The price of dogecoin (DOGE) rose more than 15% after Donald Trump’s victory in the US presidential election became known. The price of the largest meme cryptocurrency on the market benefited from the role played by Tesla CEO Elon Musk.
As CriptoNoticias has explained, memecoins are assets that pay tribute to pets, political figures and celebrities. They do not solve any problem and mostly are used for financial speculation.
To explain the recent rise in the price of DOGE, it is important to clarify the relationship between the asset inspired by a viral Internet dog and the CEO of Tesla.
Generally, the tycoon usually jokes with the Shiba Inu dog community. In fact, the members of that group proclaimed him as CEO of DOGE on April 1, 2019 on the holiday known as April Fool’s Day. For that reason, Every time Elon Musk says something about dogecoin, its price responds.
One of the last times that the businessman spoke about DOGE was during a rally for Donald Trump’s presidential campaign in Pennsylvania, one of the key states to unlock the race with Kamala Harris (Democratic Party). On that occasion, Musk was consulted about the possibility of leading the new “Department of Government Efficiency” (Department of Government Efficiency, in Spanish), whose acronym in English forms DOGE.
Quickly, the businessman responded: “Yes, DOGE,” which generated an upward momentum in the price.
That is why, as the results of the election became known, which showed a favorable trend for the Republican leader, the price of DOGE rose above $0.21, which represents an increase of 15% in one day.
At the time of publishing this note, the price of the meme cryptocurrency is 0.1893.
The performance of bitcoin (BTC) after Donald Trump’s victory is also another factor to take into account when analyzing the reasons that drove the rise of DOGE. What happens is that every time the digital currency created by Satoshi Nakamoto increases its price, Investor interest in the rest of digital assets tends to expand.
As CriptoNoticias reported, the price of BTC surpassed the $75,000 barrier after Trump’s victory was confirmed and In this way it left behind the all-time high (ATH) of $73,400 which it had marked in March 2024. At the time of this publication, the price of BTC is $74,268.
Why does Trump’s victory favor BTC and the rest of the cryptocurrencies?
Throughout his campaign, the president-elect of the United States stated a stance in favor of cryptocurrencies and promised friendly regulation for the sector, with the aim of promoting its growth.
In one of his speeches, Trump stressed the importance of the main financial power lead the digital asset industry. “If we don’t do it, China will,” he had warned.
He also promised to create a BTC strategic national reserve and assured that he will promote measures that favor cryptocurrency mining in the United States.
The financial company Bernstein projected in its latest report that the price of bitcoin could rise to $90,000 after Trump’s victory in the elections.
Finally, it is important to highlight that the financial markets preferred a multimillion-dollar business triumph for its free market policies and its intention to reduce tax burdens.