Experts Forecast Memecoins To Excel No Matter The US Election Results, Here’s Why
06 Novembre 2024 - 8:00AM
NEWSBTC
As the US presidential election results loom, one analyst is
expressing confidence in the continuous surge of memecoins,
particularly in the context of the ongoing political
landscape. In a recent social media post on X (formerly
Twitter), Miles Deutscher asserted that dog-themed and cat-themed
cryptocurrencies will continue outperforming the broader crypto
market, regardless of whether Donald Trump or Kamala Harris emerges
victorious. Dogecoin Leads Memecoins Resurgence On Election Day
Bitcoin (BTC), the largest cryptocurrency on the market, is trading
near the $70,000 mark, up a modest 2.2% over the past 24 hours,
after several failed attempts to break above its all-time high of
$73,700 last week. In stark contrast, Dogecoin (DOGE), the
leading memecoin by market capitalization, has surged by 12% during
the same period, demonstrating the sector’s performance relative to
the top ten cryptocurrencies. Related Reading: Solana ‘Must Break
Descending Resistance’ To Regain Bullish Momentum – Analyst
Deutscher suggests that if Trump wins the election, Dogecoin’s
positive momentum will likely increase. He cites Trump’s proposed
Department Of Government Efficiency (DOGE) initiative, which he
believes will increase Dogecoin’s visibility and liquidity, as a
catalyst that could spark a broader rally in the memecoin
space. “DOGE as the meme leader will drive attention and
liquidity rotation to the broader meme narrative, he asserts.” This
enthusiasm could lead to a significant influx of speculative
investments, often called “fear of missing out” (FOMO). Increased
Crypto Scrutiny Under A Harris Administration? Deutscher further
predicts that a Trump victory would spark a rally in altcoins,
especially memecoins, which have historically shown strength
leading up to elections. Another clear example of this is
that the largest tokens in the Solana memecoin ecosystem, Dogwifhat
(WIF), Bonk Inu (BONK) and Popcat (POPCAT), saw surges of 6.3%, 8%
and 6% respectively, on election day, all of which outperformed the
top ten cryptocurrencies in the market. Deutscher also said
that with many cryptocurrencies undergoing significant drawdowns as
investors de-risked ahead of the election, they would likely
experience a pronounced bounce if Trump secures the
presidency. Conversely, if Kamala Harris wins, the analyst
foresees a different dynamic. The possibility of increased
regulatory scrutiny on utility tokens could prompt investors to
seek refuge in more speculative assets, such as memecoins.
Related Reading: Why Is Dogecoin Going Up Today? Key Drivers Of
DOGE’s 10% Surge Deutscher notes that under this scenario, the fear
of a crackdown, reminiscent of the operation chokepoint initiatives
targeting certain crypto assets, may lead investors to gravitate
towards nihilistic alternatives like memecoins. Ultimately, this
shift could increase meme coins dominance, especially if
traditional sectors like decentralized finance (DeFi) face
heightened scrutiny. In this case, Deutscher asserts that
investors might shy away from the broader altcoin market, favoring
assets that have already demonstrated resilience and strength
throughout the year. Based on price action trends, the
analyst points out that some memecoins may be perceived as less
risky than other altcoins, a sentiment that appears to be gaining
traction among retail investors. At the time of writing, Dogecoin
trades at $0.1755. Featured image from DALL-E, chart from
TradingView.com
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