Dogecoin rebounds as Musk plans to reduce involvement in D.O.G.E.

Dogecoin is experiencing a recovery following Elon Musk’s announcement of stepping back from his involvement with the Department of Government Efficiency (D.O.G.E.). The number of Dogecoin millionaire wallet addresses has seen a significant increase by 14.33% since April 8, marking a turnaround from a decline in earlier months.

The decline in the number of Dogecoin millionaires can be attributed to Musk’s leadership of the D.O.G.E. federal spending oversight body. Data from Finbold research indicates a 40% drop in the number of Dogecoin millionaires from his first day in the job to March 31. However, on April 8, as the possibility of Musk’s exit from government became apparent, the total number of DOGE millionaire addresses hit a low of 1,277. By April 25, this had risen to 1,460, marking a notable increase.

Wallets holding between $1 million and $9.99 million worth of Dogecoin also saw a rise of 13.03% from 1,082 to 1,223, and those with more than $10 million experienced an even greater increase of 21.54% from 195 to 237 within the same time frame.

The events of April 8 proved crucial in various ways, as it marked a turning point for Dogecoin. Controversies surrounding the alleged AI surveillance of federal employees’ political sentiments by the Department of Government Efficiency and escalating tensions between Musk and Trump’s advisor, Pete Navarro, added to the challenges facing the cryptocurrency.

The impact of Musk’s political engagements extends beyond Dogecoin, with Tesla experiencing a significant sales drop in Europe during Q1 2025, attributed to Musk’s controversies. However, while there is a correlation between Musk’s decision to step back from government activities and the increase in Dogecoin millionaire addresses, other factors like the rise in DOGE’s price and overall market conditions must be considered.

Jordan Major, a co-author of the Finbold research, highlights the complexity of the dynamics around Dogecoin and its relationship with Elon Musk’s influence. The recent price rally of Dogecoin has outpaced the growth in millionaire wallets, indicating broader market forces at play. While Musk’s decision to reduce involvement in D.O.G.E. may have contributed to the rise in millionaire addresses, it is essential to recognize the influence of other factors like shifting investor sentiment and overall market trends.

After the alleged dispute between Musk and Navarro marked a low point for Dogecoin, the cryptocurrency has seen positive growth since April 8. The rebound in the number of Dogecoin millionaire addresses signifies a potential shift in investor sentiment following Musk’s decision to step back from his government-related activities. The overall market conditions and the recent rally of Dogecoin suggest that the cryptocurrency’s recovery is influenced by a combination of factors beyond Musk’s involvement, indicating a more complex landscape for investors and traders alike.