Elon Musk-backed Dogecoin gains 25%, boosted by Trump's White House victory

Dogecoin rose over 25% on Wednesday to hit $0.2068 as Donald Trump sealed the US presidential race after breaking the 270 electoral vote majority mark. Trump, widely seen as a pro-crypto candidate, has indirectly boosted Dogecoin, with the rally also attributed to Elon Musk's open support for both Dogecoin and Trump.

Analysts believe a Trump victory could be viewed positively by the crypto community, in part due to his recent proposal to create the Department of Government Efficiency (DOGE), which he plans to hand over to Musk if elected. This move would likely increase Musk's influence in the crypto sector and potentially increase interest in Dogecoin, a token that Musk has consistently endorsed.

“Dogecoin has seen a major rally, supported by $30 million in liquidated short positions. Open interest in DOGE futures has increased from 7 billion to 8.3 billion tokens, indicating increased market activity. Additionally, “Musk’s endorsement of a “Ministry of Government Efficiency” as part of Trump’s campaign appears to have further fueled interest in the meme token,” the CoinSwitch Markets Desk said.

Donald Trump secured his entry into the White House after securing Wisconsin's swing state and securing a majority of 277 electoral votes, making him the 47th President of the United States. In addition to North Carolina and Georgia, the Republicans also conquered Pennsylvania and secured the lead in Michigan.In the last month, Dogecoin is up 84%, up 200% over the past year. Musk's support through tweets and public statements was a key driver that increased Dogecoin's popularity among investors.

Following Trump's victory, Bitcoin also set a new record, reaching a value of over $75,000 on Wednesday amid positive market sentiment. At 4:54 pm IST, Bitcoin was trading 7.6% higher at $74,082, while Ether was up 7.7% at $2,627. Dogecoin remained strong, trading 19% higher at $0.2023. Dogecoin's rally highlights its growing role in the crypto market, with Musk's influence continuing to be a key factor in investor sentiment. As the election results continue to unfold, Dogecoin's momentum could continue, especially as Musk's influence and possible regulatory changes loom in the crypto sector.

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