Dogecoin (DOGE 2.21%) is seeing significant gains in Friday trading. The cryptocurrency’s token price increased by 4.5% in the last 24 hours, as of 4:30 p.m. ET. Meanwhile, the price of Bitcoin was up 2.9%, and the price of Ethereum was up 1.7%.
Despite a significant decline in the stock market due to today’s macroeconomic news, the cryptocurrency market is proving to be quite resilient and posting gains. Dogecoin is seeing bigger gains than most major tokens, and its valuation could be boosted by a possible inclusion in a new title from Grayscale and a recent bullish forecast.
Dogecoin jumps despite macroeconomic pressures
Stocks sold off Friday after the Bureau of Labor Statistics released a report showing 256,000 jobs were created in December. Economists’ average estimate called for 155,000 jobs to be created during the period, and the stronger-than-expected results sparked fresh fears about inflation and sent stocks tumbling.
While inflationary catalysts that would cause the Federal Reserve to maintain high interest rates have generally been bearish for the crypto market, current employment numbers do not have this impact on the crypto market. As money flows out of stocks, investors could turn to cryptocurrencies as a hedge against inflation.
Additionally, Grayscale published a blog post listing Dogecoin as a cryptocurrency that could be added to a new investment product from the company. For reference, Grayscale is the company behind Grayscale Bitcoin Trust and other related titles. Dogecoin could also benefit from a recent price prediction from ProjectSyndicate published on TradingView which suggested the cryptocurrency could reach a price of $1 per token this year.
What’s next for Dogecoin?
Inasmuch as coin which is not supported by many fundamentals, Dogecoin will likely continue to see price movements in conjunction with the broader cryptocurrency market and macroeconomic trends. On the other hand, there are some promotion and adoption catalysts that could help drive up the price of its token.
For starters, Dogecoin’s ticker is the same as the acronym “DOGE” of the Ministry of Government Efficiency’s advisory commission which will be led by Tesla and X CEO Elon Musk and entrepreneur Vivek Ramaswamy under the new Trump administration. Musk has been a visible supporter of Dogecoin, and it is possible that the headlines surrounding the commission are helping to promote the cryptocurrency in a roundabout way.
Additionally, some investors are betting that Dogecoin will be included as a payment mechanism in X’s upcoming payments platform. If the social media service’s new payment system integrates the cryptocurrency, it could help drive adoption and increase the price of its token. While there is no guarantee that the meme coin will be integrated into the platform, Musk’s support for the cryptocurrency suggests that it is a feasible possibility.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool holds positions and recommends Bitcoin, Ethereum and Tesla. The Mad Motley has a disclosure policy.