Musk’s $2 Trillion Budget Cut Proposal Sparks 6% DOGE Rally – Here’s Why

The post Musk’s $2 Trillion Budget Cut Proposal Sparks 6% DOGE Rally – Here’s Why appeared first on Coinpedia Fintech News

Custodia Bank CEO Caitlin Long is calling on Elon Musk to take action on his bold idea to cut $2 trillion from the U.S. federal budget. Musk shared this proposal during a rally with Donald Trump and other speakers at Madison Square Garden in New York City. After Musk’s announcement, Dogecoin’s (DOGE) price jumped by 6%, raising hopes among fans that it could soon hit the $1 mark.

But what does this mean for the future of Dogecoin and the broader cryptocurrency market? Join us as we explore Musk’s vision, Long’s insights, and the impact on DOGE.

Slamming Government Spending

At the rally, Musk criticized government spending, claiming that around $6.5 trillion has been wasted under President Biden and Vice President Harris. He passionately told the crowd, “Your money is being wasted. We’re going to get the government off your back and out of your pocket.” His strong words struck a chord with many attendees.

At first blush you’d think so, but entitlement spending (Social Security, Medicare, etc) is such a big % of the total that the two questions don’t actually go hand in hand. If they really do cut $2trn of the $6.5trn federal budget, that’d likely be a >50% cut in federal employees

— Caitlin Long (@CaitlinLong_) October 28, 2024

Musk also shared his exciting plan to create a new group called the “Department of Government Efficiency,” or DOGE. This name is a playful nod to Dogecoin, the cryptocurrency that Musk supports. His announcement has drawn more attention to Dogecoin.

Backing Musk’s vision, Donald Trump said that if he were to become president again, he would appoint Musk to lead the new DOGE initiative.

Caitlin Long’s Thoughts on the DOGE Initiative

Following these developments, Caitlin Long shared her views on what the DOGE initiative should focus on. In a tweet, she emphasized the need for the proposed team—Musk and Howard Lutnick—to consider regulations affecting federal workers and businesses.

Long also pointed out that “the regulatory pressures are quite frightening,” noting that any cuts to government spending could pose risks for Democrats as they try to keep their Senate majority in the upcoming 2026 elections.

Indeed they do. But the Dept of Govt Efficiency (#DOGE) would need to move fast bc the Senate math is unfavorable to the GOP in 2026. If the DOGE team really plans to do something big so it has a chance of being durable & not reversed by the next president, it’d need to be fast.

— Caitlin Long (@CaitlinLong_) October 28, 2024

Long also raised concerns about potential economic stagnation resulting from the proposed spending cuts. She believes the government is mistakenly assessing the impact of increased spending relative to GDP. “That’s the wrong metric, and they’ll need to explain why,” she asserted.

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Dogecoin Price Analysis

Amid these discussions, Dogecoin’s price has surged by over 6% in the last 24 hours, currently trading at $0.15. The market shows Dogecoin maintaining strong support levels while testing resistance at $0.165. If DOGE can break above this level, it may pave the way for higher price targets.

Many in the crypto community are hopeful that DOGE could reach $1, especially if Trump wins the next election.

Market data shows mixed signals in derivatives trading, with open interest down by 9.65% and trading volume up by 24.2%. These changes suggest that market participants are actively repositioning themselves in response to recent events.

With Elon Musk leading the DOGE initiative, the future looks both exciting and unpredictable—stay tuned!