Not Bitcoin, but Dogecoin (DOGE) Price is Pumping Ahead of the US Elections – Here's Why

A lot of crypto traders expected Bitcoin to lead the US election rally, but that's not the case ahead of one of the most important political events this year.

Dogecoin (CRYPTO: DOGE) price pumped over 10% on Election Day as crypto traders anticipated a rally in Bitcoin (CRYPTO: BTC) or Ethereum (CRYPTO: ETH) instead.

However, meme coins outperformed major cryptocurrencies in both scenarios, according to analysis shared by crypto influencer Miles Deutscher.

Here’s a closer look at his analysis and why meme coins may be outperforming in both scenarios.

Meme Coins Outperforming In Both Scenarios

Deutscher shared his insights with his 555k followers on Twitter, explaining why meme coins may be the sector to watch regardless of the election outcome.

If Trump Wins…

According to Deutscher, if Trump emerges victorious, DOGE could see significant momentum, particularly due to the D.O.G.E initiative. As the leading meme coin, Dogecoin’s potential rally could trigger broader attention and liquidity rotation into the entire meme sector. He likens this effect to “a spark that lights the fire.”

The analysis points out that meme coins were among the strongest performers before the election, despite experiencing recent drawdowns due to pre-election de-risking. This positioning could lead to stronger rebounds as investors scramble to reposition their portfolios in case of a Trump victory.

If Harris Wins…

In the event of a Kamala Harris presidency, Deutscher suggests investors may actually gravitate toward meme coins as a response to potential regulatory concerns around utility tokens. The fear of another Operation Chokepoint crackdown could push investors away from sectors like decentralized finance (DeFi) and toward more speculative alternatives.

Interestingly, based on price action, meme coins have demonstrated themselves to be relatively stable holds compared to many other altcoins throughout the year. This perception has gained traction among retail investors, potentially setting up meme coins as a hedge against regulatory uncertainty.

Deutscher notes that while pre-positioning now could be viable given recent market drawdowns, the real opportunity might come during or after any election-related market volatility.

The above is the detailed content of Not Bitcoin, but Dogecoin (DOGE) Price is Pumping Ahead of the US Elections – Here's Why. For more information, please follow other related articles on the PHP Chinese website!