- The US President friendly to Cryptocurrencies, Donald Trump, may ignite optimism for Cryptocurrencies when he assumes a position of power
- Dogecoin is also predicted to benefit greatly and may receive support from Elon Musk
At the time of writing, Bit (BTC) is trading near the $100K USD mark after making strong gains over the past six weeks. This sudden surge began after the results of the US presidential election were announced on November 5.
With clarity on regulations having benefited Cryptocurrencies, such as the RLUSD Stablecoin of Ripple, other Cryptoassets will also likely benefit. Which assets are likely to be the biggest beneficiaries from the Trump presidency?
A Strategic Bit (BTC) Reserve for the US?
On Thursday, President-elect Donald Trump answered a question about the potential for a Bit (BTC) reserve. He told Jim Cramer, "We're going to do something really spectacular with Crypto," speaking from the New York Stock Exchange.
During his previous presidential term, Trump pointed to the high stock prices and asserted that the market was strong and America was becoming great again. In the coming months and years, he may use the rising Bit (BTC) price to validate his Cryptocurrency-related electoral promises.
One of those promises is a national strategic Bit (BTC) reserve, with legislation introduced in the Texas House on December 12 to establish this.
The price action difference between the previous cycle and this one is significant. A 34-week accumulation period after making a new USD high occurred earlier this year, lasting from March to early November. In 2020, BTC had to contend with resistance at the ATH, but it broke through in less than three weeks.
It then achieved nearly 400% gains before April 2021. A similar surge would take BTC to near $300K by April 2025, but we know that subsequent cycles take longer and provide lower percentage gains.
Breaking the ATH before BTC's next halving event has not yet occurred. An eight-month accumulation period below those highs in the halving year is also a new phenomenon. This cycle could be propelled to $280K-$300K levels seemingly impossible with President Trump in charge, marking each new weekly ATH as a victory for him.
Dogecoin's Co-Leader Musk May Drive the Memecoin Market
Other influential figures or KOLs could also help accelerate other market sectors. A few weeks ago, we saw Murad Mahmudov emerge as a prominent Memecoin KOL, but no one can beat the top Dogecoin shill position of the previous cycle. Elon Musk, the owner of X (formerly Twitter), was one of the reasons for the Dogecoin (DOGE) price surge in the previous cycle.
The widespread speculation and public perception of his technological prowess have led people to place a lot of faith in his words. When he shares Doge-related memes or news of Tesla accepting Dogecoin as payment, these updates have contributed to DOGE's price appreciation. However, his influence has waned as the cycle matures.
As the Co-Head of the Government Efficiency Office or D.O.G.E., any official announcement about the department is likely to lead to a Dogecoin price increase.
An example of this was seen in mid-October - four days later, DOGE had risen 26%. While that tweet was not the sole reason (Bit (BTC) was also rising at the time), it has boosted the profile of the most popular Memecoin.
The formation of consolidation ranges after price surges at the end of previous cycles has been highlighted on the chart, and they have relatively similar lifespans. The breakout in early 2024 and the subsequent correction somewhat mirrored the February 2021 run-up to $0.088. A 1,400% surge over six weeks was also witnessed.
While that is unlikely to repeat, a similar performance for Dogecoin in the coming months would take it to $1.334. A rather optimistic target, but it may be too modest for this run. Musk's tweets could be a game-changer, as well as capital shifting from BTC to top-performing Altcoins towards the end of the cycle.
