- Pro-crypto US President Donald Trump could fan the bullish crypto flames once he is in power
- Dogecoin is also likely to benefit greatly and could be helped by Elon Musk
At the time of writing, Bitcoin [BTC] was trading around $100,000 after strong gains over the past six weeks. This push to a higher level started after the results of the US presidential election were announced on November 5.
With regulatory clarity already benefiting crypto, such as with Ripple’s stablecoin RLUSD, other crypto assets will benefit as well. Which would be the biggest winners from a Trump presidency?
Bitcoin strategic reserve for the United States?
On Thursday, President-elect Donald Trump responded to a question about a potential Bitcoin reserve. He told Jim Cramer, “We’re going to do something great with crypto,” speaking from the New York Stock Exchange.
During his previous presidency, Trump had pointed to rising stock prices and claimed that the market was strong and America was becoming great again. In the coming months and years, he could use Bitcoin’s rising prices to make a point and justify his election promises regarding crypto.
One of these was a national strategic Bitcoin reserve, which legislation was introduced in the Texas House of Representatives to establish on December 12.
Source: BTC/USDT on TradingView
The differences between the previous cycle’s price action and this one are numerous. A 34-week consolidation after hitting a new high against the USD occurred earlier this year and lasted from March to early November. In 2020, BTC faced resistance at ATH, but shot past it within three weeks.
Then it posted a gain of almost 400% before April 2021. A similar run would see BTC close to $300,000 by April 2025, but we know that successive cycles take more time and yield less percentage gains.
The fact that the previous ATH was broken before the BTC halving date has not yet occurred. An eight-month consolidation below these half-year highs is also a new phenomenon. This cycle could be pushed to the seemingly impossible level of $280,000 to $300,000 with President Trump at the helm, announcing each new week’s ATH as his victory.
DOGE co-head Musk could be driving the memecoin market
Other influential figures or KOLs could help other sectors of the market rise. We saw it a few weeks ago Murad Mahmudov is emerging as a major memecoin KOL, but none can beat the top Dogecoin shill spot from the previous cycle. Elon Musk, owner of X (formerly Twitter) was one of the reasons behind Dogecoin’s rise last cycle.
His enormous reach and public perception of technological genius made people put a lot of trust in his words. When he shared memes about DOGE or news about Tesla accepting Dogecoin as payment, these updates contributed to DOGE’s rise. And yet its influence waned as the cycle matured.
Read Bitcoin’s [BTC] Price forecast 2024-25
As co-leader of the Department of Government Efficiency or DOGE, any official mentions of the department can lead to Dogecoin pumps.
An example of this could be seen in mid-October– Four days later, DOGE rose 26%. Although the tweet was not the only reason (Bitcoin was also popular at the time), it did increase the visibility of the most popular memecoin.
Source: DOGE/USDT on TradingView
The range building after the rallies towards the end of the previous cycles was highlighted on the chart, and they were of relatively similar age. The early 2024 breakout and retracement looked a bit like the February 2021 rally to $0.088. There was also a 1,400% rally within six weeks.
While this is unlikely to repeat itself, a similar performance for Dogecoin in the coming months would take its price to $1,334. A respectable bullish target, but possibly too conservative for this run. Musk’s tweets could be a gamechanger, as could the capital rotation from BTC to the top-performing altcoins towards the end of the cycle.