Dogecoin (DOGE) crossed the $0.21 mark, propelled by speculation around a possible victory for Donald Trump and enigmatic allusions from Elon Musk. This spectacular surge illustrates the growing impact of American policy on the crypto market.
A remarkable performance driven by the political context
On November 6, 2024, Dogecoin (DOGE) experienced a meteoric rise of 30% in 24 hours, propelling its market capitalization to $30 billion. This performance allows it to dethrone Ripple (XRP) and move into 7th place among the most valued cryptos. The progression is part of a broader bullish movement in the crypto market, with Bitcoin reaching all-time highs at $74,504.
Enthusiasm around DOGE explains itself notably by Donald Trump's recent statements in favor of crypto, contrasting with the more reserved position of the current administration.
The concept of a “Department of Government Efficiency” (DOGE), mentioned by Trump and Musk, has particularly fueled investor speculation.
The implicit support of Elon Musk, an emblematic figure of the cryptosphere, also strengthens investor confidence. His cryptic tweets and appearances alongside Trump have helped create favorable momentum around crypto.
A “Trump trade” that is shaking up the crypto market
The phenomenon, called “Trump trade” by analysts, reflects the anticipation of a policy more favorable to cryptocurrencies in the event of the former president's victory. This dynamic is part of a broader context of transformation of the American crypto landscape, marked by the growing adoption of Bitcoin ETFs.
Institutional investors seem particularly sensitive to this new political situation. The prospect of a looser regulatory framework under a possible Trump administration is boosting capital inflows, indirectly benefiting Dogecoin.
This trend could also continue according to Josh Gilbert, analyst at eToro, who believes that “this bull market has a lot of weight behind it, and this could continue to push the asset up. »
Dogecoin, initially created as a parody of Bitcoin, once again demonstrates its ability to catalyze investor attention. Although still below its all-time high of $0.73, its recent performance demonstrates the persistence of its influence in the crypto ecosystem.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
