Dogecoin Surges 10% Amid Elon Musk Endorsement, Bitcoin ETFs See $541M Outflows Pre-U.S. Election

Key Points

• Dogecoin Rally: Dogecoin rose over 10% after Elon Musk’s endorsement of his “Department of Government Efficiency” (D.O.G.E.) concept, a playful nod to the memecoin.
• Bitcoin Outflows and Mt.Gox Transfers: Bitcoin experienced a 3% decline as spot bitcoin ETFs saw $541 million in outflows, led by funds like Fidelity’s FBTC and Ark Invest’s ARKB. The selloff was compounded by Mt.Gox transferring $2.2 billion in Bitcoin, fueling expectations of selling pressure.
• Election Influence on Crypto: With U.S. election polls tightening, traders are watching for a potential crypto surge regardless of the outcome, anticipating favorable conditions for cryptocurrency under either administration.

Dogecoin (DOGE) rallied over 10% in the past 24 hours, the only major cryptocurrency in positive territory ahead of the highly anticipated U.S. election. Meanwhile, Bitcoin (BTC) and other top tokens saw declines as significant spot bitcoin ETFs reported outflows of $541 million—a record since May.

This Dogecoin surge is largely attributed to Elon Musk, who endorsed a “Department of Government Efficiency” (D.O.G.E.) as part of a Republican campaign proposal, sparking renewed interest in the meme token. Over the past month, DOGE has climbed 50% as Musk’s humorous endorsement aligns with crypto-friendly stances within the campaign.

Meanwhile, Bitcoin experienced a sharp 3% drop as the now-defunct exchange Mt.Gox transferred $2.2 billion in BTC from storage to new wallets, a move that has historically preceded creditor repayments and sell-offs. Market analysts expect short-term downward pressure if the tokens reach public exchanges.

In the ETF market, U.S.-listed spot Bitcoin funds recorded significant outflows, led by Fidelity’s FBTC with $169 million in withdrawals, and Ark Invest’s ARKB with $138 million. BlackRock’s IBIT was the exception, seeing a modest inflow of $38 million.

Market sentiment is also shaped by election polls, which have tightened considerably. Analysts note that a Republican win is traditionally viewed as more crypto-friendly, with Trump leading in past cycles as a pro-crypto candidate, making the election a major driver for digital assets. With the stage set for volatility, traders anticipate potential marketwide gains post-election regardless of the outcome.