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.
The BTC price has stayed mostly flat in the last few days and actually lost around 3% of value in the last 7 days. Meanwhile, on election day, the DOGE price pumped over 10%, making it one of the best-performing top altcoins globally.
Why Meme Coins Could Outperform in Both Election Scenarios
Crypto analyst Miles Deutscher shared his insights with his 555k followers on X, explaining why meme coins might be the sector to watch regardless of the election outcome.
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.”
Source: CoinMarketCap/dogecoin
The analyst 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.
Alternative Scenario and Market Dynamics
In the event of a Kamala Harris presidency, Deutscher suggests investors might 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 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.
Read also: Analyst Sees Potential for 50% Decline in Kaspa (KAS) as Price Nears Critical Support
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The post Not Bitcoin, but Dogecoin (DOGE) Price is Pumping Ahead of the US Elections – Here’s Why appeared first on CaptainAltcoin.
