Elon Musk impact on Dogecoin price was muted this week as the meme-inspired cryptocurrency slipped more than 2% to $0.21, despite reports of a $200 million Dogecoin treasury initiative backed by Musk’s attorney Alex Spiro.
The drop marks an unusual break from Dogecoin’s historic pattern of rallying on Musk-related news. Since its debut in 2013, DOGE has frequently surged following the billionaire’s public endorsements, from tweets to televised appearances. But the market’s subdued reaction suggests traders may now be weighing fundamentals over hype.
According to Fortune, Spiro is set to chair a public investment vehicle designed to raise $200 million for Dogecoin. The project is reportedly supported by the House of Doge, the official corporate entity tied to the cryptocurrency. The treasury is expected to acquire DOGE tokens directly, though details about its structure and launch timeline remain limited.
In its official statement, the House of Doge noted: “The Dogecoin treasury represents a long-term commitment to community-driven value creation. By consolidating resources, we aim to ensure Dogecoin’s sustainability and resilience in the broader crypto economy.”
The muted price response stands in contrast to Musk’s track record of moving DOGE markets. His 2021 appearance on Saturday Night Live, where he jokingly called Dogecoin “a hustle,” triggered sharp volatility. More recently, his lawyer Spiro successfully defended him against allegations of market manipulation, with a 2022 lawsuit dismissed in 2024.
For investors, the treasury plan could mark a structural shift. If launched, it would create a steady stream of buying pressure, potentially stabilizing Dogecoin and providing a foundation for long-term growth. On-chain analysts also point to technical patterns hinting at a potential rally, with DOGE consolidating after recent declines.
