560 Million Dogecoin in Days: What’s Happening?

Dogecoin Whale Activity on the Rise

Cover image source: U.Today

Dogecoin (DOGE) has witnessed significant whale accumulation in the past week, with large holders acquiring 560 million DOGE. This accumulation follows a period of intense sell-off.

Crypto analyst Ali observed that the whale activity indicates renewed interest from major investors. This surge may be partly attributed to the optimism surrounding recent Dogecoin ETF filings.

ETF Filings Boost Dogecoin Sentiment

Amid the current economic climate, the Securities and Exchange Commission (SEC) has demonstrated a more favorable stance towards cryptocurrencies. This has prompted numerous asset managers to submit applications for spot ETFs linked to major cryptocurrencies, including Dogecoin.

Bloomberg's Eric Balchunas reported that there are currently up to four Doge ETF filings in progress. On Friday, Grayscale launched a new trust offering exposure to Dogecoin, with plans to convert it into a spot ETF. Additionally, Bitwise, Rex Shares, and Osprey Funds have filed paperwork for crypto ETFs that include Dogecoin.

Dogecoin Price Action

At the time of writing, Dogecoin has experienced a slight setback, declining 0.59% in the past 24 hours to $0.324. This modest adjustment reflects profit-taking following the release of recent inflation data.

Inflation data released on Friday revealed a jump in the personal consumption expenditures price index of 2.6% year-over-year in December. Core PCE rose 2.8%, meeting estimates but exceeding the Federal Reserve's target of 2%.

This report comes after the Fed unanimously voted to maintain its key interest rate at 4.25%-4.5%, pausing a series of rate cuts. The cryptocurrency market experienced a sell-off in anticipation of the Fed's announcement, with Dogecoin dropping to lows of $0.305 on January 27th.