Dogecoin Hits $0.21 for the First Time Since April: Why’s DOGE Going Up?

Key Takeaways:

• DOGE has risen by 25.14% in the last 24 hours, reaching $0.21, a price not seen since April.
• The increase in Dogecoin's price is primarily attributed to Bitcoin's new all-time high exceeding $75,000.
• The Republican party is expected to regain power, which is seen as favorable for cryptocurrencies.

Dogecoin (DOGE) has significantly recovered in recent hours following Bitcoin's achievement of a new all-time high exceeding $75,000, fueled by speculation that Republican candidate Donald Trump may win the ongoing U.S. presidential elections.

Data from the cryptocurrency market indicates that Dogecoin's price has surged by 25.14% in the past 24 hours after experiencing a 16.96% increase over the last week, an 82.02% rise over the previous month, and a remarkable 193.54% growth in the last year, as reported by Hedge With Crypto.

As the 8th largest cryptocurrency by market capitalization, Dogecoin has a market cap of $30.90 billion. Its trading volume in the last 24 hours skyrocketed by 219.18% to reach $9.44 billion at the time of reporting.

Related: Dogecoin Price Faces Minimal Fluctuation as Elon Musk Wins DOGE Manipulation Case

The significant uptick in the price and trading activity of the leading memecoin has prompted a closer examination of the reasons behind Dogecoin's rise today, particularly in relation to Bitcoin's performance and election dynamics.

Why is Dogecoin Going Up Today?

The price of Dogecoin is rising for several reasons. One key factor is the 2024 presidential election, which appears to favor the crypto-supportive Republican Donald Trump. Moreover, it seems likely that Republicans will regain control of the Senate, as reports indicate they are successfully flipping some seats held by Democrats.

The well-known crypto-focused prediction market, Polymarket, also displays heightened support for Donald Trump, with his odds reaching significant highs against Kamala Harris. Current reports suggest that the chances of Donald Trump winning the election exceed 99%, while Kamala Harris's odds are nearly 0%.

It is important to recall that Donald Trump and numerous GOP members have publicly expressed their support for cryptocurrencies. The former president has vowed to promote the digital assets sector, fire the SEC chair, Gary Gensler, within 24 hours of attaining the Oval Office, and mine the remaining Bitcoins in the United States, among other commitments.

Donald Trump's victory in the election, positioning him as the first crypto-friendly president in the U.S., acts as a favorable sign for the cryptocurrency market. Certain analysts believe the election's outcome could drive Bitcoin's price to $80,000 or surpass $100,000 before the end of 2024.

Meanwhile, another political factor contributing to the rise in DOGE price is the Department of Government Efficiency (DOGE) promoted by Elon Musk, which is anticipated under the new Trump administration. This initiative aims to enhance government operations and efficiency, drawing from Musk's expertise in the technology sector.

Related: How Much DOGE Does Elon Own?

DOGE Sees Increase In On-Chain Activity

The recent spike in Dogecoin's price can also be linked to a rise in on-chain activity, suggesting that significant market participants are feeling optimistic about the leading meme coin.

Data indicates that a considerable amount of DOGE is being transferred to the wallets of large holders. In particular, the total rose from 45.3 million DOGE to 431.3 million DOGE, representing a 957% increase during the timeframe analyzed.

This pattern shows that numerous big investors who hold more than 0.1% of the circulating DOGE supply are accumulating this cryptocurrency. Such accumulation is generally seen as a favorable indicator for Dogecoin's price.