Cryptocurrency markets have witnessed sharp corrections in recent hours, after major currencies were affected by the statements of President-elect Donald Trump, supporting the sector. Bitcoin, which had recorded a significant rise in recent days, declined during Wednesday’s trading.
Trump’s statements and their role in market movements
Immediately after Trump’s victory in the November 5 elections, cryptocurrencies began to rise significantly. The president-elect’s statements supporting the cryptocurrency sector contributed to boosting confidence in the markets, prompting many traders to increase their investments in Bitcoin and other cryptocurrencies.
During this period, Bitcoin recorded gains estimated at about 31%, reaching a record high of $89,968 on Tuesday. However, once the markets began to analyze the long-term impact of the statements, the major currency witnessed a slight decline in the following hours.
The sharp decline in Bitcoin price
Bitcoin fell by 2% during the last 24 hours of trading on Wednesday, reaching a price of $87,198. This decline indicates a natural correction in the market after the sharp rises achieved by the digital currency in the past days. Despite this decline, Bitcoin remains in a high range compared to its previous levels, as its trading is hovering around record levels.
Analysis of cryptocurrency markets in the post-election period
Trump’s positive statements have increased traders’ appetite for investing in digital currencies, which has contributed to pushing many cryptocurrencies to unprecedented levels. However, the market still reflects significant price fluctuations, highlighting the volatile nature of digital markets.
At the same time, some popular meme coins, such as Dogecoin and Shiba Inu, have made significant gains. These currencies have recorded an amazing rise of up to 20% in just a few hours, reflecting the growing interest in these currencies, which were initially considered merely recreational or speculative.
Trump’s radical shift in his stance on cryptocurrency: official support and strategic plans
In a sudden and unexpected shift, President-elect Donald Trump announced his intention to establish a regulatory framework that supports digital currencies, and to create a strategic reserve for Bitcoin. In addition, he announced plans to transform the United States into a major center for this emerging sector. This radical shift comes after years of skepticism about the viability and benefits of digital currencies. However, it is believed that the large financial support he received from digital asset companies contributed to a radical change in his position.
Trump’s previous position and the evolution of the vision
In the past, Trump’s statements regarding digital currencies were conservative in nature, as he expressed his concern about the increasing reliance on these assets in the global financial system. However, in light of the economic and technological transformations that the world is witnessing, it seems that his position has clearly changed. It seems that the huge investments pumped by digital asset companies in his election campaign influenced this decision, reflecting the increasing influence on American politics.
Trump said in a statement that Tesla (NASDAQ:TSLA) CEO Elon Musk and former Republican presidential candidate and co-founder of Strive Asset Management Vivek Ramaswamy will lead the ministry. Together, they “will pave the way for my administration to dismantle government bureaucracy, cut costly spending, and restructure federal agencies.” Dogecoin surged about 20% before paring gains. It was one of the biggest winners in the post-election cryptocurrency rally, up 153% since Election Day compared to Bitcoin’s 30% gain in the same period.
Elon Musk’s New Position and Dogecoin’s Rise After Trump’s Announcement
Ahead of the U.S. election, Elon Musk hinted at his intention to lead a new government department called the Department of Government Efficiency, a name that matches the symbol for the Dogecoin cryptocurrency
Musk’s Role in the Cryptocurrency Market
Musk, who is known for his strong influence on cryptocurrencies, has previously called himself the “Dogefather,” in reference to his continued support for Dogecoin. Musk’s comments on social media, especially on the X platform (formerly known as Twitter), are a major factor that greatly influences the price movements of cryptocurrencies. Earlier this year, Musk referred to the new committee he will lead as the “Department of Government Efficiency” or “D.O.G.E.”, which sparked a wave of optimism among traders.
Dogecoin surges amid market risk-off bet
Meme coins, such as Dogecoin, are seen as an indicator of investors’ willingness to take risks in the cryptocurrency market. The increase in activity in these coins usually indicates that traders, especially individuals, are willing to invest their money in questionable assets in order to make quick gains. Dogecoin is the most prominent coin in this space, with its trading volumes increasing significantly thanks to Musk’s continued support. Following Trump’s announcement of the Department of “Government Efficiency” and Musk’s leadership role in it, Dogecoin began to see significant increases, reflecting the growing interest from traders.
Musk’s Impact on Dogecoin
Musk’s support for the currency was not just passing statements, but rather a continuous propaganda about Dogecoin on social media. In 2021, thanks to his tweets, Dogecoin saw a sharp rise, reaching an all-time high of 67 cents in May of the same year. However, when Musk appeared on “Saturday Night Live” and called the currency a “scam,” its price suddenly dropped. Despite this decline, Musk remains a major player in the cryptocurrency market, and his statements continue to have a significant impact on the cryptocurrency markets.
Bitcoin Predictions and Massive Investment Inflows
As for other cryptocurrencies, Bitcoin continues its upward trajectory amidst the prevailing optimism in the market. Recently, Bitcoin crossed the $90,000 barrier on some trading platforms such as Coinbase. This rise has sparked strong speculation among traders about the possibility of Bitcoin reaching $100,000 in the near future.
According to data from the Deribit options trading platform, bullish bets in Bitcoin options have focused on this anticipated target. Moreover, US exchange-traded funds focused on Bitcoin recorded huge financial inflows exceeding $1 billion at the beginning of this week, reflecting the great confidence that investors have in the cryptocurrency market.
Statements Boost Optimism in the Cryptocurrency Market
Trump’s statements have sparked a wave of optimism among investors and traders in the cryptocurrency market. Despite the usual market volatility, these statements have had a significant impact in pushing the values of cryptocurrencies to unprecedented levels. In the days following Trump’s announcement, major currencies such as Bitcoin and Ethereum have risen significantly. Despite this rise, there are still questions about whether the new administration will prioritize cryptocurrencies in its policies, or whether other issues such as relations with China and the global economic situation will take over the government’s attention.
Dogecoin: The Big Jump After the “DOGE” Announcement
On the other hand, the “Dogecoin” (DOGE) currency achieved a stunning rise, especially after Trump announced plans to establish a “Department of Government Efficiency” in reference to the acronym “DOGE” in his statement. This announcement sparked great interest from fans of the digital currency bearing the image of the “Shiba Inu” dog. In recent days, the currency has seen a huge increase in its value, as its price has doubled several times due to the wide demand for its trading. This rise came as a result of the interaction of meme currency traders.
