Pro-crypto U.S. President Donald Trump Could Fuel Bullish Crypto Sentiment

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 upward momentum began after the U.S. presidential election results were announced on November 5.

With regulatory clarity already benefiting crypto assets, such as Ripple’s stablecoin RLUSD, other cryptocurrencies are expected to thrive as well. Which cryptocurrencies could be the biggest beneficiaries under 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 stated to Jim Cramer, “We are gonna do something great with crypto,” speaking from the New York Stock Exchange.

During his previous presidency, Trump highlighted rising stock prices and claimed that the market was strong, asserting that America was becoming great again. In the upcoming months and years, he might leverage Bitcoin’s increasing prices to illustrate his election promises related to crypto.

One such promise included a national strategic Bitcoin reserve, with legislation introduced in the Texas House of Representatives on December 12 to establish this reserve.

The differences in price action between the previous cycle and this one are significant. A 34-week consolidation occurred earlier this year, lasting from March to early November, after hitting a new high against the USD. In 2020, BTC faced resistance at its all-time high but surged past it in under three weeks.

It then achieved nearly 400% gains before April 2021. A similar rally could push BTC close to $300k by April 2025; however, we understand that successive cycles typically take longer and yield lower percentage gains.

The previous all-time high (ATH) being broken before the BTC halving date has yet to transpire. An eight-month consolidation below those highs during a halving year is also a new occurrence. This cycle could propel BTC towards the ambitious $280k-$300k levels with President Trump in power, celebrating each new weekly ATH as a victory.

D.O.G.E. Co-head Musk Could Boost the Memecoin Market

Other influential figures may also help drive various sectors of the market higher. Recently, Murad Mahmudov emerged as a key memecoin influencer; however, none might surpass the previous cycle’s leading Dogecoin supporter. Elon Musk, the owner of X (formerly Twitter), was instrumental in Dogecoin’s ascent in the last cycle.

His extensive reach and reputation as a technological genius led many to trust his messages. When he shared DOGE-related memes or announced Tesla’s acceptance of Dogecoin as payment, these updates contributed to DOGE’s price rise. However, his influence diminished as the cycle progressed.

As co-lead of the Department of Government Efficiency (D.O.G.E.), any official mention of the department could result in Dogecoin price increases. For instance, in mid-October, a tweet led DOGE to increase by 26% four days later. While this tweet wasn’t the sole reason (Bitcoin was also on the rise), it highlighted the visibility of the popular memecoin.

The price patterns observed during previous cycles also showed remarkable similarities. The breakout in early 2024 and subsequent retracement resembled the February 2021 rally to $0.088. A subsequent 1,400% rally occurred within six weeks.

While such scenarios are doubtful to repeat precisely, a similar performance for Dogecoin in the coming months could reach $1.334, a robust yet possibly conservative target for this cycle. Musk’s tweets could significantly influence price movements, alongside the potential capital shift from BTC to high-performing altcoins toward the cycle’s end.