Dogecoin Melonjak Berkat Aksi 'Whale' Dan Sentimen Positif Bitcoin

Dogecoin, a crypto asset inspired by the internet meme. (Photo; Doc. TechRato)

JAKARTA - Dogecoin, a crypto asset inspired by the Shiba Inu dog meme, is enjoying a tremendous price increase. In the past week, the price of Dogecoin has increased by more than 20%, reaching an all-time high of $0.087 (Rp1,358) on February 16, 2024. What prompted this Dogecoin spike?

One of the main factors contributing to the Dogecoin increase is the "whale" activity, which is the big Dogecoin holder who makes large transactions. According to data from IntoTheBlock, a crypto analytic platform, the large number of Dogecoin transactions, which is said to exceed 100,000 US dollars (Rp1.56 billion), has increased significantly.

In the last 24 hours, there have been 1,112 major Dogecoin transactions, showing a bustling activity among the main players in the Dogecoin ecosystem. In the last seven days, this trend has intensified, with major transactions reaching 1,380 at the seven-day peak, and 959 at the seven-day low.

The volume associated with this large transaction is also astonishing. In the past day, the volume of large transactions has reached 12.63 billion DOGE, equivalent to around US$1.09 billion (Rp17.01 trillion). During the seven-day peak, this volume jumped even further, reaching 16.2 billion DOGE (approximately US$1.4 billion or Rp21.87 trillion). Even during the seven-day low, the volume remained significant with 8.8 billion DOGE (approximately US$759 million or Rp11.84 trillion).

The importance of this large transaction cannot be taken lightly, because it not only contributes to the overall Dogecoin trading volume, but is also an indicator of market sentiment and investor confidence. When "whale" engages in major transactions, it often shows their confidence in the prospects for these digital assets.

Dogecoin Follows In Bitcoin's Footsteps

Another factor that supports the Dogecoin increase is the performance of the Bitcoin market, the largest and most popular crypto asset in the world. In the past week, the price of Bitcoin has risen by 7%, reaching an all-time high of 69,044 US dollars (Rp1.08 trillion) on February 15, 2024.

The Bitcoin spike has been linked with increased adoption by institutional and retail investors, who are interested in Bitcoin potential as an alternative asset that is inflation-resistant and portfolio diversification. One proof of this adoption is the launch and growth of Bitcoin-based investment products, such as the Spot Bitcoin Exchange Trade Fund (ETF).

The Bitcoin Spot ETF is an investment product that tracks the price of Bitcoin directly, without using derivatives or futures contracts. The Bitcoin Spot ETF provides easy and secure access for investors to participate in the Bitcoin market, without having to buy or store Bitcoin directly.

Some of the Spot Bitcoin ETF makers who have obtained approval from US capital market regulators, the SEC, are iShares by BlackRock (IBIT) and Fidelity's Bitcoin ETF (FBTC), which collectively holds substantial amounts of BTC. According to data from CoinShares, the total inflow into the Spot Bitcoin ETF reached 4.69 billion US dollars (Rp73.3 trillion) on 16 February 2024.

This increase in Bitcoin has a positive impact on Dogecoin, as both have high correlations. Correlation is a statistical measure that shows how strong the relationship is between two variables. The correlation ranges between -1 to 1, where -1 means a perfect negative relationship, 0 means no relationship, and 1 means a perfect positive relationship.

According to data from CoinMetrics, the correlation between Bitcoin and Dogecoin daily prices in the last 30 days is 0.76, which shows a strong positive relationship. This means that as the price of Bitcoin rises, the price of Dogecoin tends to follow, and vice versa.