Dogecoin Price Would Likely Pump on Bitcoin ETF Approval (Op-Ed)

2023-10-19 12:39:29

TL;DR

Dogecoin’s price has shown a positive correlation with Bitcoin, especially during major events related to Bitcoin ETF applications.
Significant moments include BlackRock’s spot Bitcoin ETF filing leading to a 20% Bitcoin rally and a concurrent 36% Dogecoin price surge, as well as similar price movements following court rulings and SEC decisions.
Recent patterns indicate Dogecoin’s price may respond to future developments in the spot Bitcoin ETF situation, though past performance doesn’t guarantee future results.

Dogecoin has moved along in lockstep with Bitcoin as crypto markets wait with bated breath as institutional hedge funds hound the SEC for the go-ahead to launch a Bitcoin ETF.

If and when the Securities and Exchange Commission finally approves a spot price ETF for the world’s oldest and most trusted cryptocurrency, there’s a reasonable chance Dogecoin price might rally along with Bitcoin.

Positive Dogecoin price correlation with Bitcoin

When $8.5 trillion investing giant BlackRock filed for a spot Bitcoin ETF on June 15, BTC rallied over 20% on crypto exchanges from $25,500 to $30,749. CNBC noted:

“Investors are growing bullish about the prospects of BlackRock and other major institutional names getting involved in digital assets.”

Vijay Ayyar, head of CoinDCX, the largest crypto exchange in India, said:

“The slate of spot bitcoin ETF application announcements by larger institutions has definitely brought back bullishness into the crypto markets.”

Meanwhile, Dogecoin price on crypto exchanges pumped over 36% over the same period, from $0.06 to $0.082.

DOGE rides along on Bitcoin ETF developments

Later, on August 29, a US Court of Appeals for the District of Columbia ruled against the SEC.

The court found in favor of crypto hedge fund Grayscale that the SEC’s rejection of Grayscale’s Bitcoin ETF application was unjustified. The judge called the commission’s actions an “unlike the treatment of like kind products,” referring to previously approved Bitcoin futures ETFs.

When that happened, Bitcoin rallied again. Meanwhile, DOGE also pumped right along with BTC. Dogecoin price on crypto exchanges went from 0.063 to 0.066 as Bitcoin traded from $26,000 to $27,721.

Three days later, when the SEC pushed back the date to clarify its explanation about Grayscale’s Bitcoin ETF application, BTC and DOGE prices both fell in tandem right back to their previous levels.

It’s been a rough ride for investors, but cryptocurrency bulls are hoping that sometime in the near future, the SEC might finally throw the markets a bone.

Of course, past performance is no guarantee of future results, but there is certainly a recent pattern this year of Dogecoin price rallies and routs on new updates in the spot Bitcoin ETF situation.

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