Dogecoin rises over 5% after Elon Musk threatens federal action against DOGE haters

Dogecoin (DOGE) saw a notable rise of over 5% following a series of posts by Elon Musk on February 4, where he threatened federal action against Reddit users who had targeted employees of the new Department of Government Efficiency (DOGE), a department led by Musk himself. Musk’s intervention and the public support for his department seem to have generated significant buzz, which contributed to the uptick in Dogecoin’s value.

The incident began when Musk responded to a post from the Reddit account Reddit Lies, which exposed multiple anonymous Reddit users who had posted violent threats against employees of the Musk-led department. The threats included calls for the execution of these employees and attempts to track down their personal information, such as where they live. In response, Musk shared the post with his followers, emphasizing that those responsible had broken the law.

Soon after, Musk followed up with a post that included a statement from Edward R. Martin Jr., the U.S. Attorney for the District of Columbia. Martin confirmed that his team had initiated an investigation into the situation, reviewing evidence related to the threats targeting DOGE employees. He also mentioned that the FBI and other law enforcement agencies were involved and that prosecutors were preparing for action. Musk, not missing the chance to make his sentiment known, captioned the post with “Don’t mess with DOGE.”

This series of events, particularly the high-profile involvement of Musk and the promise of legal action, seemed to generate significant attention around Dogecoin, driving the price of the meme coin up by 5% within a 24-hour period. According to data from crypto.news, Dogecoin’s price reached $0.27 at the time of the rise, and its market cap reached $40 billion. Despite this positive price movement, DOGE’s trading volume dropped by over 43% during the same period, falling to $6 billion.

This surge came at an interesting time, as Dogecoin has gained a lot of attention over the past few months, with Musk’s involvement in the Department of Government Efficiency making the cryptocurrency even more of a focal point. The DOGE department, as it’s often referred to, is part of an initiative by Musk and his team to streamline federal operations, with the name itself being a playful reference to Dogecoin’s ticker symbol. The initiative was officially announced in November 2024, and Musk’s leadership role further reinforces his connection with the cryptocurrency.

The situation also involved Vivek Ramaswamy, a politician who had initially been chosen to co-lead the department alongside Musk. However, Ramaswamy stepped down from the role on January 21, 2025, leaving Musk to continue leading the department and, by extension, continuing to shape the public perception and the financial environment surrounding Dogecoin.

The 5% rise in DOGE’s price, although notable, came with a dip in its trading activity, which suggests that while news of Musk’s actions might have sparked a temporary rally in Dogecoin, the broader market sentiment and trading volume remain somewhat subdued. Nonetheless, with Musk’s strong social media influence and continued involvement in the government initiative, Dogecoin will likely continue to be in the spotlight, with potential for further volatility depending on future developments.