Crypto Year-End Rally on the Horizon: Bitcoin and Dogecoin in Focus
Investors might see a significant crypto market rally as the presidential election results emerge in November. This event may encourage investors to turn back to riskier assets.
In the last month, several leading cryptocurrencies have experienced notable gains. As we head into the last two months of 2024, two coins particularly stand out: Bitcoin (CRYPTO: BTC) and Dogecoin (CRYPTO: DOGE).
Bitcoin’s Resurgence
Bitcoin has climbed 12% in the past month, currently trading around $67,000. This uptrend has led to growing optimism that Bitcoin might surpass its all-time high of $73,750 by year-end, potentially paving the way for a push toward $100,000 in 2025.
One key metric I’m monitoring is the Crypto Fear & Greed Index, a scale from 0 to 100 that indicates market sentiment. A lower score signifies fear, while a higher score suggests greed among investors.
For much of the last two months, this index hovered at 50 or lower, reflecting a neutral to bearish outlook among investors. This caution was understandable, given August’s “flash crash,” where many digital assets lost significant value.
However, in mid-October, the index surged into the 70s, indicating a shift towards positive sentiment—levels not seen since early this year following the debut of new spot Bitcoin exchange-traded funds (ETFs).
This change may connect to the ongoing presidential election cycle. Bitcoin has emerged as a topic in the 2024 campaigns, leading investors to prepare for a potential rally post-election. Yet, it’s crucial to remember that investor sentiment can shift rapidly; caution and thorough analysis are necessary before investing in Bitcoin.
Dogecoin’s Unexpected Rise
This year has sparked renewed interest in meme coins, with many experiencing gains of 100% or more. While Dogecoin had been relatively quiet, it has gained about 22% in the past month, showing renewed activity.
The influence of billionaire Elon Musk is hard to ignore. He remains a strong supporter of Dogecoin, and recent comments have sparked optimism among its holders.
Image source: Getty Images.
Musk has suggested he might create a new initiative called the Department of Government Efficiency (DOGE) if Donald Trump returns to office. This initiative’s potential connection to Dogecoin lends significance to its symbol in government discussions.
Additionally, at a recent Tesla (NASDAQ: TSLA) event, a dog representing the Dogecoin mascot was spotted, sparking speculation that Tesla might explore accepting Dogecoin for future payment options.
While these connections may be tenuous, they resonate strongly within the meme coin community. Currently, Dogecoin has a year-to-date increase of about 38% and could be eyeing the $1 milestone.
Bitcoin vs. Dogecoin: A Clear Choice
When comparing Bitcoin and Dogecoin, Bitcoin is the clear choice for serious investors. Dogecoin, primarily a meme coin, relies heavily on hype and speculative interest. As billionaire Mark Cuban pointed out, every meme coin carries serious risk, suggesting that Dogecoin’s value could vanish suddenly.
Conversely, Bitcoin offers a more promising long-term outlook. Its adoption among corporations and institutions is rising, and the introduction of recent Bitcoin ETFs is pushing it into the mainstream. Moreover, Bitcoin is often viewed as a reliable store of value, especially during uncertain political and economic times.
Given this information, I plan to invest in Bitcoin over the next two months, as it seems ready to make a considerable leap toward $100,000 before 2024 concludes.
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Dominic Basulto owns Bitcoin. The Motley Fool has positions in and recommends Bitcoin and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
