Dogecoin, Cardano, and Shiba Inu Rally Past Bitcoin

Dogecoin, Cardano, and Shiba Inu have outperformed Bitcoin over the past week, driven by an altcoin rally following decreased regulatory uncertainty after Donald Trump’s election victory, analysts say.

Price Surge

• Dogecoin surged over 80%
• Cardano climbed more than 85%
• Shiba Inu rose over 50%
• Bitcoin gained around 20%

According to The Block’s Price's Page, altcoins appear more reactive to changes in regulatory outlook.

Impact of Trump's Win

André Dragosch, Bitwise European Head of Research, noted that the prospect of Donald Trump’s administration may lift sentiment for tokens like Dogecoin, especially with Elon Musk potentially involved. The anticipated lighter regulatory approach could enhance the appeal of memecoins like Dogecoin and Shiba Inu, which were previously seen as vulnerable under stricter regulations.

Bitwise Europe analysts reported that approximately 80% of examined altcoins have surpassed Bitcoin’s performance over the past week. Additionally, some election-themed memecoins such as Peanut the Squirrel (PNUT) and Department of Government Efficiency (DOGE) saw gains of 797% and 301%, respectively, since Trump’s win.

Whale Activity and Futures Trends Indicate Sustained Market Optimism

Accumulation Trends

Recent reports from Bitwise Europe indicate that Bitcoin whales—entities holding at least 1,000 BTC—have transitioned from selling to accumulating Bitcoin. Last week, whales moved a net -17,400 BTC off exchanges, indicating renewed accumulation. Bitcoin miners remain inactive on exchanges, which helps stabilize prices.

Futures Funding Rates

There has been an increase in Bitcoin’s perpetual futures funding rates, reaching levels unseen since March 2024. Currently around 0.04% on Bitmex and 0.03% on Binance, these rates show strong bullish sentiment among leveraged traders.

Luuk Strijers, CEO of Deribit, stated that the high funding rate implies growing confidence in the markets, particularly from institutional investors. He noted that perpetual futures are outperforming spot markets, indicating heightened investor enthusiasm.

Jasper De Maere from Outlier Ventures observed a significant rise in open interest for Bitcoin futures, suggesting an increase in bullish positioning. The 3-month annualized basis for Bitcoin futures recently reached 13.3%, the highest since June 2024, reflecting optimistic medium-term investor outlooks.