- Pro-crypto U.S President Donald Trump could fan the bullish crypto flames once in office
- Dogecoin is also highly likely to benefit enormously and could be aided by Elon Musk
At the time of writing, Bitcoin [BTC] was trading near the $100k-mark after strong gains over the past six weeks. This impulse move higher began after the U.S presidential elections results were called on 5 November.
With regulatory clarity already benefiting crypto, such as with Ripple’s stablecoin RLUSD, other crypto assets are set to benefit too. Which ones 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 regarding a potential Bitcoin reserve. He said to Jim Cramer, “We are gonna do something great with crypto,” speaking from the New York Stock Exchange.
During his previous presidency, Trump had pointed to rising stock prices and asserted that the market was strong and America was becoming great again. In the coming months and years, he might use Bitcoin’s rising prices to make a point, vindicating his election promises related to crypto.
One of them was a national strategic Bitcoin reserve, with legislation introduced in the Texas House of Representatives on 12 December to establish this.
Source: BTC/USDT on TradingView
The differences between the previous cycle’s price action and this one’s are many. A 34-week consolidation after making a new high against USD came earlier this year, lasting from March to early November. In 2020, BTC faced resistance at ATH, but blasted past it in under three weeks.
Thereafter, it went on to make close to 400% gains before April 2021. A similar run would take BTC close to $300k in April 2025, but we know that successive cycles take more time and produce less percentage gains.
The previous ATH being broken before the BTC halving date arrived has not yet occurred. An eight-month consolidation under those highs in a halving year is also a new phenomenon. This cycle might be driven to the seemingly impossible $280k-$300k levels with President Trump at the helm, heralding each new week’s ATH as his victory.
D.O.G.E. co-head Musk could drive the memecoin market
Other influential figures or KOLs could help drive other sectors of the market higher. A few weeks ago we saw Murad Mahmudov emerge as a key memecoin KOL, but none might beat the previous cycle’s top Dogecoin shill spot. Elon Musk, owner of X (formerly Twitter) was one of the reasons behind the rise of Dogecoin during the previous cycle.
His vast reach and public perception of technological genius meant people put a great deal of faith in his words. When he shared memes related to DOGE or news of Tesla accepting Dogecoin as payment, these updates contributed to DOGE’s rise. And yet, his influence waned as the cycle matured.
Read Bitcoin’s [BTC] Price Prediction 2024-25
As co-lead of the Department of Government Efficiency or D.O.G.E., any official mentions of the department have the capability to lead to Dogecoin pumping.
An example of this was seen in mid-October– Four days later, DOGE was up 26%. Although the tweet was not the only reason (Bitcoin was also pumping at that time), it did raise the visibility of the most popular memecoin.
Source: DOGE/USDT on TradingView
The range formation after the rallies towards the end of the previous cycles was highlighted on the chart, and they had a relatively comparable age. The breakout in early 2024 and retracement was a bit like the February 2021 rally to $0.088. A subsequent 1,400% rally was seen in six weeks too.
While that is unlikely to repeat, a similar performance for Dogecoin in the coming months would take it to $1.334. A respectably bullish target, but possibly too conservative for this run. Musk’s tweets could be a game changer, as could the capital rotation from BTC to top-performing altcoins towards the end of the cycle.
