Bloomberg Executive Highlights Why Dogecoin Outperformed Bitcoin in Recent Rally

Key takeaways

• Dogecoin has performed remarkably over the past few days, surpassing Bitcoin and other top coins.
• While Bitcoin gained 18.5% in the last seven days, DOGE gained 94% over the same period, exceeding expectations.
• Bloomberg's global team leader, Michael Regan, thinks several factors drive Dogecoin's rally.

Dogecoin Hit Multi-Month Highs, Surpassing BTC in Recent Market Rally

With its recent performance, leading memecoin Dogecoin (DOGE) has captured significant attention. Following Donald Trump's election victory, Dogecoin's price rapidly increased, reaching $0.4359 on November 12, a value not seen since June 2021.

DOGE currently trades around $0.4, with a 94% increase over the past week and 245.9% in the last month.

In contrast, the price of Bitcoin, often seen as the market leader, has only surged 19% over the past week and 35.5% in the last month.

While Dogecoin price is a far cry from Bitcoin's value of $87,948, its performance has been nothing but incredible. DOGE's outperformance of BTC is quite surprising, given it's just a meme coin with little to no utility.

Bloomberg's crypto lead, Michael P. Regan, attributed this performance to high investor interest in crypto following Donald Trump's victory. In a November 12 interview, Regan highlighted various factors that could be fueling Dogecoin price rally.

What's Fueling the DOGE Rally?

One of the factors Regan mentioned that could be behind Dogecoin's rapid rise is its payment utility. Regan mentioned Dogecoin's lower transaction fees.

According to the expert, Dogecoin's transaction fees are lower than those of other cryptocurrencies, including Bitcoin. This has made it a preferred option for international payments.

For example, he mentioned that Venezuelans outside the country can send money at cheaper rates to their family and friends using dogecoin.

Also, Regan highlighted how people have developed payment apps that accept DOGE. As an example, he cited Brooklyn-based Williamsburg Pizza.

Further, Regan attributed Dogecoin's recent rally to the Elon Musk effect. He noted that Musk's liking for internet memes conforms with Dogecoin's meme nature.

During his campaign for Donald Trump's election, Musk proposed an agency called the Department of Government Efficiency, which is abbreviated as D.O.G.E. The agency aims to reduce tax expenses and government expenditures while streamlining operations.

Musk repeatedly included the Dogecoin logo (a Shiba Inu dog) alongside AI-generated images of himself when teasing about the agency on X.

His posts garnered significant attention, sparking speculations about the possibility of using Dogecoin in the Trump administration. While Musk never explicitly mentioned Dogecoin or its utility in his posts about the proposed agency, many investors believe it could bolster DOGE's value.

This belief contributed to fueling investor interest in Dogecoin, driving its price following Trump's victory.

Additionally, Regan cited how the prices of certain stocks increased more when the S&P 500 recorded a slight surge. In the same way, he said Dogecoin is more volatile than Bitcoin.

This higher volatility is why DOGE tends to rise more whenever Bitcoin's price records increase and plunge more whenever it drops.

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