DOGE treasury rumor of Musk-linked buy triggers $1.2B selloff, price dips 2% in 24 hours

The Doge treasury rumor has jolted markets after reports tied Elon Musk’s attorney, Alex Spiro, to a $200 million fundraising plan for Dogecoin. But instead of rallying, DOGE slipped 2% to $0.21 in the past 24 hours—defying its usual Musk-fueled surges and leaving traders questioning whether the hype will match reality.

DOGE treasury rumor meets market reality

Dogecoin has historically reacted with wild volatility to Elon Musk’s comments. From Tesla’s early embrace of Doge for merchandise to Musk’s infamous “Dogefather” tweets, the meme coin has often moved in lockstep with his words.

But this time, the market reaction to the DOGE treasury rumor has been muted. Instead of rallying, DOGE dipped—suggesting that investors may be focusing more on fundamentals and less on hype.

“Markets are increasingly cautious when it comes to rumors, even those tied to high-profile figures,” said Matt Hougan, CIO at Bitwise Asset Management, in a note.

“The DOGE treasury rumor could be bullish in the long run, but traders want clarity before committing.”

Inside the alleged $200 million dogecoin vehicle

Details around the DOGE treasury rumor remain scarce, but reports suggest the fundraising project aims to pool $200 million from public investors.

If realized, it would mark one of the most structured financial efforts linked to Dogecoin’s future.

Crypto market analyst Noelle Acheson told Coindesk:

“The idea of a Dogecoin treasury is fascinating. If structured well, it could lend the meme coin some institutional credibility. But the lack of transparency right now is weighing on investor sentiment.”

While Dogecoin’s loyal community remains enthusiastic, institutional investors may want firmer details before considering exposure.

Spiro’s track records adds credibility

One factor fueling interest in the DOGE treasury rumor is Alex Spiro’s involvement. Spiro, a high-profile attorney, has long defended Musk in sensitive legal cases—especially those tied to crypto.

In August 2024, he successfully secured the dismissal of a lawsuit alleging Musk manipulated Dogecoin prices through tweets. That victory bolstered his reputation as both a sharp legal strategist and a trusted Musk ally.

“Alex Spiro’s name adds legitimacy to the DOGE treasury rumor,” noted Edward Moya, senior analyst at OANDA. “Still, even with that credibility, investors are signaling they need facts, not just speculation.”

DOGE treasury rumor: Why traders are buyers the hype yet

The muted reaction to the DOGE treasury rumor highlights a shift in market psychology. With global interest rates high and liquidity tightening, retail traders may not be as eager to chase hype-driven moves.

Furthermore, Dogecoin’s fundamentals remain relatively unchanged: it’s still primarily a meme-driven asset with limited use cases compared to rivals like Ethereum or Solana.

“This rumor is a test case for whether Dogecoin can mature,” said Anthony Sassano, a crypto educator and market commentator.

“If the DOGE treasury rumor translates into real capital backing, that could spark a new narrative. But right now, it’s just noise.”

What’s next for Dogecoin and the treasury rumor?

For now, Dogecoin trades sideways as the DOGE treasury rumor continues to circulate. Traders are watching closely for official confirmation from the House of Doge or Musk’s circle.

If the $200 million project becomes reality, analysts expect renewed bullish momentum. However, without clear structure or timeline, the rumor risks fizzling out.

Regardless, the DOGE treasury rumor has already underscored how Dogecoin remains one of the most headline-sensitive assets in crypto.

Whether hype fades or rallies return, traders will be keeping one eye firmly on Musk—and the other on Spiro.