Following Donald Trump’s win for a second term as U.S. President, Dogecoin and other memecoins surged in value. Dogecoin jumped over 15%, while Shiba Inu gained around 6%, reflecting a broader surge in the crypto market. Even Bitcoin hit an all-time high of over $76,000. Trump’s win has brought new optimism to the crypto community, especially given his supportive stance on digital assets.
Trump’s victory is seen as a positive signal for the crypto market. During his campaign, Trump promised a more crypto-friendly Securities and Exchange Commission (SEC) and hinted at supporting digital currencies in the U.S. This commitment has led many investors to feel confident about the potential growth in the sector.
Chris Chung, CEO of decentralized exchange aggregator Titan, noted that memecoins and AI-related tokens outperformed the general market even before Election Day. This trend suggested that investors were anticipating favorable regulatory changes, making them more open to higher-risk assets like memecoins. Ryan Rasmussen, head of research at Bitwise Asset Management, added that increased interest in memecoins is a sign of retail investors’ willingness to take risks in search of high rewards.
However, Rasmussen advised long-term investors to exercise caution. “Memecoins have low market caps and liquidity, so while they’re skyrocketing now, they could also face steep declines if the market shifts,” he explained. He emphasized that the memecoin market is highly volatile, with thousands of new tokens launching every day, making it difficult to pick long-term winners.
One of the major drivers of Dogecoin’s price jump may be linked to Trump’s statements about appointing Elon Musk to a “government efficiency commission.” Musk, who has famously called himself the “Dogefather,” has a history of influencing Dogecoin’s price with his statements. Musk humorously referred to the proposed commission as “D.O.G.E.”—a nod to Dogecoin—which only added to the excitement among Dogecoin fans.
With Trump’s pro-crypto stance and promises of favorable regulations, memecoins like Dogecoin may continue to attract attention. However, experts urge caution, noting the memecoin market’s volatility and speculative nature.
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