Dogecoin Surges as Trump Sparks Crypto Speculation

by Alice
Cryptocurrency1

Cryptocurrencies have recently outpaced Bitcoin, as enthusiasm surrounding President-elect Donald Trump’s policies has fueled a surge in speculative investments. Dogecoin, a popular meme coin often promoted by Trump supporter Elon Musk, has been among the top performers, seeing a 50% increase in the last five days.

Smaller Cryptocurrencies Lead the Charge

Dogecoin (DOGE-USD), themed after the Shiba Inu dog, has garnered significant attention, outperforming Bitcoin (BTC-USD). In addition to Dogecoin, other smaller cryptocurrencies—often called “altcoins”—have posted impressive gains. Among these, ADA (ADA-USD), the token of the Cardano blockchain, has risen more than 60% after founder Charles Hoskinson discussed plans to work with U.S. lawmakers on a recent podcast.

Other altcoins, such as tokens associated with blockchain platforms like Polygon (MATIC-USD), Cosmos (ATOM-USD), Solana (SOL-USD), and Algorand (ALGO-USD), have all outpaced Bitcoin, whose five-day climb was about 7%.

“A rising tide lifts all boats. The boom in Bitcoin quickly spread to the altcoins,” said Caroline Bowler, CEO of digital-asset exchange BTC Markets Pty. “The entire sector is likely to benefit under Trump’s administration.”

Crypto Industry Bets on Trump’s Policies

The cryptocurrency sector invested heavily in the U.S. elections, backing candidates seen as friendly to digital assets. With the Republican Party set to control Congress, industry executives and investors are hopeful for a more favorable regulatory environment under Trump.

Trump has promised to remove Securities and Exchange Commission (SEC) Chairman Gary Gensler, who has been critical of the crypto industry and its compliance with SEC rules. He also plans to support U.S. Bitcoin mining efforts and create a strategic stockpile of Bitcoin.

Some investors are hopeful that cryptocurrencies like Solana (SOL) will soon gain approval for exchange-traded funds (ETFs) in the U.S., following in the footsteps of Bitcoin and Ether, which are already permitted.

Uncertainty About Future Regulations

Despite the excitement, many traders are cautious about the timeline and feasibility of these potential changes. “It’s still too early to tell how everything will shake out” in terms of regulation under Trump, said a16z crypto, a venture capital firm, in a blog post. However, the firm noted that a path for constructive engagement with regulatory agencies has opened.

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