In recent months, many analysts have suggested a rise in Bitcoin (BTC) in the event of Donald Trump's victory in the American presidential elections. One week before this deadline, some of them returned to the impact of the results of these elections for the memecoin market.
Towards a drop in the capitalization of memecoins due to Donald Trump's pro-crypto policy?
In just over a week, US presidential elections will reveal their verdict. For the crypto community, the result of these elections is of particular importance. According to many analysts, the announcement of the results could have a significant impact on the price of Bitcoin (BTC) and cryptocurrencies in general.
🔎 Consult our guide to learn everything about memecoins
And memecoins will not escape this rule according to Omid Malekan, professor at Colombia Business School. The latter did not miss to share your analysis on the social network if Donald Trump were to become president of the United States again, the trend would rather be downward for memecoins “.
To further ingratiate myself with Solana fans, here's an argument of why a Trump win and/or Republican sweep (which Polymarket has at 50%) is bearish memecoins.
i) Memecoins themselves are a form of economic populism. They are a statement against the unfair (and often grievous)…
— Omid Malekan 🧙🏽♂️ (@malekanoms) October 27, 2024
Indeed, as Omid Malekan explains, if memecoins are generally associated with a meme, they can also appear “ a tool for protest, dissent or support for a cause ».
For the analyst, certain memecoins have experienced a certain growth because they would have been “ imposed on the crypto ecosystem to show their disagreement with the policy pursued by the chairman of the Securities and Exchange Commission [SEC]Gary Gensler, or the media outings of Democratic Senator Elizabeth Warren “.
In the event of a new mandate for Donald Trump, the cryptocurrency market would not have “ no reason to rebel » against his pro crypto policy. Thus, the overall market capitalization of memecoins which is currently around $61 billion would go down, because the tokens would be resold or abandoned by the community.
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A theory that divides the crypto community
Nic Carter, partner at investment fund Castle Island Ventures, responded to Omid Malekan, aligning with its market vision. “ Memecoins are largely created or acquired in reaction to the oppressive regime of the SECand investors would have less need to trade them if the regulator adopted a policy open to cryptocurrencies, » he specifies.
To note that part of the crypto community has expressed their disagreement with this theory. Thus, Murad Mahmudov, known for his positions in favor of memecoins, said that ” 99% of memecoin buyers don't care about politics at all “.
For him, the craze around memecoins is closely linked to “ the constant increase in the global money supply which aims to free up money for consumers to boost spending “. A phenomenon that will continue according to Murad Mahmudov, whether in the event of a victory for Donald Trump or Kamala Harris.
👉 Also read – Are memecoins really decentralized?
This opinion is shared by Jordan Fish, cryptocurrency trader, also known under the pseudonym Cobie. “ Memecoins will remain popular as people want to buy cryptocurrencies whose price may increase, » he insists.
For Cobie, a change in SEC policy will not encourage investors to change their habits. “ The only SEC pivot that could impact the memecoin market would be to create a crowdfunding type exemption for decentralized token projects, » concludes Jordan Fish.
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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