Dogecoin Just Barked ,Thanks to Elon & Trump’s crypto magic
2024-10-29

Musk & Trump: Dogecoin’s New Favorite Hoomans? 

In a landscape where cryptocurrency trends often intersect with political drama, both Bitcoin and Dogecoin have seen notable price movements leading up to the US presidential election. Bitcoin has rallied to within 5% of its all time high, while Dogecoin, defying the general altcoin downturn, surged almost 12%. This surge followed Elon Musk’s endorsement and the coin’s growing association with Donald Trump’s campaign.

 Dogecoin’s Rise and the Musk Trump Link 

Bitcoin’s upward trend is mainly driven by technical factors and larger economic conditions. On the other hand, Dogecoin’s momentum can be traced to its ties with Elon Musk and Donald Trump. After Musk’s appearance at a Trump rally in New York, Dogecoin’s price jumped by 16%, hitting $0.167 and marking the highest percentage gain among the top 100 cryptocurrencies for that day. Musk, known for his strong support of DOGE, proposed a “Department of Government Efficiency”—cleverly abbreviated as  D.O.G.E . making the coin a playful symbol for Trump’s campaign goal of reducing government spending.

Musk’s impact on Dogecoin is well-documented, particularly during the 2021 bull market when he frequently mentioned it on Twitter. Recently, he fueled further excitement by tweeting a meme of himself with a DOGE avatar, invigorating Dogecoin’s community. Paul Howard, a senior director at crypto trading firm Wincent, stated, “DOGE is now closely connected to the US presidential race due to Musk’s endorsement and his presence at Trump’s rallies.”

 Prediction Markets, Dogecoin & Trump’s Chances 

Dogecoin’s rise isn’t happening in isolation. The correlation between Trump’s campaign progress and Dogecoin’s price growth has been magnified by prediction markets favoring Trump’s chances in the election. On Polymarket, blockchain-based odds for Trump’s victory have risen from 61% to nearly 66% in the last week. This Dogecoin-Trump link, strengthened by Musk’s involvement, brings a speculative edge to both the meme coin and Trump’s campaign, both driven by their nontraditional popularity and social media narratives.

As Trump’s odds improve, some believe Dogecoin could keep gaining attention if Musk’s D.O.G.E. proposal picks up support. Although the department idea is only theoretical, it has resonated with both Musk and Trump supporters, injecting a novel and ironic rallying point into the 2024 campaign.

 Market Reactions and Future Implications 

Dogecoin’s recent rally shows how influential prominent endorsements can be, even amid a sluggish altcoin market. Once considered a “joke currency,” DOGE now has serious investors betting on Musk’s ongoing support to maintain its relevance. While it remains well below its peak of $0.7 in 2021, Dogecoin’s current five-month high and unique position in the political limelight could attract more attention leading up to Election Day.

For Bitcoin, the focus is on its tendency to rally after elections, as new market entrants often surge in during these periods. If BTC’s current “bullish setup” resembles late 2020’s conditions, as Sigel suggests, it may reflect crypto’s changing role during political transitions and heightened speculation.

Overall, the intertwining of political narratives with cryptocurrency prices signals a noticeable market shift. While Bitcoin remains relatively stable, Dogecoin’s speculative value fluctuates with the influence of key figures. Whether gains are driven by Trump, Musk, or broader market forces is uncertain, but one thing is clear: in the unpredictable world of crypto, politics and social popularity have become key factors in shaping market dynamics.