The virtual asset market has met a bullish market for the first time in a while with the 'Trump Rally'. So-called 'MEME coins' such as Dogecoin are also on the rise. However, there are also warnings that reckless investment due to the short-term surge is like 'getting on a running horse'.
As of 4 pm on the 13th, Bitcoin recorded 12,330 million won on the domestic virtual asset exchange Upbit. It is trading at 12,335 million won on Bithumb. At the same time, it showed $88,641 on the virtual asset ticker site CoinMarketCap. Bitcoin has been breaking its all-time high every day since the election of former President Donald Trump, and has risen by 30% so far. During the trading session today, the Bitcoin price 'touched' $90,000, setting a new all-time high.
Experts expect that Bitcoin will reach $100,000 in the near future. Shin Young Securities researcher Im Min-ho predicted that "based on the ratio of Bitcoin and gold prices, the highest price of Bitcoin is estimated to be between $100,000 and $120,000," meaning that there is an additional upside potential of 10-30% compared to the current level.
The recent Bitcoin rally is based on the expectation of deregulation of the virtual asset industry due to the re-election of Trump, who declared that he would become the 'Bitcoin President'. President-elect Trump has pledged to fire Gary Gensler, the chairman of the US Securities and Exchange Commission (SEC), who has been at the forefront of virtual asset regulation in this election. In particular, his pledge to use Bitcoin as a strategic asset reserve has received a great response from the market. This is because the growing distrust in the US dollar as the key currency due to the expansion of the US fiscal deficit is increasing the investment appeal of Bitcoin.
With the Trump's radical pledges, the virtual asset market, centered on Bitcoin, has regained its bullish market for the first time in 3 years. Among the altcoins (virtual assets other than Bitcoin), the rise of Dogecoin, which was supported by Elon Musk, the CEO of Tesla, who supported Trump's election campaign, is drawing attention from the market.
Yesterday, Dogecoin soared to 624 won on Bithumb. Compared to the price of around 210 won traded on November 5, just before the US election, it has risen by nearly 200%. The prospect that Dogecoin will also benefit as Musk is appointed as the head of the 'Government Efficiency Department' in Trump's cabinet has stimulated investment sentiment. Kiwoom Securities researcher Kim Hyun-jeong said, "We expect the virtual asset market to rise along with the US stock market," and "the surge in Dogecoin seems to be related to the rise in Tesla stock prices."
Domestic investors' buying pressure on Dogecoin is also fierce. Yesterday, the 24-hour trading volume of Dogecoin on Upbit reached 6 trillion won. This is three times the trading volume of Bitcoin, which was close to 2 trillion won, and is close to half of the total trading volume of 12.37 trillion won for all 959 listed stocks on the KOSPI.
However, given the characteristics of MEME coins that are prone to sharp rises and falls, investors' attention is required to the overheating of Dogecoin. In 2021, when Musk mentioned that he wanted to use Dogecoin as a payment method for the lunar exploration plan, the price soared to 716 won. However, after Tesla did not come up with any follow-up plans, the price plummeted to the 100 won level. In fact, Dogecoin was issued to satirize the virtual asset investment fever in 2013. Unlike Bitcoin or Ethereum, which are used as payment and value storage, Dogecoin has no practical use. Researcher Im warned about the overheating of MEME coins, saying, "It should be seen simply as a phenomenon, and it is difficult to have any perspective on the price forecast or judgment."
