📌 Background of Musk's authority and political influence
On July 5, 2025, Elon Musk announced via platform X the establishment of a new political party called America Party, carrying the slogan "Restoring Freedom to Americans" and focusing on reducing the government deficit, national debt, and cutting taxes and excessive government spending.
This announcement followed his criticism of the "Big Beautiful Bill" passed by Republicans, asserting that it increases the deficit by billions of dollars and is likely to undermine support for clean energy, which harms the interests of companies like Tesla.
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🎯 The relationship between Musk's party and the "restructuring" of DOGE
The codename "DOGE" was previously an abbreviation for Department of Government Efficiency, a government initiative founded by Musk during Trump’s presidency to reduce government bureaucracy, overseeing extensive layoffs and restructuring during the first 4 months of 2025.
These actions led to legal battles and protests, as Musk's "fast transformation method" challenged the traditional administrative system, leaving a negative impact on Tesla's stock and Musk's managerial standing.
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🚀 The impact of politics on Dogecoin's price
Although "DOGE" was originally a government designation, Dogecoin (the famous meme currency) is closely associated with Musk, who has always used his tweets to direct market movements:
A simple tweet in 2020 raised the currency by ~20%.
Public support for its potential use as a payment method at Tesla in 2021 led to increases exceeding 20%.
However, when Musk led government DOGE strategies, the currency faced negativity, as his focus on political actions and government business led to a decline in investor confidence, reflected in the contraction of cryptocurrency markets overall and Tesla's stock specifically.
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🧭 Analysis: How does the "America Party" reflect on Dogecoin?
1. Media Momentum – The party announcement enhances the name "DOGE" in popular trading and may re-link Dogecoin with Musk's news package and the momentum of the "tech right," possibly boosting speculative interest.
2. Regulatory Concerns – The merger of politics and finance may increase regulatory pressures, enhancing investor fears and creating price volatility dependent on market reactions to the party's policies.
3. Politicization of Currency – If some view Dogecoin as a political symbol for a specific party, it might alienate other audiences, limiting its adoption as an alternative currency or independent trading tool.
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🔍 Summary
The announcement of America Party brings attention back to the name "DOGE," but it is accompanied by expected volatility in the Dogecoin market, due to its emotional connection with Musk and the potential for it to be transformed into a political symbol.
In the short term, Dogecoin is expected to experience volatile waves due to news related to the party's decisions and Musk's policies.
In the long term, if oversight increases or regulatory frameworks targeting the politicization of cryptocurrencies emerge, trust may decline and prices could suffer. However, on the other hand, the momentum of popular and political support for Musk may renew investor interest if the party and currency are marketed together positively.
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