Airdrop Army

Dogecoin, Cardano, and Shiba Inu have outrun Bitcoin in a week-long altcoin sprint, fueled by Donald Trump’s election win and a shift in regulatory forecasts. With Dogecoin skyrocketing over 80%, Cardano vaulting 85%, and Shiba Inu soaring more than 50%, the market saw Bitcoin’s 20% rise nearly dwarfed.

Memecoin Mania Fueled by Potential Musk Role

Analysts at Bitwise spotlight the altcoin rally, linking it to the anticipated regulatory ease tied to Trump’s administration. Bitwise’s André Dragosch noted that coins like Dogecoin respond sharply to shifts in regulatory expectations. Elon Musk’s possible new position as head of a “Department of Government Efficiency” has fueled rumors of policy winds favoring the quirky token.

“With Musk potentially leading this new department, sentiment lifted for tokens he’s backed before, like Dogecoin,” said Dragosch. Market whispers suggest lighter regulation could benefit not just Dogecoin but other meme-driven coins like Shiba Inu, previously seen as vulnerable to government crackdowns.

Trump-Themed Memecoins See Explosive Gains

Adding fuel to the speculative fire, election-themed memecoins have posted jaw-dropping returns since Trump’s victory. Peanut the Squirrel (ticker: PNUT), up 797%, and Department of Government Efficiency (DOGE), which soared 301%, are the top altcoin gainers, according to Coingecko. PNUT’s explosive rise comes on the back of a controversial story around a pet squirrel, seized by New York’s Department of Environmental Conservation, a symbol picked up by Republican enthusiasts. The “Department of Government Efficiency” memecoin riffs on Musk’s rumored government efficiency mission, where Musk has long expressed a desire to streamline government operations.

Bitcoin Whales Start Hoarding Amidst New Bullish Sentiment

Meanwhile, Bitcoin’s landscape is shifting with whales—holders of at least 1,000 BTC—swinging from sell-offs to a fresh accumulation spree. Bitwise Europe’s Monday report revealed a net move of 17,400 Bitcoin off exchanges last week, signaling whale accumulation. Bitcoin miners remain cautious on exchanges, dialing down selling and tightening supply-side pressure.

Derivatives Market Sees Surge in Institutional Confidence

Signs of bullish behavior are also evident in Bitcoin’s derivatives market. Funding rates for perpetual futures have jumped to levels not seen since March 2024, touching 0.04% on Bitmex and 0.03% on Binance, mirroring investor fervor. According to Deribit CEO Luuk Strijers, “Perpetual futures are outpacing spot markets, showing heightened enthusiasm among investors.”

Open interest in Bitcoin futures has surged, says Outlier Ventures’ Jasper De Maere, noting that this bullish positioning could drive the market forward. With the 3-month annualized basis for Bitcoin futures hitting 13.3%, optimism among investors hints at further gains.