Dogecoin Outstrips Bitcoin, Ethereum — Analyst Says 'Relief Rally In Q4 is On The Horizon' For This Major Coin

Zinger Key Points
  • Elon Musk puts Twitter deal back on the table, sends Dogecoin soaring.
  • Risk assets buoyed by hope of a dovish pivot by major central banks.
  • Bitcoin miners on the threshold of 'acute income stress,' says on-chain analysis company.

Cryptocurrencies were seen spiking on Tuesday evening as the global cryptocurrency market cap rose 2.7% to $970 billion at 8:17 p.m. EDT.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD 3.2% 5.9% $20,286.32
Ethereum ETH/USD 2.9% 2.4% $1,363.23
Dogecoin DOGE/USD 8.55% 7.9% $0.065
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
Convex Finance (CVX) +9.5% $5.39
Dogecoin (DOGE) +8.4% $0.065
Elrond (EGLD) +6.1% ​​$55.35

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Why It Matters: Cryptocurrencies tracked gains in stocks on Tuesday, as the S&P 500 and Nasdaq closed 3.1% and 3.3% higher, respectively. At the time of writing, U.S. stock futures were marginally in the red.

The return of risk appetite was triggered by PMI numbers released this week, which indicate weakness. Traders speculated that this could prompt central banks to become more dovish.

“If that sounds like straw clutching, it's probably because it is but then, equity markets have had a rough ride of late and that can't last forever,” said Craig Erlam, a senior market analyst with OANDA. 

Notably, on Tuesday, the Reserve Bank of Australia hiked interest rates by a smaller-than-expected 25 basis points, pointing to previous substantial hikes, reported Reuters. 

“The slight disconnect between Bitcoin and other risk assets recently has been interesting. We've seen more resilience during downturns and seemingly less enthusiasm during rallies,” said Erlam, in a note seen by Benzinga.

“It will be interesting to see whether this relationship holds and what that means going forward.”

Among coins with large market capitalization, Dogecoin saw considerable gains on an intraday basis. The bellwether memecoin rose after Tesla Inc TSLA CEO Elon Musk revived the offer to purchase Twitter for $54.20 per share.

Musk, a DOGE-bull, is said to gravitate towards integrating the memecoin into Twitter should he go on to own the Jack Dorsey-founded social media platform.

Dogecoin whale transactions and funding rates spiked — both harbingers of price direction change, tweeted market intelligence platform Santiment on Tuesday.

Michaël van de Poppe said that it is time for the dollar index, a measure of the greenback’s strength against six of its peers, to see a “slight bounce.”

The Amsterdam-based cryptocurrency trader said he’s expecting bad unemployment numbers on Friday and then subsequently expects the indices to continue.

“Relief rally in Q4 is on the horizon for'' Bitcoin, tweeted van de Poppe.

Meanwhile, Bitcoin miners are on the threshold of “acute income stress,” according to the on-chain analysis firm Glassnode, which used the Difficulty Regression Model to arrive at that conclusion. 

The Model is an estimate of the all-in-sustaining cost of production for the apex coin. Glassnode tweeted that Bitcoin has been “trading very close to its estimated cost of production price since the June sell-off.” 

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