‘Some crypto traders may be worrying about the end of this bull run as dog coins take off,’ warns one investor
The price of dogecoin has surged nearly 25 per cent over the last week amid a broader resurgence of the crypto market.
The meme-inspired coin was one of several so-called ‘dog coins’ that saw significant gains over the last seven days, with Shiba Inu rising by more than 30 per cent.
Similar rises in 2021 of this cryptocurrency category preceded major market downturns in 2021, leading some investors to speculate that another collapse may be on its way.
“Some crypto traders may be worrying about the end of this bull run as dog coins take off,” said investor Alex Kruger.
“Dog coins ramping up marked the end of the two 2021 bull runs. However dig in and you’ll notice this dog run just started and is news driven. The Doge run in particular looks sound to me.”
Having fallen roughly $50,000 from its all-time high of close to $69,000 last November, bitcoin is seeing more steady gains over the last few weeks.
Crypto market analysts noted that the world’s leading cryptocurrency has seen its performance increasingly mirror that of equities.
“We’ve seen crypto markets move in step with equities in recent months and this is a quantifiable signal that institutional players are more heavily invested in the sector,” said Simon Peters, an analyst at the online trading platform eToro.
“But these various movements by major players such as Abrdn and BlackRock – while not immediately supportive of price – do reflect an underlying confidence in the sector that the wider market would be wise to watch going forward.”