Dogecoin Among Memecoins Experiencing Rally as Crypto Investors Speculate on Potential Trump Election Win

Driven by preliminary electoral outcomes favoring Donald Trump for a potential second presidency, memecoins experienced a significant rise early Wednesday.

Dogecoin saw an over 22% uptick and Shiba Inu appreciated by 8%, as reported by Coin Metrics. These spikes coincided with bitcoin’s climb to an all-time high of $75,000.

“Anticipating post-election volatility, traders had already factored in potential shifts as election updates came in, especially in the crypto market where stability was anticipated as regulatory guidance was sought,” remarked Chris Chung, the CEO of Titan, a Solana blockchain-based decentralized exchange aggregator. “Areas that have been propelling prices, like the rejuvenated attraction to memecoins, are poised for pronounced price changes with each state’s election results,” he added.

Approaching Election Day, both memecoins and AI-centric crypto tokens have outshone the larger cryptocurrency market, highlighting retail investors’ willingness to engage in riskier ventures.

“The memecoin sector’s vibrancy is indicative of the retail investors’ readiness to delve deeper into speculative ventures,” commented Ryan Rasmussen, head of research at Bitwise Asset Management. He observed that given their small market capitals and liquidity, the significant surge of memecoins alongside a broader crypto rally is not unexpected. “However, should there be a crypto descent, these memecoins are likely to mirror the decline with equally large margins,” he cautioned.

Rasmussen continued, advising long-term investors to maintain a prudent perspective towards memecoin movements. “The memecoin space is likely to have very few long-term survivors, with daily introductions of thousands of new tokens, which makes choosing the correct memecoin all the more akin to gambling on lottery tickets,” he clarified.

As investors eyed the unfolding U.S. presidential election results on Wednesday, there appeared to be market positioning for Trump’s return to the presidency. With Trump known to be more favorable toward the crypto sector beyond just bitcoin, advocating for a more accommodating Securities and Exchange Commission, anticipation was high.

“Trump is widely acknowledged as a bullish force for the cryptocurrency markets. Any suggestion of him winning tends to immediately buoy prices due to expectations of increased capital investments,” noted Chung.

“There’s also buzz around Dogecoin, partly fuelled by Elon Musk’s, a staunch Dogecoin supporter, suggested appointment by Trump for his Department of Government Efficiency,” mentioned Nic Puckrin, co-founder and CEO at Coin Bureau, a crypto learning platform. “Following a statement by Trump in September regarding the creation of a commission to improve government efficiency, where he mentioned appointing Tesla’s CEO, Musk playfully renamed it to ‘Department of Government Efficiency,’ acronymized as D.O.G.E.,” Puckrin elaborated.