Caitlin Long is calling for urgent reforms to the Department of Government Efficiency (DOGE), which are being proposed amid regulatory challenges. Long warned that deep budget cuts could cause an economic recession and called for a focus on “gross product” rather than GDP. After Musk’s proposal, Dogecoin’s price rose 7%, driven by a bullish “golden cross” pattern in technical analysis.
Elon Musk’s recent proposal to cut at least $2 trillion from the US federal budget has garnered a lot of attention, including from the crypto industry. Caitlin Long, CEO of Custody Bank, a financial institution focused on providing cryptocurrency businesses, shared her thoughts on social media on October 28th regarding the Department of Government Efficiency (DOGE) proposal.
DOGE’s future requires urgent reform
He has long expressed optimism about DOGE’s potential, but stressed the need for swift action. “The abuse of regulation is staggering,” she said, highlighting the burden overregulation places on businesses like custody. Recognizing the upcoming 2026 U.S. Senate elections and the possibility of a Democratic majority, Long urges the DOGE team to “act quickly” to establish lasting reforms that will not be reversed in the future. did. management.
Source: Caitlin Long
But Mr. Long also warned of a potential downside to drastic spending cuts: economic depression. U.S. government spending currently accounts for a significant portion of GDP (gross domestic product), and sharp cuts could lead to an economic slowdown. Long argues that the current focus on GDP growth as a key economic indicator is flawed.
“That’s the wrong measure and they’re going to have to explain why,” Long asserted. She proposes a move to a “gross product” measurement that incorporates business-to-business (B2B) or supply chain spending, providing a more comprehensive picture of economic activity.
“Reducing government spending will definitely lead to a reduction in GDP,” Long acknowledged. “But more importantly, capital and jobs will be reallocated to the private sector, B2B activity will grow, and that’s where the real growth will be.”
Dogecoin shows positive reaction
Recent developments surrounding Musk and DOGE have coincided with Dogecoin’s price increase. The cryptocurrency has risen about 7% in the past 24 hours, reaching $0.145 on October 28th. This rally is part of a massive 14.65% rebound after the formation of the ‘golden cross’ on the daily chart.
Technical analysts consider the golden cross to be a bullish signal indicating a possible change in momentum from a downtrend to an uptrend. Dogеcoin’s 50-day moving average (EMA) crossed above the 200-day EMA on October 25, forming this bullish pattern.
Source: Trading View
Whether Dogecoin can maintain its current support level of $0.141, which became a major resistance level in July, will be crucial in determining the future direction of the price. If this support holds, traders may see a further rally towards the $0.156 and $0.171 resistance levels in November. Conversely, a decline below $0.141 could result in a fall towards the support of the uptrend line near $0.122.
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