Bitcoin (BTC) has seen a significant increase, reaching a three-month high of $70,000 and coming close to its all-time high of $73,700 from last March. In the past 24 hours, BTC has risen by 3% to $69,800. On the other hand, the CoinDesk 20 Index, which monitors the performance of 20 large-cap tokens, has experienced a more modest 1% gain during the same period. While Ethereum’s ether (ETH) has increased by 0.5%, tokens such as Polygon (POL), Near (NEAR), and Hedera (HBAR) have caused the index to decline.
Dogecoin (DOGE) has stood out in the altcoin market by surging 10% in a day. This surge was triggered by the token being mentioned during a Donald Trump campaign event, attracting the attention of traders. The connection between Dogecoin and Trump has been strengthened recently, as Elon Musk, who is involved in the Republican candidate’s campaign, proposed the creation of the “Department of Government Efficiency” (D.O.G.E.) to control U.S. government spending. Musk further amplified the excitement by tweeting a meme of himself with the DOGE avatar.
According to Paul Howard, senior director at crypto trading firm Wincent, Dogecoin’s rise is linked to Trump’s popularity. The token is now associated with the U.S. presidential outcome due to its popularity with Musk, as reflected in the betting odds on blockchain-based prediction market Polymarket, which show a 66% chance of Trump winning the election next week, up from 61% a week ago.
The surge in crypto prices coincided with gains in U.S. stock indexes, with the Dow Jones climbing by 0.7%, while the Nasdaq and the S&P 500 each gained 0.3%. Additionally, crude oil prices dropped over 5% after Israeli airstrikes against Iran did not target oil facilities, easing concerns of escalation in the Middle East.
Matthew Sigel, head of research at asset manager VanEck, believes that Bitcoin’s current setup resembles the rally seen in late 2020, which led to all-time highs. Sigel stated that this setup is very bullish for Bitcoin leading up to the election, drawing parallels to the rally seen after the 2020 November election. During that time, BTC surged by approximately 120% until the end of the year.
As Bitcoin and Dogecoin continue to make headlines, the cryptocurrency market remains dynamic and influenced by various factors, including political events and market trends. Investors and traders are closely monitoring these developments to make informed decisions regarding their crypto holdings.
