Dogecoin’s price surge is driven by interest rate cut hopes and potential pro-crypto policies under Donald Trump, leading to increased market enthusiasm.
Points
- Dogecoin’s price rose by 5.75% recently.
- Increased probability of interest rate cuts in September.
- Potential pro-crypto stance from Donald Trump boosts market optimism.
- DOGE open interest climbs to a two-week high.
Dogecoin （DOGE） has been experiencing a notable price recovery, rising by 5.75% in the past 24 hours and reaching $0.13, the highest in a month. This upward trend is fueled by several factors, including the increasing likelihood of interest rate cuts in September and potential pro-crypto policies under Donald Trump’s leadership, should he win the upcoming presidential elections in the United States.
The recent report of weaker-than-expected job growth in the US has significantly increased the probability of a 25 basis point interest rate cut in September, which is now at 94%, up from 57.5% a month ago. Lower interest rates generally favor non-yielding assets like cryptocurrencies, contributing to DOGE’s price surge of over 40% since mid-July.
The market’s enthusiasm is further amplified by the failed assassination attempt on Donald Trump, which has improved his odds of winning the November election. Trump’s recent shift towards a pro-crypto stance has fueled optimism among investors, as his potential return to office is seen as a positive development for the crypto market.
In addition to these factors, DOGE’s open interest in the futures market has climbed to $603.10 million, the highest in two weeks, accompanied by persistently positive funding rates. This increase in open interest indicates heightened interest and activity in the market, reflecting a more optimistic outlook on DOGE’s price.
Technically, DOGE’s recent gains are part of a rebound that started after the price retested the lower trendline of its rising wedge pattern. If the bullish momentum continues, DOGE could rise to $0.14 before Trump’s keynote address at the Bitcoin 2024 conference on July 27.
解説
- Dogecoin’s price surge is attributed to the increased probability of interest rate cuts and potential pro-crypto policies from Donald Trump.
- The recent job growth report in the US has boosted the likelihood of a rate cut, favoring cryptocurrencies.
- Trump’s pro-crypto stance has generated market optimism, contributing to DOGE’s price increase.
- DOGE’s open interest and positive funding rates indicate strong market activity and investor confidence.
- Technically, DOGE’s price rebound is supported by its rising wedge pattern, with potential further gains leading up to Trump’s keynote address.