultural significance and speculative trends surrounding the cryptocurrency, recent actions have led to a more subdued price reaction to his remarks.
“There are no intentions for the government to utilize Dogecoin, or anything else I am aware of,” Musk stated. “The names might be similar, but honestly, we’re just trying to make the government 15% more efficient.”
Subpar Price Performance Despite Advancements
Dogecoin’s struggles come in spite of various developments in 2025. The SEC is currently reviewing several Dogecoin ETF applications from Bitwise and Grayscale, highlighting increasing institutional interest. Earlier this year, Grayscale also introduced a dedicated Dogecoin Trust, allowing professional investors to access DOGE through traditional financial channels.
However, despite these advancements, Dogecoin’s current price does not reflect the upward momentum observed in other large-cap cryptocurrencies. Throughout March, the token consistently tested support levels around $0.17, with unsuccessful breakouts resulting in sharp intraday downturns. Over the past year, the price has fallen by 22%, while Bitcoin has increased by 17%.
Market Sentiment Detaches from Musk Influence
Musk’s comments at the Wisconsin event indicate a larger trend: Dogecoin’s market sensitivity to Musk-related remarks has diminished.
In previous cycles, even indirect links between Musk and DOGE would trigger price surges. Now, the market seems to demand more tangible progress—like product integration, regulatory advancements, or liquidity events—to maintain upward momentum.
This change is likely connected to the emergence of alternative memecoins on Solana and the subsequent decline in interest. Analysts observing DOGE’s price movements have noted that a heavy reliance on Musk’s influence has left the asset susceptible to sudden shifts in sentiment, which was evident in the recent weekend decline.
Recently, Dogecoin’s price movements have trailed behind those of broader market trends, even as significant digital currencies like Bitcoin and Ethereum have shown relative resilience amid macroeconomic uncertainties involving monetary policy and tariff disruptions.
Future Prospects Depend on Institutional Support
The near-term outlook for Dogecoin remains closely linked to the development of regulatory and infrastructure initiatives. A ruling on the pending ETF applications could serve as a catalyst, particularly if approval coincides with increased institutional investments into the asset class.
However, in the absence of clear indicators regarding utility, adoption, or major platform integration, DOGE may continue to show weakened correlations to Bitcoin’s overall trends. For the moment, the denial of government involvement strips away one layer of speculative potential from Dogecoin’s narrative, emphasizing the need for solid fundamentals over hype based on names.
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