Here’s why the Bitcoin and Dogecoin prices are rocketing

a shiba inu dog looks happily at eh camera with his tongue out while his owner hods him on his chest as he sleeps on a hammock.

a shiba inu dog looks happily at eh camera with his tongue out while his owner hods him on his chest as he sleeps on a hammock.

The Dogecoin (CRYPTO: DOGE) price is up another 4% over the past 24 hours.

One Dogecoin is currently worth 6.9 US cents.

That brings the weekly gains for the meme token, which has a Shibu Inu as its mascot, to 14%. And it lifts the market cap of the world’s number 10 token to US$9.2 billion.

The Bitcoin (CRYPTO: BTC) price has also been trending steadily higher.

The world’s top and original crypto is up 6% since this time yesterday.

One Bitcoin is currently worth US$23,324. That puts Bitcoin up 20% over the past week.

So, what’s driving the Bitcoin and Dogecoin prices higher?

Bitcoin and Dogecoin price join risk asset rally

Part of the strength for the two cryptos, and indeed most altcoins over the past week, has been driven by a broader recovery in investors’ risk appetite.

The tech-heavy NASDAQ, for example, gained 3% yesterday (overnight Aussie time). The NASDAQ is now up 5% over the past week.

In 2022’s new era of high inflation and rising interest rates, the Bitcoin and Dogecoin prices have tended to be closely aligned with other risk assets.

Eyeing the eventual end to the US Federal Reserve’s current tightening cycle and the impact on cryptos, CEO of One River Asset Management Eric Peters said (courtesy of Bloomberg):

We’ll have a powerful up move after that. So we’re in that zone; this is the accumulation zone. You’re in that period of time where you’re not supposed to be selling, you’re supposed to be buying.

Dogecoin investors using the Robinhood trading platform appear to have gotten that accumulation message.

According to U.Today – citing data from crypto tracking service DogeWhaleAlert – 3.2 billion Dogecoin, worth some US$220 million at the current price, was moved by Robinhood to cold storage.

Investors tend to move their digital tokens to cold storage when they’re planning on holding onto them for a longer period of time.

The post Here’s why the Bitcoin and Dogecoin prices are rocketing appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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