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As the results of the US presidential election approach, one analyst expresses confidence in the continued growth of memecoins, especially in the context of the ongoing political situation.
The latest social media posts on X (formerly of Twitter), Miles Deutscher asserted that dog and cat-themed cryptocurrencies will continue to outperform the broader crypto market, regardless of whether Donald Trump or Kamala Harris emerges victorious.
Dogecoin Leads Memecoins Resurgence on Election Day
Bitcoin (BTC), the largest cryptocurrency on the market, is trading near the $70,000 mark, up 2.2% over the past 24 hours, after several failed attempts to break above the all-time high of $73,700 last week.
In stark contrast, Dogecoin (DOGE), the leading memecoin by market capitalization, rose 12% over the same period, reflecting the sector’s performance against top ten cryptocurrencies.
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Deutscher suggests that if Trump wins the election, Dogecoin’s positive momentum will likely increase. He cites Trump’s proposed Department Of Government Efficiency (DOGE) plan, which he believes will increase Dogecoin’s visibility and liquidity, as a catalyst that could spark a broader expansion. rally on the memecoin site.
“DOGE as a meme leader will drive attention and exchange money in the wider meme narrative, he says.” This enthusiasm can lead to a significant contagion of speculative investment, often referred to as “fear of missing out” (FOMO).
Increased Crypto Scrutiny Under the Harris Administration?
Deutscher predicts that a Trump victory will spark a rally in altcoins, particularly memecoins, which have historically shown strength leading up to elections.
Another clear example of this is the largest tokens Blame each other The memecoin ecosystem, Dogwifhat (WIF), Bonk Inu (BONK) and Popcat (POPCAT), saw gains of 6.3%, 8% and 6% respectively, on election day, all exceeding the top ten cryptocurrencies in the market.
Deutscher also said that since many cryptocurrencies are losing ground as investors take risks ahead of the election, they are likely to face an implied bounce if Trump secures the presidency.
On the other hand, if Kamala Harris wins, the analyst foresees something different. The possibility of increased regulatory scrutiny on utility tokens may cause investors to seek refuge in others. speculative goodslike memecoins.
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Deutscher notes that under this scenario, the fear of collapse, reminiscent of chokepoint applications directed at other crypto assets, may lead investors to gravitate towards alternatives such as memecoins.
Ultimately, this change could increase the dominance of meme coins, especially if traditional sectors like it decentralized finance (DeFi) raised face.
In this case, Deutscher argues that investors may shy away from the broader altcoin market, preferring assets that have already shown solidity and strength throughout the year.
Based on price action trends, the analyst points out that some memecoins may be seen as less risky than other altcoins, a sentiment that appears to be gaining ground among retail investors.
At the time of writing, Dogecoin is trading at $0.1755.
Featured image from DALL-E, chart from TradingView.com
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