In this photo illustration, Musk’s Twitter account is displayed on a phone screen with the Dogecoin logo in the background.
Adris Abbas | Light Rocket | Getty Images
Memecoin surged early Wednesday after election results put former President Donald Trump in a strong position to secure a second term.
Dogecoin Shiba Inu shares soared more than 22%, with Shiba Inu shares rising 8%, according to Coin Metrics. These moves came as Bitcoin prices even rose to a new record of $75,000.
Chris Chung, CEO of decentralized company Titan, said: “Cryptocurrency markets experienced low volatility in the lead-up to the election as the industry looked to understand future regulatory conditions, and traders were prepared for volatility once the results began to be announced.” Based on Solana Mere Transaction aggregator for the blockchain. “Some industries that boost prices, such as renewed interest in meme coins, may experience significant price swings as individual states announce election results.”
Ahead of Election Day, memecoins and artificial intelligence-related crypto tokens outperformed the overall crypto market. Sectors of the cryptocurrency market are used to gauge the risk appetite of retail investors.
Ryan Rasmussen, head of research at Bitwise Asset Management, told CNBC that the increase in memecoin activity indicates that retail investors are getting involved and are interested in further lowering the risk curve.
“Given memecoins’ low market cap and low liquidity, I wouldn’t be surprised to see them surge alongside the broader cryptocurrency rally,” he said. “If crypto sells off, I would expect memecoins to There will be a similar sharp decline.”
“I would urge long-term investors not to place too much emphasis on meme coin activity,” he said. “In the long run, there are few winners in the memecoin market, and with thousands of memecoins being issued every day, choosing a specific memecoin is like buying a Lotto ticket.”
Cryptocurrency markets appear to be gearing up for a Trump victory on Wednesday as investors focus on the outcome of the U.S. presidential election. The former president is considered a more favorable candidate for the broader cryptocurrency market beyond Bitcoin, as he has promised to create a more crypto-friendly Securities and Exchange Commission if re-elected.
“Trump is largely seen as very positive on the cryptocurrency market, and any sign of a possible victory could push prices up extremely quickly in anticipation of massive capital being deployed,” Chung said.
Co-founder and CEO Nic Puckrin said: “Dogecoin may also benefit from the appointment of Elon Musk (a long-time supporter of Dogecoin) as the head of Government Efficiency in the Trump administration.” “We are gathering for a very realistic prospect.” Crypto education platform Coin Bureau.
This was a reference to Trump’s comments in September, when he said he would name a Tesla CEO Go to the Council on Government Effectiveness. Musk, who has called himself a “dog dad” in the past and is known for making public comments about meme coins that influence their prices, has since dubbed the council the “Department of Government Efficiency” on his social media platform X. “Governor”
About The Author
