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Etiket: Price

Dogecoin Bets Spike to $1.3B as Trump Popularity Sees DOGE Rocket 15%

Futures interest in dogecoin (DOGE) is swiftly rising and nearing record levels from April, thanks to renewed trading interest in the token on the possibility of its abbreviation becoming a part of Republican Donald Trump’s administration.

DOGE prices are up 15% in the past 24 hours, CoinGecko shows, after an Elon Musk appearance at a Trump rally and a later X post of himself with the DOGE avatar. Traders are terming the price spike as a play on “Trump’s popularity,” as reported.

DOGE-denominated futures have risen 33% since Sunday to 8 billion tokens as of European morning hours Tuesday. That’s just 12% away from a lifetime record of 9 billion DOGE in open interest.

In stablecoin terms, the DOGE bets have spiked from $850 million to $1.3 billion, CoinGlass data shows.

OI refers to the total number of outstanding derivative contracts, such as futures or options, that have not been settled. High open interest indicates that there is significant interest in a particular asset. When open interest increases along with rising prices, it suggests new money is coming into the market, indicating a strengthening trend – such as Tuesday’s.

Higher open interest in token can lead to increased volatility, especially as contracts near expiration. Traders might rush to close, roll over, or adjust positions, which can lead to significant price movements.

Musk has gotten closer to Trump in the past few months with increased donations and endorsements. On various talk shows, he has talked about creating a “Department of Government Efficiency,” abbreviated as D.O.G.E, in a quest to make government spending more efficient.

Trump has said he would enlist Musk to run a “government efficiency commission” if he wins a second term as U.S. president, per BBC.

Some traders have jumped on that narrative as a bullish catalyst in the near term.

“Elon is memeing the idea of a ‘Department of Government Efficiency’ into reality and is able to tie it to DOGE somehow,” influential X account @theunipcs told CoinDesk in a message. “If we get a Trump win after the U.S. elections next week, i expect an even more parabolic move in dogecoin and the ‘Department of Government Efficiency’ ETH memecoin because it becomes a certainty that the department will be set up.”

“There will likely a multi-month delay between Trump winning and his inauguration as well as such a department being actually set up, and that provides a solid trade opportunity,” @theunipcs added. The trader was among the first individuals to publicly state the D.O.G.E trade thesis.

DOGE prices are up more than 30% since CoinDesk first reported on the D.O.G.E trade gaining interest among traders.

Celestia’s TIA Braces for Price Volatility Amid $900M Token Unlock

The native cryptocurrency of data availability blockchain Celestia (TIA) braces for volatility due to its massive supply event on October 30, which will nearly double the number of tokens in circulation.

Some 175 million of previously locked-up TIA, 80% of the current supply, will be released on Wednesday, in the largest single unlocking event since the token was launched last October, Tokenomist data shows. That’s $920 million worth of tokens with prices slightly above $5 on exchanges.

Core contributors are scheduled to receive 58 million ($298 million) TIA tokens, per Tokenomist. 65 million ($332 million) tokens are allocated to early investors of the project’s series A and B funding rounds, with another 52 million ($268 million) tokens for seed investors.

Cryptocurrency projects often lock a part of the token’s supply and release it gradually to prevent early investors and insiders from selling in large quantities immediately after they get the allocations. When the tokens are unlocked, they become available to sell, and thus, such events are usually considered bearish; often they induce price drops. However, sometimes investors front-run and may sell before the unlocking happens.

In TIA’s case, prices have tumbled as much as 80% from the February peak of $21, and have consolidated in the $4-$6 range for multiple months. Meanwhile, funding rates for TIA perpetual futures sit in deeply negative territory, reaching a -90% annualized rate on crypto exchange Binance, CoinGlass data shows. This suggests traders are expecting declining prices or TIA holders are hedging their exposure leading into the unlock.

“There could be some pronounced effects,” David Shuttleworth, partner at Anagram, told CoinDesk, noting that the amount of tokens being unlocked is multiple times larger than the average daily trading volume between $50 million and $200 million over the past month. “The broader timing, however, is favorable,” he added, with bitcoin (BTC) trading near all-time highs and other majors including ether (ETH) and solana (SOL) also performing well.

Given the broad crypto market rally, the probability of TIA surprising traders with a rally following the unlock has increased, according to well-followed crypto analyst Will Clemente, founder of Reflexivity Research.

“This BTC price action has further slid the probability of Thursday’s TIA unlock being bearish towards ‘no,'” Clemente said in an X post.

“6 months of reaccumulation after 80% drawdown, ton of OTC volume, most widely telegraphed unlock in crypto history, 9 figs [figures] short, BTC nearing ATHs,” he added. Am long rn.”