According to Cointelegraph on the 29th (local time), the price of Dogecoin surged 8 times from $0.08 to $0.08 overnight, attracting market attention.
This surge in Dogecoin occurred following retail investors’ intensive purchase of Gamestop stocks to resist short selling by Wall Street hedge funds.
The cryptocurrency industry believes that the sudden cessation of GameStop stock trading on the stock and cryptocurrency trading app Robin Hood, triggered a massive rally as investors rush to buy Dogecoin.
Source: Coin Market Cap
Some analysts found that many traders at Wall Street Beats (WSB), a group of users against Wall Street, are concentrating on buying Dogecoin and Silver due to Robin Hood’s suspension of trading in the game.
Meanwhile, during the bullish rally of Dogecoin, the price of bitcoin soared as Tesla CEO Elon Musk added a word of “Bitcoin” to his Twitter profile.
Cointelegraph interpreted that the change in Musk’s Twitter profile led to a surge in the price of Bitcoin, and some of the profits from the surge in Dogecoin were transferred to Bitcoin, which instigated the price increase.
When Dogecoin soared, some argue that the market capitalization of Dogecoin is too small to affect the price of major cryptocurrencies such as Bitcoin.
However, as Dogecoin’s daily transaction volume exceeds $5 billion fmf, the prospect that it could have an important impact on the short-term price trend of Bitcoin is gaining strength.
Based on coin market cap data, Dogecoin rose 324% to $0.054 as of 10 am New York time.