Wednesday 06 November 2024 ▪
3
min reading ▪ acc
Dogecoin (DOGE) crossed the $0.21 mark, helped by speculation about a possible victory of Donald Trump and cryptic hints from Elon Musk. This spectacular increase illustrates the growing impact of US politics on the crypto market.
A remarkable performance driven by political context
On November 6, 2024, Dogecoin (DOGE) experienced a meteoric rise of 30% in 24 hours, bringing its market cap to $30 billion. This performance allows it to dethrone Ripple (XRP) and move to the 7th most valuable cryptocurrency. The progression is part of a broader bullish move in the crypto market, with Bitcoin reaching all-time highs at $74,504.
The excitement around DOGE can be explained mainly by Donald Trump’s recent statements in favor of cryptocurrencies, which contrasts with the more reserved attitude of the current administration.
The “Department of Government Efficiency” (DOGE) concept mentioned by Trump and Musk has particularly fueled investor speculation.
Investors’ confidence is also strengthened by the implicit support of Elon Musk, an emblematic character of the cryptosphere. His cryptic tweets and appearances alongside Trump have helped create favorable momentum around cryptocurrencies.
The “Trump trade” that shakes up the crypto market
The phenomenon, which analysts call the “Trump trade,” reflects expectations of a more cryptocurrency-friendly policy if the former president wins. This dynamic is part of the larger context of the transformation of the US crypto landscape, which is characterized by the growing adoption of Bitcoin ETFs.
Institutional investors seem to be particularly sensitive to this new political situation. The prospect of a looser regulatory framework under a possible Trump administration encourages capital inflows, indirectly benefiting Dogecoin.
The trend could also continue, according to Josh Gilbert, an analyst at eToro, who believes “this bull market has a lot of weight behind it, and that could continue to push the asset higher. »
Originally created as a parody of Bitcoin, Dogecoin is once again demonstrating its ability to catalyze investor attention. Although it is still below its all-time high of $0.73, its recent performance demonstrates its continued influence in the crypto ecosystem.
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I am passionate about Bitcoin, I love exploring the twists and turns of blockchain and cryptocurrencies and sharing my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.