Dogecoin sees a significant price increase, driven by factors such as potential interest rate cuts and political developments.
Points
- Dogecoin’s price rises 5.75% in 24 hours, reaching $0.13.
- Anticipation of interest rate cuts boosts crypto market sentiment.
Dogecoin （DOGE） has experienced a notable price increase, riding the wave of recovery alongside the broader cryptocurrency market. Several factors have contributed to this upward trend, with the most prominent being the increasing likelihood of interest rate cuts in September.
Cointelegraph
DOGE’s price has risen by 5.75% in the past 24 hours, reaching $0.13, its highest point in a month. This upward movement began on July 13, following a report that revealed weaker-than-expected job growth in the U.S. The report heightened expectations for a 25 basis point interest rate cut in September, with the probability increasing from 57.5% a month ago to 94% currently.
Lower interest rates are typically bullish for non-yielding assets like cryptocurrencies, as they reduce the opportunity cost of holding such assets. This environment has significantly contributed to DOGE’s price surge, which has risen over 40% since July 13, including the gains observed today.
DOGE’s rally has gained additional momentum from recent political developments. A failed assassination attempt on former U.S. President Donald Trump has improved his odds of winning the upcoming presidential elections. Trump’s potential return to office is seen as a positive development for the crypto market due to his pro-crypto stance.
On July 27, Trump is scheduled to deliver a keynote address at the Bitcoin 2024 conference, where he may discuss his plans for crypto-friendly regulations if reelected. The crypto community speculates that Trump might announce a strategic reserve policy for Bitcoin, similar to El Salvador’s approach of holding Bitcoin reserves.
Cointelegraph
Today’s DOGE price gains are also accompanied by a rise in open interest （OI） in the futures market, with persistently positive funding rates. The number of unsettled DOGE futures contracts reached $603.10 million on July 20, the highest in two weeks, while the futures funding rates remain positive at 0.231% per week from -0.546% two weeks ago.
Cointelegraph
The rise in OI indicates increased interest and activity in the market, with traders willing to pay a premium to hold long positions, reflecting a more optimistic outlook on DOGE’s price.
解説
- Dogecoin’s recent price surge can be attributed to favorable macroeconomic conditions and positive political developments.
- The potential interest rate cuts have created a bullish environment for non-yielding assets like cryptocurrencies.
- Trump’s pro-crypto stance and upcoming keynote address at the Bitcoin 2024 conference have fueled market optimism.
- The rise in open interest and positive funding rates in the futures market further indicate strong market sentiment for DOGE.