Donald Trump’s victory in the United States presidential election has had a positive impact on the price of Bitcoin (BTC) and many cryptocurrencies.
This is because the now elected president has fiance actions that will favor the digital asset industry. Among them, we can mention the creation of a strategic national reserve in bitcoin, the development of regulations that promote the Bitcoin Mining and the firing of the current Chairman of the Securities and Exchange Commission (SEC), Gary Gensler, who is considered by many to be an enemy of cryptocurrencies.
Some cryptocurrencies have seen more favor than others in the last week. Among the first, one that stands out is dogecoin (DOGE)the longest-lived memecoin and the one with the largest market capitalization.
In the last 7 days DOGE price went from $0.14 to $0.24. At the time of this publication, the increase in that period is 69%.
The following graph, provided by the CoinMarketCap platform, shows the rise that DOGE has had since last Sunday and that it has increased since November 6, the day the trump victory.
DOGE price in the last 7 days. Source: CoinMarketCap.
Something that particularly drives DOGE is its ties to businessman Elon Musk. As CriptoNoticias has reported, there are rumors that the billionaire owner of Tesla, among other companies, could hold some government position during the Trump administration. And, if the rumors are correct, this position would be that of director of the Department of Government Efficiency (whose acronym in English would be DOGE).
In the previous bull cycle, Elon Musk’s tweets about DOGE were what drove the price. Now, it looks like he may go further with the memecoin name, taking it to a state department.
It is worth clarifying that all of these are nothing more than rumors. Even if the DOGE department were created and Musk was a director, there would be no relationship with the Cryptocurrency beyond the similarity in the name.
This scenario serves as a reminder of the volatility and irrational nature that characterizes memecoins. Moves like DOGE’s, fueled by rumors and celebrity expectations, reinforce its reliance on speculation rather than solid fundamentals.
History has shown that drastic rises are often followed by equally steep declines, underscoring the irrationality that can dominate the memecoin market.
Despite this “irrationality”, the truth is that DOGE continues to rise and recently has surpassed XRP, the “serious” cryptocurrency issued by the company Ripple.
10 cryptocurrencies and tokens with the highest market capitalization. Source: CoinMarketCap.
If stablecoins are not taken into account, DOGE is the fifth most valuable cryptocurrency, after bitcoin (BTC)ether (ETH), solana (SOL) and BNB (BNB).
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