Dogecoin Edges Past Bitcoin in 2024: How Trump Victory and Musk Alliance Are Powering Its Rally

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As a seasoned researcher with over two decades of experience in analyzing financial markets and trends, I’ve seen my fair share of wild rides. However, the recent developments surrounding Dogecoin have left me genuinely intrigued and somewhat amused. The convergence of politics, celebrity endorsements, and market dynamics is creating a perfect storm that could potentially propel DOGE to unprecedented heights.

By November 6, 2024, at 11:05 a.m. UTC, Dogecoin (DOGE) is outperforming Bitcoin (BTC) for the year so far. As reported by CoinDesk Indices, Bitcoin is currently valued at $74,790, having increased by 7.7% in the last day, 22.64% over the past month, and a significant 77.34% since the start of the year. In contrast, Dogecoin is trading at $0.2040, demonstrating remarkable growth of 22.06% in the last 24 hours, 91.59% over the past month, and a substantial 109.91% for the year-to-date (YTD).

The surge refers to reports indicating that Donald Trump has been unofficially projected as the winner of the 2024 U.S. presidential election by several prominent news sources such as CNN. According to their reporting, Trump’s lead in the decisive state of Wisconsin is expected to reach the required number of electoral votes (276), although the counting of votes is still ongoing in certain crucial states.

Trump’s win comes after several months of progressively supportive stance towards cryptocurrencies, with one of the key moments being his speech at the Bitcoin 2024 event held in Nashville on July 27th.

In his much-awaited address, Trump expressed some notable views on cryptocurrency, asserting that Bitcoin is unlike anything else before it, viewing it not only as a remarkable technological innovation but also as an extraordinary demonstration of human collaboration and accomplishment. He confidently forecasted that Bitcoin could potentially exceed gold’s market value and detailed his aspirations for the U.S. to become the global leader in Bitcoin by mandating that all Bitcoin mining takes place within our borders.

During his speech, the ex-president highlighted the importance of personal control over digital assets (like Bitcoin or Ethereum) and vowed to dismiss the current SEC Chair, Gary Gensler, on his return to office. Trump further stated that new crypto regulations would be developed by people who support the industry’s expansion, and he proposed establishing a regulatory system for stablecoins tied to the US dollar to bolster the American currency.

In his speech, he contended that it’s not Bitcoin that is endangering the dollar; instead, the actions of the current U.S. administration pose the greater risk. He concluded by making assertions about substantial Bitcoin holdings by the U.S. government and a vow to preserve and increase these holdings in the future.

After delivering a speech in July, Donald Trump and his family have been more vocal about cryptocurrencies on social media sites like X (previously Twitter) and Truth Social. A notable event occurred on September 16 when World Liberty Financial, a cryptocurrency initiative linked to Trump, was launched.

Trump personally revealed the upcoming launch in a video shared on X, encouraging public involvement in a real-time discussion event celebrating the occasion. This initiative intends to transform decentralized finance by utilizing a non-transferable governance token named WLFI, developed within the Aave platform and Ethereum blockchain infrastructure.

Despite Trump not explicitly endorsing Dogecoin, his latest social media actions clearly show a significant affinity towards cryptocurrencies as a whole.

Enthusiasm among cryptocurrency enthusiasts extends beyond just Bitcoin, as they anticipate President Trump’s commitment to appoint a more favorable regulator for the crypto space instead of Gary Gensler at the SEC. This potential change could advantage Dogecoin and other alternative coins that haven’t yet obtained explicit regulatory endorsement.

The adventure of Dogecoin kicked off on December 6, 2013, when it was introduced as a lighthearted and amiable digital currency by creators Billy Markus and Jackson Palmer. This decentralized, peer-to-peer digital money, known for its Shiba Inu dog breed symbol, has experienced a significant rise in popularity recently, largely thanks to the active endorsements from influential figures like Elon Musk and Mark Cuban, the latter famous for owning the Dallas Mavericks and appearing on “Shark Tank.” These backing efforts have played a crucial role in elevating Dogecoin to the position of the 8th most valuable cryptocurrency, boasting a market cap exceeding $29.63 billion.

Despite DOGE currently being significantly lower than its peak of $0.7316, achieved on May 8, 2021, the vocal endorsement by Elon Musk for Donald Trump’s presidential bid has sparked renewed enthusiasm among Dogecoin enthusiasts, suggesting a possible surge towards and beyond the $1 mark.

Musk’s connection to Dogecoin dates back to April 2019, when he first expressed his admiration for the cryptocurrency on Twitter, calling it his favorite. As CEO of Tesla and SpaceX, as well as the primary owner and leader of X, Musk’s influence on the cryptocurrency has been substantial.

Market analysts are intrigued by the possibility of a partnership between Trump and Musk, raising some interesting discussions. On November 4th, 2024, Justin Spittler, RiskHedge’s Chief Trader, posed an engaging query about this potential alliance on his platform.

“Serious question… Is $DOGE the ultimate Trump Victory trade?“

Today, on November 6th, crypto analyst Ali Martinez shared a highly optimistic forecast about X. Given Elon Musk’s influence on the newly elected President, Martinez believes Dogecoin might be poised for a significant spike. In past market uptrends, when DOGE surpassed the 0.50 Fibonacci retracement level, it frequently continued to rally towards the 1.618 or even 2.272 Fibonacci levels. This could potentially drive the price to anywhere between $4 and $23.

As a researcher, I recently came across an intriguing piece of news from a Forbes article published on November 2. The article mentioned that Howard Lutnick, the CEO of Wall Street titan Cantor Fitzgerald and Trump’s transition team head, shared some insights with investor and YouTube personality Anthony Pompliano.

In a recent meeting that lasted two hours, I had the opportunity to discuss ideas with Elon. Among those concepts was the proposal for establishing a new department named “Doge” [Department Of Government Efficiency].

“We plan on cutting out unnecessary spending from our $6.5 trillion budget and achieving balance. We have unused offices, along with procurement waste on a massive scale, and I truly mean ‘massive’. Someone needs to show courage and tackle this issue.

Despite the playful remark about the “Department of Doge,” it’s possible that Trump might recognize Musk’s loyalty and backing with some form of recognition, thereby boosting Musk’s and his companies’ visibility even more. This enhanced publicity could bolster the idea that Musk is beneficial for Dogecoin, potentially leading to a future where he could integrate DOGE into the X platform as a payment method, further cementing its relevance.

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2024-11-06 19:38