Dogecoin Soars 25% as Trump Wins, Trader Sees More Gains

Dogecoin (DOGE) has experienced a significant surge, increasing over 25% in the last 24 hours, thanks to a renewed endorsement from Elon Musk. This rise has also extended its impressive 30-day gains to over 65%, making it the top-performing major cryptocurrency.

Musk's Proposal and Political Context

Elon Musk, a long-time supporter of Dogecoin since 2021, has proposed the establishment of a Department of Government Efficiency (D.O.G.E) as part of the Republican campaign. This proposal aims to enhance government spending and monetary planning, cleverly referencing the cryptocurrency.

Trump's Election and Market Reactions

According to Fox News, Donald Trump has secured his second term as U.S. president, which has further fueled optimism in the crypto market. Following Trump's electoral success, cryptocurrencies such as Bitcoin (BTC), Dogecoin, and others saw a notable increase in value, coinciding with rising betting odds for Trump's victory.

Market Dynamics and Trading Activity

In the past 24 hours, Dogecoin futures recorded over $30 million in short liquidations, indicating that part of the price movement was driven by traders covering losing bets. The open interest for DOGE has risen to 8.30 billion tokens, up from 7 billion tokens earlier in the week, reflecting strong demand and expectations for continued market activity.

Broader Market Sentiment and Related Tokens

A parody D.O.G.E token on Ethereum has also seen a dramatic rise of 77% in the last 24 hours, and a staggering 500% increase since a previous analysis highlighted interest in this memecoin. Additionally, other dog-themed tokens such as Shiba Inu (SHIB), Floki (FLOKI), and Bonk (BONK) have gained over 10%, contributing to an average sector increase of 16%, outpacing the broader CoinDesk 20 (CD20) index, which rose by 7.2%.

Future Outlook

Trader ‘unipcs,’ known for his bullish stance on DOGE and D.O.G.E, expressed his belief that the potential impact of Elon Musk's support is not yet fully reflected in the market prices. He anticipates a media surge around Musk's backing of Trump and the D.O.G.E narrative, which could serve as a catalyst for further price increases in both Dogecoin and the D.O.G.E ETH memecoin.

Traders have historically viewed Trump’s election as a positive signal for the cryptocurrency market, given his pro-crypto policies and aspirations to position the U.S. as a leader in Bitcoin adoption. In contrast, his opponent, Kamala Harris, has proposed regulatory measures aimed at protecting certain groups but has not made similar pro-crypto commitments.