Bitcoin (BTC) and the broader crypto market appear to have gained a foothold despite the increased credit risk faced by key industry players following the collapse of FTX, but the downtrend is still There’s one factor that suggests it’s not over.
The cryptocurrency Dogecoin (DOGE) surged 40% over the past 10 days, surpassing Ether (ETH)’s 18% gain and Bitcoin’s 8% gain. Market capitalization increased 10% to $808 billion, according to CoinDesk data.
This difference is significant as the big gains of other memecoins such as DOGE and Shiba Inu (SHIB) point to a decline in the overall market.
“Every time the price of DOGE begins to rise rapidly, it is immediately followed by a market-wide crash,” said blockchain analytics firm Santiment in a market insight note. “At the moment, we see this kind of increase. The question is, is this time different?”
The chart shows that DOGE’s rise, which began as a hoax in 2013, has turned into a contrarian indicator over the past 12 months, as investors adjust their bullish positioning on Bitcoin and other cryptocurrencies. are encouraged to do so. The most notable example is his DOGE surge in late October, which ushers in Bitcoin’s FTX-induced fall to his 24-month low in mid-November.
Whether history will repeat itself remains to be seen.