The capital market has withstanded considerable turbulence over the past few months. Through the market closure on April 4, Dow Jones Industry Average, S&P 500 and Nasdaq Composite have fallen by 10%, 14% and 19% respectively so far this year. The main perpetrators are rooted in emotional responses to new tariff policies and how they affect the broader macroeconomics.
Generally speaking, when investors flee the stock market, they may start looking at alternative investments such as commodities (such as gold) or cryptocurrency. One cryptocurrency has been increasingly landing on Dogecoin’s investor radar for the past few months (Cryptography: Doge).
Let’s explore what’s fueling new interest in Dogecoin in the first place and the recent commentary from Tesla CEO Elon Musk, whether this is a good time to invest in popular cryptocurrencies.
The chart below shows the changes in Dogecoin prices over the past year. DogeCoin prices fell from January to October 2024. However, a surge began in November, and Dogecoin prices had risen almost five times by December.
DogeCoin price data by YCHARTS
The rising prices of dogcoin late last year coincided with Donald Trump’s re-election. Now you may be wondering if Trump has returned to the White House. After all, what does one thing have to do with the other?
During the campaign, Trump consistently said he was concerned about rising federal budgets and US debt levels. These topics resonated with Musk, so serial entrepreneurs emerged as Trump’s main proxy and began to spend quite a bit of time with GOP candidates. In the final stages of the campaign, Musk and Trump began to promote the idea of creating new programs that focus on identifying useless federal spending.
What is the name of this initiative? Government Efficiency Bureau, or Doge.
Certainly, Trump won on November 5th, and then Dogecoin prices went in a short period of month. Below we dig deeper into what fueled the excitement around Dogecoin and explore why we think its ongoing sale will continue.
Image source: Getty Images.
Like many meme coins, the rise in Dogecoin prices is not actually rooted in anything specific about the cryptocurrency itself. Rather, the online pumper created a hype story that Musk’s leadership in Doge could somehow lead to something positive for Dogecoin. This idea may seem completely overblown, but it actually had (a kind of) benefits. Keep in mind that Musk himself has voiced his interest in Dogecoin in the past – but always does so with a joke.
The story continues
As the charts in the previous section clearly show, Dogecoin prices have been declining throughout 2025. For me, this shows that enthusiasm about cryptocurrency is waning. And in the video below, with some choice words from Musk, I think Dogecoin’s best days are very often in the rearview mirror.
In this recent town hall speech, Musk explained how Doge’s actual name turned out. He said he didn’t come up with a name himself, but agreed to it if he noticed the comical irony that the acronym Doge coincided with the ticker symbol of Dogecoin.
Most importantly, he went on to say that the US government has no “plan” to use Dogecoin. He immediately followed the comment “as far as I know,” but I saw it as an unusual example that Musk carefully demonstrates. The Trump administration has shown enthusiasm for the crypto industry. Much of the supportive rhetoric and behavior is centered around Bitcoin, XRP, and other cryptocurrencies with real utility.
Given the unstable prices of Dogecoin, some investors could have made some money if they were lucky before it started rolling. But luck is not a healthy basis for investment.
After all, Dogecoin is not a wise option for long-term investors looking to build wealth. Rather, it is still a very unstable asset in the highly speculative sector.
I don’t consider Dogecoin to be a good investment. I think Musk’s commentary from the video will provide the clarity you need.
Consider this before purchasing inventory with Dogecoin.
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Adam Spatacco has a position at Tesla. Motley Fool has and recommends Bitcoin, Tesla and XRP positions. Motley Fools have a disclosure policy.
Do you buy Dogecoin now? Elon Musk’s two words give investors a clear answer. Originally published by The Motley Fool
