Elon Musk Dismisses Dogecoin Speculation, BlackRock CEO Warns of Dollar's Decline

The cryptocurrency market was rattled on Monday as Elon Musk publicly stated that the U.S. government has no plans to use Dogecoin

The cryptocurrency market was rattled on Monday by Elon Musk's public statement that the U.S. government has no plans to use Dogecoin, which led to a sharp dip in the memecoin's value.

Meanwhile, BlackRock CEO Larry Fink issued a stark warning that the U.S. dollar could lose its global reserve currency status to digital assets like Bitcoin if economic policies don't improve.

In a town hall meeting, Musk clarified that the federal government will not be adopting Dogecoin as part of its financial strategy, quieting rumors that arose after he named a federal efficiency unit as the Department of Government Efficiency (D.O.G.E.).

"There are no plans for the government to use Dogecoin or anything as far as I know," said Elon Musk at the America PAC town hall. "The names are similar, but they’re doing two very different things. We’re just literally trying to make the government 15% more efficient."

Despite the clarification, the crypto market reacted swiftly. DOGE's price fell nearly 5% after Musk's remarks and later stabilized at around $0.17.

In his annual letter to investors, Fink expressed concern over the future of the U.S. dollar, which he believes could be undermined by Bitcoin and other digital assets if fiscal policies remain unchecked.

"Decentralized finance is an extraordinary innovation. It makes markets faster, cheaper, and more transparent. Yet that same innovation could undermine America’s economic advantage if investors begin seeing Bitcoin as a safer bet than the dollar or if U.S. financial markets become less competitive or efficient," said

"We are seeing this relative preference for Bitcoin in the flows into our products. Our own Bitcoin exchange-traded fund, IBIT, has had an incredible launch, exceeding $50 billion in assets under management within a year—a testament to the strong demand for investing in this asset class. But it also signals a broader shift in investor sentiment as they seek out new opportunities and value propositions,"

Fink also highlighted the potential of tokenization to revolutionize investing, enabling real-world assets such as stocks, bonds, and real estate to be traded more efficiently via blockchain technology.

"The same technology that brought us Bitcoin can be used to tokenize any asset, breaking down the barriers between asset classes and opening up new avenues for investment and liquidity," he said.

In another major development, well-known Bitcoin mining firm Hut 8 has partnered with American Data Centers, an investment firm backed by Eric Trump and Donald Trump Jr., to launch a new Bitcoin mining company called American Bitcoin.

The move is part of a broader trend of American companies increasing their stake in the digital asset mining sector. The involvement of the Trump family members signals a potential shift in the political landscape, as Bitcoin continues to gain traction among conservative policymakers and business leaders.

The partnership will combine Hut 8's expertise in mining and operating Bitcoin nodes with American Data Centers' experience in developing and managing large-scale data centers.

"We are excited to combine our strengths to launch American Bitcoin and contribute to the growth of this vital industry," said Sean Newman, CEO of American Data Centers. "This venture will not only expand our investment portfolio but also foster innovation in the digital asset space."

Finally, despite recent volatility, investor sentiment toward digital assets appears to be improving, according to a report by CoinShares.

Crypto investment products saw inflows of $226 million last week, marking the first net positive movement in over a month and snapping a five-week streak of outflows.

"Investors remain cautious but are starting to see opportunities as the market stabilizes following the recent volatility," CoinShares analysts noted in the report.

Bitcoin-focused funds led the way with inflows of $164 million, while altcoin products also saw interest with net inflows of $78 million after several weeks of outflows.

Overall, the latest data point to a shift in sentiment as investors become less risk-averse and explore opportunities beyond traditional asset classes.

"The outflows from equities and the inflows into Bitcoin continue to highlight the fluidity of capital flows as investors respond to changing market conditions and opportunities," CoinShares stated.

The cryptocurrency market continues to be highly reactive to statements from influential figures like Musk and Fink. While short-term fluctuations persist, the broader trend indicates growing institutional interest in digital assets, particularly Bitcoin.

With regulatory discussions still evolving and major corporations entering the crypto space, 2025 is shaping up to be a defining year for digital finance. The fate of the U.S. dollar, the role of decentralized finance, and the political alignment of crypto-friendly policies will be key factors to watch in the months ahead.