Dogecoin Surges as Meme Coins Rally with Bitcoin Nearing $99K
The meme coin sector, including Dogecoin and Popcat, rebounds as Bitcoin approaches $99K post-Thanksgiving. Dogecoin rises to $0.42, a 7% gain, influenced by Elon Musk’s support. Major liquidations occur for short-sellers amid broader price increases in crypto. Bitcoin prices near historical highs lead to significant trading shifts.
Following the Thanksgiving holiday in the United States, the meme coin market has experienced a resurgence, with Dogecoin (DOGE) and other similar tokens witnessing notable price increases. As Bitcoin (BTC) approaches a price of $99,000, trading at approximately $98,400, Dogecoin has reached $0.42, marking a 7% increase in value according to CoinGecko. This resurgence comes after Dogecoin, known for its volatility, had remained below this price level since November 25, 2023.
In recent weeks, Dogecoin has posted impressive gains, reflecting a 149% increase in price driven by prominent supporter Elon Musk’s involvement with pro-crypto presidential candidate Donald Trump. Last weekend, Dogecoin peaked at a three-year high of $0.475. Other meme coins have also enjoyed gains, with Popcat (POPCAT) climbing 12%, Bonk (BONK) rising 13%, and both Pepe (PEPE) and Brett (BRETT) experiencing increases of approximately 9%.
This market movement has resulted in significant losses for traders who bet against these meme coins. Data from CoinGlass reveals that nearly $6 million worth of DOGE shorts and approximately $3.3 million in Peanut the Squirrel (PNUT) shorts were liquidated in the past 24 hours. Overall, during this period, crypto futures valued at $221 million have been liquidated, predominantly in Bitcoin shorts totaling around $65 million.
The recent trends highlight a broader appetite for risk in the cryptocurrency market, coinciding with Bitcoin’s price nearing its historical peak of $99,645, and suggesting a potential approach to the long-sought $100,000 milestone.
The current surge in the meme coin market follows a period of low trading volumes and price stagnation during the days leading up to Thanksgiving. Dogecoin, which has gained notoriety not only as a cryptocurrency but also as a cultural phenomenon, remains the foremost example of a meme coin. Its price fluctuations are often influenced by social media sentiment and endorsements from high-profile figures, notably Elon Musk. The cryptocurrency landscape has seen substantial volatility recently, with Bitcoin’s price movements impacting other digital currencies, including meme coins. As Bitcoin tests new price thresholds, the correlated movements of altcoins are becoming increasingly pronounced, highlighting the interconnected nature of the cryptocurrency market.
In summary, the recent rise of Dogecoin and other meme coins is reflective of a larger trend in the cryptocurrency market following the Thanksgiving holiday. With the influence of notable backers and increasing prices across the board, traders have been forced to reevaluate their positions, often resulting in significant liquidations for those who bet against these assets. As a consequence of Bitcoin’s proximity to its all-time high, the entire meme coin market has experienced a rebound, suggesting ongoing volatility and opportunity for investors.
Original Source: decrypt.co
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