Dogecoin Outshines Bitcoin and Ethereum: Is the Rate Cut Rally Finally Here?

Move over, blue chips—Dogecoin's stealing the spotlight.

The meme coin that started as a joke just flipped the script, posting bigger gains than Bitcoin and Ethereum combined during the latest Fed-induced frenzy. While Wall Street analysts debate basis points, DOGE holders are busy counting profits.

Rate cuts fuel risk-on madness—and nothing says 'YOLO' like a Shiba Inu-themed cryptocurrency. Traditional finance types might call it irrational, but try telling that to the portfolio that just doubled while theirs barely budged.

Because nothing captures the spirit of modern monetary policy like a digital asset literally created to mock digital assets. The irony's thicker than a central banker's speech.

Why Is Dogecoin Outshining Bitcoin and Ethereum Right Now?

There are a few factors that could be influencing Dogecoin’s (DOGE) latest price rally.

Firstly, there is a lot of talk about Elon Musk’s attorney, Alex Spiro, chairing a $200 million Dogecoin (DOGE) fund. Corporate treasuries have played a key role in this year’s market rally. Bitcoin (BTC) and ethereum (ETH) have seen incredible adoption among treasury funds. DOGE could also see a similar pattern.

Secondly, there is a very high chance of an interest rate cut later this month. Rate cuts often lead to investors taking on more risks. Dogecoin (DOGE), being a memecoin, carries a lot of risks. A rate cut could lead to the crypto market experiencing another bullish breakout. According to the CME FedWatch tool, there is a 90.1% chance of a 25 basis point interest rate cut and a 9.9% chance of a 50 basis point interest rate cut. Investors may be pricing in the rate cut probability.

There is also a chance of a spot Dogecoin ETF making an appearance sometime this year. Grayscale, Bitwise, and 21Shares have submitted their DOGE ETF applications to the SEC. An ETF approval will make DOGE the only memecoin with an ETF.