Donald Trump-themed cryptocurrencies surged on Aug. 21 as his odds of winning the election increased and as Bitcoin held steady above $60,000.
MAGA (TRUMP) token rose by 46% to $3.88 while MAGA Hat (MAGA) rose by over 13.2%. Trumpcoin (DJT) jumped by 10% to $0.000154.
This rally coincided with rising odds that Donald Trump might win the general election. According to Polymarket, the likelihood of a return to the White House now stands at 54%. Meanwhile, rival Kamala Harris’s odds dropped to 46%. This marks a significant reversal, as she had been leading for a while amid positive press coverage.
Meanwhile, Kamala Harris-themed coins saw sharp declines, with Kamala Horris (KAMA) dropping by 25%, bringing its market cap down to $5.6 million.
Trump’s rising odds followed rumors that Robert Kennedy Jr. might step down and endorse him for the presidency. If Kennedy’s supporters shift their allegiance to Trump, he could gain an advantage in key battleground states and win over independent voters.
Harris has faced criticism for her economic plan, which she unveiled last week. Her plan involves price controls, tax increases, and more government housing. Most economists believe that these measures, particularly price controls and tax hikes, would struggle to pass in a divided Congress.
The three Trump coins also rose as Bitcoin (BTC) held above $61,000 ahead of the upcoming Jackson Hole Symposium in Wyoming.
— Banana3 (@Banana3Stocks) August 22, 2024BTC – daily chart analysis 💛
My target for this chart is 🎯$68,000
My 2nd target and I haven’t said this the entire time is I believe this is the chart that should be bookmarked to All Time Highs 👀
I have seeeeeen this movie 🎥 🍿 before! It drives and grinds… pic.twitter.com/oj2IIJR3hA
Trump meme coins future is unclear
Despite the jump on Aug. 22, political-themed tokens have been in a strong downtrend, with their combined market cap now at over $591 million.
MAGA, the largest political coin, has seen its market cap drop from $775 million to $180 million. MAGA Hat’s valuation has fallen from over $200 million to $24 million, while Doland Tremp has plummeted from $136 million to $13 million.
What is clear, however, is that these tokens will likely remain highly volatile leading up to the general election as traders react to potential events.
These coins may also perform well if Bitcoin stages a comeback and moves above its all-time high. Historically, meme coins tend to do well when Bitcoin is in an uptrend.
Factors that could push Bitcoin higher include potential Federal Reserve rate cuts, a weaker US dollar, and the ongoing stock market rally. Bitcoin often correlates with US equities, meaning it could join the ongoing rally.