Why Dogecoin Is Jumping Today

Dogecoin (CRYPTO: DOGE) is making gains in Thursday trading: As of noon ET, the cryptocurrency's price was up 6.4% over the prior 24 hours. Meanwhile, Bitcoin (CRYPTO: BTC) was up 3.4%, and Ethereum (CRYPTO: ETH) was up 4%.

Dogecoin's climb appears to have been sparked by a recent move from Tesla and X CEO Elon Musk.

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Musk helps crypto start 2025 on a bullish note

At the very end of 2024, Musk briefly changed his X account username to "Kekius Maximus." The name is a reference to several memes and characters across video games and movies, and the handle change may have been intended as a joke on the media. Musk quoted a tweet from a user who goes by "Adrian Dittman": "Imagine you're a journalist who's writing about Elon on X and it goes: 'Elon Musk, aka 'Kekius Maximus' on X..." Some people believe Musk also operates the Adrian Dittman account.

Musk has since dropped the Kekius Maximus handle, which coincided with further valuation volatility. Still, his name games have had an overall bullish impact on the crypto market, and meme coins in particular.

What comes next for Dogecoin?

Musk has proven to be incredibly influential when it comes to cryptocurrency valuations. Social media posts and offhand comments from the tech leader have often triggered dramatic movements for token prices. Notably, Musk has been one of Dogecoin's most visible supporters -- even if his advocacy for the cryptocurrency sometimes seems to be framed with elements of irony.

Outside of macroeconomic factors, support from Musk could be Dogecoin's biggest pricing catalyst in 2025. With the Tesla founder operating as one of the leaders of the Department of Government Efficiency (DOGE) under the incoming Trump administration, it's possible that the token will continue to enjoy meme-powered momentum.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.