The market enjoyed a week-long surge following Donald Trump's re-election. Bitcoin led the charge by topping $89,000 for the first time, briefly peaking at $89,995 early Tuesday. Solana passed $200, and the total crypto market cap now sits at $3.04 Trillion, up more than 3% in 24 hours.
Investments across the board are taking a well-needed breather, but one coin has been the standout performer: Dogecoin.
Dogecoin, a token promoted by billionaire Elon Musk (and with utility in Tesla stores), is a meme-crowd favorite. The Shiba Inu-themed coin, known as DOGE, doubled in price over five days, and that rise looks set to stay with news Musk is to join the Trump Administration in a department of the same name.
Elon Musk and former Republican presidential candidate Vivek Ramaswamy will lead a brand new arm of government called The Department of Government Efficiency (TDOGE). Trump said the two “will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies.”
— Elon Musk (@elonmusk) November 13, 2024
The once ridiculed meme-coin looks to have been firmly legitimized, with its value now surpassing the great American stalwart Ford Motors.
Crypto investors are clearly excited by Trump's new pro-crypto stance. His commitment to making the U.S. the "crypto capital of the world" by loosening regulatory oversight has sparked a wave of investor enthusiasm, contributing to significant market gains. The SEC sits firmly in Trump's crosshairs, with plenty of potential crypto-friendly names in the hat to replace Gary Gensler.
Let's not forget that Trump, too, will benefit from any easing of regulations since the launch of his family-owned and run World Liberty Financial and its governance token just weeks before his election win.
Amidst the crypto euphoria, even Cardano's ADA has not been left behind, much to the amusement of online commentators. The digital currency surged by approximately 93% over the past week.
The fact that Cardano is up 70% this week definitively proves that we will not be a serious industry for at least another 5 years and that there is no god
— mert | helius.dev (@0xMert_) November 10, 2024
This optimistic sentiment was mirrored by the performance of crypto-related investments, such as spot Bitcoin ETFs, which saw significant inflows following the election.
However, Treasury yields and the dollar rose on Tuesday, signaling that investors expect inflationary pressures from Trump’s promised trade tariffs and tax cuts. Stocks slipped in response, with the DOW down 350 points after a 5-day rally.
The crypto sector's history of dramatic price swings and regulatory uncertainties suggests that while the market may continue to see substantial growth, it could also face significant corrections, particularly if the Trump administration's vision does not meet market expectations.
For now, though, as the market frenzy takes a day off, the hope will not.
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