The electoral victory of Trump, achieved in close collaboration with Elon Musk, had positive consequences not only on Bitcoin, but also on Dogecoin.
Elon Musk and Trump make Bitcoin and Dogecoin soar
In the previous elections, those of 2020, Elon Musk sided with Biden’s democrats, against Donald Trump.
However, the Biden administration has greatly disappointed him, and so over the past few years, he has changed his mind.
In fact, at a certain point, he decided to openly support Trump, effectively doing electoral propaganda for him.
It is most likely a project that has been on his mind for years, given that the purchase of Twitter dates back to 2022.
When Elon Musk purchased Twitter, it seemed clear from the outset that the initiative did not have a purely economic purpose, especially since the company was in poor condition. At the time, after the January 2021 unrest at the US Congress, Trump had even been banned from the platform.
From the beginning, it was imagined that Musk would reinstate Trump on Twitter, later renamed X, and so it was. In fact, not only has Trump been able to conduct a massive election campaign on X in the last 12 months, but he has also been blatantly helped by Musk.
The same new owner of X explicitly stated it in the profile of their official account.
Furthermore, he even invested several million dollars to support Trump’s election, so much so that Trump himself also hosted him on the stage of his rallies on some occasions.
The effect of Elon Musk and Trump on Bitcoin and the crypto sector
Trump is the first president of the USA in history to be openly pro-crypto.
In particular, during the Biden administration, the SEC chairman Gary Gensler, with a democratic orientation, initiated a veritable war on the crypto sector, which, however, should conclude at the beginning of 2025.
Trump will take office at the beginning of January, and within a few days, or a few weeks, he should replace Gensler with a pro-Republican SEC chairman.
This highly probable scenario has given wings to several crypto that had suffered greatly in recent months due to the problems with the same SEC.
All this has allowed the price of Bitcoin to record new all-time highs above $75,000, while previously it had never even managed to surpass $74,000.
Today the entire crypto market is celebrating, so much so that Bitcoin is not even the cryptocurrency that is gaining the most, although at least it is gaining more than Ethereum.
The effect on Dogecoin
Elon Musk is the true and only architect of the success of Dogecoin.
When he started promoting it, at the beginning of 2021, DOGE made a sensational leap in the crypto markets, reaching an all-time high of even $0.73 in May of that year.
Then, however, it plummeted, so much so that only a month ago it was still at $0.1.
Elon Musk was explicitly mentioned by Trump during the election campaign as the person to whom the new president will give the official task of reviewing the state budget in search of possible cuts to public spending.
Musk has named this possible new department D.O.G.E., or Department Of Government Efficiency. The reference to the Dogecoin cryptocurrency is absolutely intentional.
In fact, already in mid-October, when the probabilities of Trump’s victory were significant, the price of DOGE had risen above $0.12, and subsequently had risen above $0.14 as well.
At the end of October, it had managed to climb back above $0.17, but last week it slightly fell due to doubts about Trump’s victory.
These doubts completely dissolved last night, and thus the price of Dogecoin rose to $0.20. It should be noted, however, that despite the +77% over the last 30 days, it is not only still at -73% from the highs of 2021 but has also not managed to surpass the highs of 2024, set above $0.22.
Bitcoin and the crypto market
Although Bitcoin is still by all means dominating the crypto market at this moment, there are also other cryptocurrencies that are performing very well today.
In particular, they are the ones that have suffered a lot in recent months due to the attacks by the SEC.
For example, UNI of Uniswap today is marking a sensational +30% in a single day, followed by Aave with +24%.
Also CRO of Crypto.com is up by 20% today, followed by several cryptocurrencies linked to the AI narrative.
The point is that the SEC has accused several crypto projects of having placed unregistered securities on the market, and if these accusations had been upheld by a court, such crypto would have had to be delisted.
Now, however, it is expected that the SEC will change course under the new Republican administration of Donald Trump, and such accusations may be destined to come to nothing.
Despite Bitcoin being “only” at +8% compared to yesterday, and therefore underperforming dozens of altcoins from this point of view, its dominance is at the highest of 2024. In fact, lately, it has risen to levels not seen since March 2021, because in phases like these, it is actually Bitcoin that drags the entire crypto market behind it.
The stellar performances of many altcoins today could fade tomorrow, while Bitcoin could continue to drag the crypto market for months.