The recent announcement of billionaire Elon Musk taking the helm of a new government agency, the Department of Government Efficiency (DOGE), has sparked a significant surge in the price of Dogecoin DOGE/USD.

What Happened: Last week President-elect Donald Trump unveiled that Musk and entrepreneur Vivek Ramaswamy would lead the new department, with a mission to cut government spending and regulations. Following this revelation, Dogecoin’s price hit a yearly high of $0.39.

Coinbase CEO Brian Armstrong voiced his support for the DOGE agency on X on Sunday, viewing it as an opportunity to enhance economic freedom in the U.S. He proposed constitutional amendments to cap government spending at 10% of the GDP.

Armstrong further suggested the creation of a sovereign wealth fund, where every U.S. citizen would own a share, and budget surpluses would yield dividends to the shareholders.

Also Read: Dogecoin’s Active Users On The Rise, Will This Impact DOGE Price?

Why It Matters: Despite sharing the same acronym, the DOGE government department is not associated with Dogecoin. Nevertheless, the announcement triggered a substantial rise in the price of the cryptocurrency.

Musk, who has faced allegations of manipulating Dogecoin’s price in the past, successfully defended himself in a 2022 lawsuit related to the matter.

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