Here’s why the Dogecoin price has had such a great week

The Dogecoin (CRYPTO: DOGE) price is down 1% since this time yesterday but remains up 5% over the full week.

At the time of writing, the crypto – which features a Shiba Inu as its virtual mascot — is trading for 7.11 US cents. That gives Dogecoin a market cap of US$9.44 billion, making it the 11th biggest crypto in circulation.

As you’d likely expect, there was plenty of volatility on display over the week, with the Dogecoin price trading as low as 6.74 US cents and as high as 7.39 US cents, a range of 10%, according to data from CoinMarketCap.

While the 4% weekly gain will certainly be welcomed by crypto investors, the meme token has a long way to go to recoup its 8 May 2021 all-time highs of 73.76 US cents.

What helped drive the Dogecoin price higher this week?

The Dogecoin price looks to have received some healthy tailwinds on two fronts.

First, the broader rally in risk assets that ensued after inflation figures out of the United States came in lower than consensus expectations.

While the tech-heavy NASDAQ has given back some of those gains, the index (a good gauge of investor risk appetite) is up 1.4% over the week.

The resurgent risk appetite may be temporary, but it’s seen the majority of cryptos gain over the week.

The Bitcoin (CRYPTO: BTC) price is up 4% over the past seven days. One Bitcoin is currently trading for US$23,960.

And when Bitcoin rises, the price of altcoins like Dogecoin tend to follow suit.

Bitcoin gets a lift from Blackrock

The Bitcoin price, and by correlation the Dogecoin price, also received a boost this week from BlackRock, the world’s largest asset manager.

Yesterday (overnight Aussie time), BlackRock revealed it will offer its institutional clients the option to invest in a new, private Bitcoin trust.

According to BlackRock (courtesy of Bloomberg):

Despite the steep downturn in the digital-asset market, we are still seeing substantial interest from some institutional clients in how to efficiently and cost-effectively access these assets using our technology and product capabilities.

Though BlackRock is currently limiting its exposure to Bitcoin, the Dogecoin price leapt to seven-day highs following the news.

The post Here’s why the Dogecoin price has had such a great week appeared first on The Motley Fool Australia.

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More reading

• Why Ethereum, Bitcoin, and Dogecoin jumped this morning
• Why Bitcoin and Ethereum are rising today
• Why this Bitcoin maximalist says all other ‘crypto is a scam’
• Why Bitcoin, Ethereum, and Shiba Inu are falling today
• Can the Bitcoin price reach US$30,000 again in 2022?

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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