Why Did Dogecoin (DOGE) Jump Today?
Dogecoin (DOGE) surged 7.8% as investors anticipate lower interest rates and two successful crypto-related IPOs. The S&P 500 remained stable while the Nasdaq Composite gained 0.4%. The Federal Reserve is expected to cut rates due to a weakening job market, benefiting higher-risk assets like Dogecoin. Recent IPOs, including Figure Technology Solutions and Gemini Space Station, have boosted market confidence in crypto investing. However, Dogecoin's value is highly volatile and driven by market sentiment rather than utility.
Dogecoin (DOGE 7.84%) soared on Friday. The coin saw its value jump 7.8% in the last 24 hours as of 4:35 p.m. The move comes as the S&P 500 (^GSPC -0.05%) was little changed and the Nasdaq Composite (^IXIC 0.44%) gained 0.4%.
Dogecoin and much of the crypto market are seeing green as investors anticipate lower interest rates, and two high-profile crypto-related initial public offerings (IPOs) make a splash.
Dogecoin pops on rate cut hopes and IPOs
This week saw the last data released that the Federal Reserve will use to make its decision next week. While inflation is still hotter than the Fed would like, the central bank will likely cut rates as the job market shows significant weakness. Lower interest rates tend to lift higher-risk assets like Dogecoin.
Yesterday, the blockchain-based lending platform Figure Technology Solutions was the latest IPO to see massive success on its market debut. The company initially priced shares at $25, but the stock began trading at $36, and is currently sitting around $33.
Image source: Getty Images.
Today, the crypto exchange Gemini Space Station -- backed by the Winklevoss twins -- began trading well above its IPO price of $28 per share. The stock flew above $40 and is now sitting around $34.
Two very successful crypto-related IPOs gave the market confidence that the appetite for crypto investing remains strong.
Dogecoin is built on hype
Dogecoin is a meme coin. Its value is derived not from utility, but from "vibes." That makes it incredibly volatile and susceptible to significant price fluctuations. I would not invest in Dogecoin.
