Bull doge! Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE

NEW YORK (AP) — Wow, much bull market.

Dogecoin, the cryptocurrency whose mascot is a super-cute dog that muses things like “much wow,” has been surging in value since Donald Trump won the presidential election last week. It's hitting the afterburners now, after Trump named Tesla's Elon Musk as one of the heads of a new “Department of Government Efficiency,” which is not a government agency but does have the acronym DOGE.

All this makes sense and is maybe humorous for anyone who’s chronically online. For others, here's some explanation about what's going on:

What is dogecoin?

It's a cryptocurrency, whose value rises and falls against the U.S. dollar based on however much people will pay for it.

At first, it was seen as a joke. But over time, dogecoin has amassed a group of fans who have periodically sent its price soaring. Like other cryptocurrencies, supporters say it could be used to buy and sell things on the internet without having to worry about a central bank or government affecting how many are in circulation.

How much has dogecoin climbed?

One dogecoin — which is pronounced dohj-coin — was worth less than 16 cents just before Election Day. It's since more than doubled to roughly 41.5 cents, as of midday Wednesday, according to CoinDesk.

Why is it climbing so much?

Cryptocurrencies have generally been shooting higher since Trump's election. Bitcoin, which is the most famous digital currency, has set an all-time high above $92,000 after starting the year below $43,000.

Excitement is racing because Trump has embraced crypto and said he wants the United States to be the “crypto capital of the planet” and create a bitcoin “strategic reserve.”

What does Elon Musk have to do with any of this?

Musk has become one of Trump's close allies. He's also been one of the most famous fans of dogecoin. In 2021, Musk played a character on “Saturday Night Live” who went by the nickname, the “Dogefather.”

In 2022, Musk made more headlines when he suggested Twitter should perhaps accept dogecoin as payment for subscriptions.

It all came to a head Tuesday, when Trump announced the “Department of Government Efficiency,” which will work from outside the government to offer the White House “advice and guidance” and will partner with the Office of Management and Budget to “drive large scale structural reform, and create an entrepreneurial approach to Government never seen before.”

It has the acronym DOGE, which is also the ticker symbol under which dogecoin trades. Musk will lead it, along with former GOP presidential candidate Vivek Ramaswamy.