Dogecoin (DOGE) could rebound from its 2024 slump as Elon Musk and President Donald Trump discuss a taxpayer stimulus plan. The proposal, dubbed the “DOGE Dividend,” aims to distribute $5,000 checks using savings from Musk’s Department of Government Efficiency (DOGE). Notably, DOGE has reportedly saved $55 billion already, with Musk projecting up to $2 trillion in long-term efficiencies.
Trump Proposes 20% DOGE Savings Return to Taxpayers
During recent talks, Trump revealed a potential 20% rebate from DOGE’s savings pool. “We’re considering giving 20% back to citizens,” he stated. Polymarket data shows $55 billion saved in just 31 days, which is $359 per taxpayer.
A 20% payout would inject $11 billion into the economy, potentially boosting consumer spending. However, Bloomberg disputes these figures, estimating actual savings at $16 billion.
Legal Hurdles and Inflation Fears Loom Over Plan
Legal experts question the proposal’s feasibility, citing unclear authorisation for such dividends. Additionally, officials fear reigniting inflation, which stabilised near 3.1% in 2024.
Treasury Secretary Scott Bessent acknowledged these concerns but emphasised DOGE’s “ongoing cost-cutting wins.” Meanwhile, crypto analysts warn that political gridlock could delay or dilute the stimulus.
Stimulus Could Mirror 2020’s Crypto Boom
Historical data suggests stimulus checks amplify crypto demand. In 2020, Bitcoin and Dogecoin surged after pandemic-era payouts. James Fishback, a key advisor, argues a DOGE dividend would replicate this effect: “Injecting billions could drive retail investors to crypto.” Elon Musk echoed this, confirming he’ll “discuss the plan with leadership.”
DOGE Price Analysis
Technical charts hint at a Dogecoin rebound. After plunging from $0.48 to $0.20 this year, DOGE stabilised above its March 2023 peak of $0.2287. This is like a “break-and-retest” pattern often preceding rallies. Analysts applying Elliott Wave Theory note DOGE is in Wave 4 (corrective), with Wave 5 (bullish) poised to propel it toward $0.48 a 90% leap.
Market Sentiment Split Amid Volatility
While optimism grows, skepticism persists. DOGE remains 55% below its 2024 high, reflecting meme coins’ broader struggles. Yet, trading volumes spiked 40% post-Trump’s announcement.
What’s Next for Dogecoin?
The DOGE Dividend’s fate hinges on political consensus and accurate savings figures. If approved, the stimulus could ignite a crypto bull run. Conversely, delays or legal challenges may prolong DOGE’s slump. Traders now watch for Musk’s or Trump’s next move, which will be a potential tipping point for the meme coin’s trajectory.
