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Analysts say political meme coins will remain volatile as the US presidential debate looms
On-chain experts have warned that politically themed meme coins will remain volatile for the next seven days or more as the US presidential debate approaches.
Bitfinex analysts She said PolitiFi tokens have become speculative assets for the outcome of the next elections; could therefore see dramatic rises and falls before, during and after the debate between the major candidates, incumbent President Joe Biden and former President Donald Trump.
PolitiFi token to witness the volatility
In recent months, the cryptocurrency market has witnessed the launch of several Trump and Biden-themed tokens, such as the Ethereum-based Super Trump (STRUMP) and Maga (TRUMP), the BNB Smart Chain-based Maga Hat (MAGA), and Jeo Boden (BODEN) and Doland Tremp (TREMP) based in Solana.
These meme coins have reached market caps and volumes of millions of dollars as members of the crypto community continue to trade them. Data from Coingecko’s PolitiFi token category Shows meme coins have a collective market capitalization of over $1 billion and a 24-hour trading volume of over $256 million.
The US presidential debate between Biden and Trump, scheduled to air live on June 27, will see both candidates reveal their proposed policies. The two will discuss legislative processes, likely touching on structures surrounding cryptocurrencies. Bitfinex analysts believe that discussions regarding general capital gains taxes and cryptocurrency taxation policies could interest the community and potentially impact the market.
“There could be significant movements for the ‘Politifi’ tokens during and after the debate depending on their performance as these tokens have themselves turned into speculative assets in terms of election results. What could be interesting and impact the market is the discussion on capital gains taxes in general and cryptocurrency taxation policies in particular,” the analysts said.
The crypto community supports Trump
The cryptocurrency market is currently experiencing a decline, with leading assets such as bitcoin (BTC) and ether registration losses of 10% and 8% respectively in the last month. Similarly, PolitiFi tokens such as TRUMP, MAGA, TREMP, and BODEN have fallen significantly over the past week, posting double-digit losses. Notably, there are further rumors circulating about an official DJT token on the Solana network triggered the collapse of Trump-related tokens.
Meanwhile, major members of the crypto community have announced their support for Trump due to his pro-crypto stance. Yesterday, the co-founders of the Gemini cryptocurrency exchange, the Winklevoss twins, revealed who had donated $1 million in BTC each to Trump’s campaign and would vote for him.