Dogecoin Price To Outperform Bitcoin: Eyeing 2021 Highs?

• Institutional demand, especially from Bitcoin ETFs, has influenced Dogecoin whale activity.
• Bitcoin hit a new ATH at $108.9K, while the Dogecoin price witnessed a 110% surge in six weeks.

The crypto market has outperformed in the past few weeks. Since the U.S. election results, Bitcoin’s price has risen to even the $100k mark. Traders are optimistic that Trump will lead to a change in regulation, which has been favorable for the asset class.

However, Bitcoin is not the only cryptocurrency with a positive appreciation. The memecoin leader ‘Dogecoin’ has done just that, surged after the election, outperforming Bitcoin.

In the past six weeks, the Dogecoin price has seen a 110% surge, making its 52-week high of $0.4830. However, it retraced significantly, trading at $0.3131 at press time.

Meanwhile, the Bitcoin price surged about 30% in the same period. Furthermore, it reached its high of around $108.6k and dropped to $96K at press time.

Bitcoin achieved a new ATH this month, but DOGE has not retested its 2021 highs. Despite this, the DOGE traders made significant profits. With the industry starting to kick into high gear, which is the better buy?

Whale Activity and Institutional Influence: The Common Thread

Since the approval of Bitcoin ETFs earlier this year, institutions have been the main driver of the Bitcoin price surge. Meanwhile, the volume of Dogecoin transactions carried out by the major participants also closely mirrors shifts in the ETF indicators.

Regarding whale activity, recent data showed that whales bought over a quarter of a billion DOGE tokens. This buying happened during the recent drawdown.

It is unsurprising that Bitcoin also recorded a recent increase in accumulation when its price was below $95,000. The growth that saw it reclaim the $99,158 level during writing was driven by aggressive whale action.

IntoTheBlock data revealed that large holder flows rose from 1,490 BTC on December 19 to 15,260 BTC on December 20. This is attributed to increased outflows from large holders in the same period.

Outflows remained lower at 12,820 BTC as of 20 December, confirming more buying pressure than sell pressure. However, ETF data remained negative on Thursday and Friday for the first time since the start of December.

Which To Buy: Dogecoin or Bitcoin?

The daily timeframe of Bitcoin shows that it has relative strength and has surged steadily in comparison with Dogecoin. However, Dogecoin’s price has outperformed Bitcoin’s, giving considerable returns in the past few weeks. It has a volatile structure and still has not reached its 2021 peak.

Generally, traders prefer Dogecoin over Bitcoin as it is known for its wild swings. On the other hand, long-term investors prefer Bitcoin, as it continues to reach new highs and remains persistent.

But what’s next for Bitcoin and the Dogecoin price as 2025 rolls in? A recent Glassnode analysis highlighted that the 2024 bull market was said to have endured only minor dips. This is unlike the previous bull markets, which saw the cryptocurrency experience significant pullbacks.

Therefore, weaker selloffs are caused by increasing institutional interest and high demand for Bitcoin ETFs. These factors have added to the high demand and enticed more bullish sentiment.

The DOGE price has retested the 50-day EMA support zone and is ready for a bounceback. On the other hand, the Bitcoin price stalled near $96K and could continue to exhibit outperformance. If the link between DOGE and BTC holds, the Dogecoin price may be poised for future bull markets.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.