Dogecoin hasn’t been the friend of the news lately. Or ever. Most “serious” cryptocurrency traders tend to ignore Dogecoin in favor of the big four, or whatever alt coin of the week happens to be in vogue. Yet something surprising happened since the last crypto crash. While the recent bounce that brought Bitcoin up over $10,000 again was expected, what caught a lot of traders off guard was how much faster Doge recovered it’s market cap. It nearly doubled in the last week alone, compared to bitcoin’s impressive but comparatively lackluster 60% jump.
The sudden spike has more than a few investors scratching their heads. What exactly is happening to Dogecoin? Whenever I see a coin that is moving in a weird direction, the first thing I do is check its associated subreddit to see whether there was any news that missed.
Turns out there was quite a bit.
Apparently it’s not news to hardcore Dogecoin fans that this time of year held the potential for a massive run up. February 16th marks the start of the Chinese New Year. That alone doesn’t mean a price surge for Dogecoin, but this year happens to be the year of the dog. Dogecoin speculators believe that the Chinese markets will start moving heavily towards Dogecoin just based on the novelty. That seems like a pretty good bet, and apparently Dogecoin speculators aren’t the only ones who thinks so. A semi-famous Dogecoin redditor, u/dogefreedom, known for moving serious cash via Dogecoin in the name of supporting the Dogecoin community, announced a large scale Dogecoin video contest, and put up 18 million Doge of his own money to fund it.
And the contest ends in just a few days, just in time to catch the tail end of the Chinese New Year celebrations.
It’s hard to say if the contestants alone are helping drive the current Dogecoin rally. It could even be u/dogefreedom himself, building a social media frenzy in preparation for a selloff. Whatever the reason, the contest has attracted some social media talent. I encourage readers to take a few minutes to look through the entries (the one below had me laughing for a solid 5 minutes the moment the girl started running out with a Dogecoin superimposed on her face).
Traders with more tolerance for risk than I should consider putting a bet on Doge in the short term. I have a feeling the run up is just getting started.