Dogecoin Jumps and Bitcoin's Hot Streak Continues This Week
The cryptocurrency surge carried on throughout the weekend, with Bitcoin (CRYPTO: BTC) surpassing $85,000 and the excitement around Dogecoin (CRYPTO: DOGE) still strong. The ongoing election remains a major discussion point in the crypto world, and there appears to be a clearer basis for assessing its effects on the market.
From the end of trading on Friday until 1:30 p.m. ET on Monday, Bitcoin has risen by 10.1%, Ethereum (CRYPTO: ETH) has increased by 11.6%, and Dogecoin has surged by 63%.
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This morning, MicroStrategy (NASDAQ: MSTR) revealed that it has purchased an additional 27,200 Bitcoins for $2.03 billion, increasing its total Bitcoin holdings to over $11 billion.
MicroStrategy has developed a powerful strategy for investing in Bitcoin by raising funds through selling both debt and shares. What's noteworthy for Bitcoin's price is that MicroStrategy acts as a steady buyer in the market, creating a kind of self-reinforcing effect where the price of Bitcoin tends to increase as long as the company continues purchasing at this level.
It's uncertain when the speculation surrounding Bitcoin or MicroStrategy will calm down. Currently, the company's market valuation exceeds $66 billion, yet it has just $24 billion worth of Bitcoin on its books. Investors seem to anticipate further purchases in the future, which could lead to additional share sales, but this strategy has proven successful previously.
The price of Dogecoin is climbing due to optimism surrounding Elon Musk's possible role in the government, with hopes that this could somehow benefit the cryptocurrency. While there's no proof that Dogecoin will actually gain any value if Musk has any influence on policies, that hasn't prevented traders from driving up prices in the past.
In the week following the election, numerous cryptocurrencies and stocks have surged, largely driven by speculation about potential developments in a Trump administration that is still over two months away.
In terms of significant developments, the policy landscape is beginning to shift. Candidates who support cryptocurrency have successfully secured positions in both the House of Representatives and the Senate, potentially leading to more advantageous regulations for the industry.
However, the most immediate effect is probably at the Securities and Exchange Commission (SEC), where potential candidates for roles are already being discussed. Daniel Gallagher, who is currently an attorney at Robinhood Markets, along with Hester Pierce and Mark Uyeda, are all being considered for jobs, and they each have a strong pro-crypto perspective.
It's unclear if this will result in changes to policies that would benefit Bitcoin, Ethereum, or Dogecoin.
