Bitcoin or Dogecoin: Unraveling the Superior Cryptocurrency Investment for 2024

Key Points

• Bitcoin (BTC) and Dogecoin (DOGE) have coexisted in the market for over a decade, exhibiting distinct characteristics while also sharing similarities.
• Short-term predictions indicate a price upswing for Dogecoin and a potential downturn for Bitcoin.

Bitcoin vs. Dogecoin: A Comparative Analysis

Bitcoin and Dogecoin share a fundamental similarity in their use of the Proof-of-Work (PoW) consensus mechanism, resulting in a reliance on mining rather than validators.

The primary distinction between the two lies in their supply. Dogecoin's supply is unlimited, while Bitcoin's is capped at 21 million coins, making it a scarcer asset.

Price Analysis

As of the date of writing, DOGE traded at $0.12, representing a 38.19% year-to-date (YTD) increase. Bitcoin, on the other hand, was valued at $61,579, a 39.42% YTD increase.

Correlation Between Bitcoin and Dogecoin

The correlation between Bitcoin and Dogecoin is strong, with a coefficient of 0.98. This coefficient indicates that the prices of these cryptocurrencies tend to move in tandem, suggesting that investments in both coins since the beginning of the year would have yielded similar returns. However, Bitcoin's returns have been marginally higher.

Short-Term Predictions

According to an analysis of the In and Out of Money Around Price (IOMAP) data, Bitcoin may experience a further decline, potentially falling below $60,000.

In contrast, Dogecoin's support at $0.12 suggests a potential for short-term price increases.

The possible target range for Dogecoin is between $0.13 and $0.15, indicating that the memecoin may outperform Bitcoin in the short term.