DOGE’s institutional moment?

January 31, 2025

Reading time: 5 minutes

Grayscale launches Dogecoin Trust, citing global financial inclusion

Key points:

  • Grayscale has introduced a new Dogecoin Trust, positioning DOGE as more than just a memecoin.

  • The asset manager believes DOGE’s low-cost transactions and fast speeds make it a tool for global financial inclusion.

News: Grayscale expands crypto offerings with DOGE Trust - Leading digital asset manager Grayscale has launched a Dogecoin Trust, offering institutional investors structured exposure to the popular memecoin. This move marks a significant shift in the perception of DOGE, with the firm positioning it as a vehicle for global financial accessibility rather than just an internet joke.

Rayhaneh Sharif-Askary, Grayscale’s Managing Director, Head of Product and Research, stated that Dogecoin represents a paradigm shift in global financial accessibility. She emphasized DOGE’s low transaction costs and rapid transfer speeds, making it an attractive option for international remittances, particularly in regions with underdeveloped banking infrastructure.

DOGE’s institutional moment? - The launch of the Dogecoin Trust comes amid growing institutional interest in memecoins, particularly following Donald Trump’s election victory. His administration has taken a pro-crypto stance, even forming the Department of Government Efficiency (D.O.G.E.), an apparent nod to the memecoin.

Several asset managers have recently filed for DOGE ETFs, a move that would have been unthinkable under the previous administration’s SEC leadership. With a market capitalization nearing $50 billion, DOGE is currently the largest memecoin, and Grayscale’s latest product could attract even more capital from institutional investors.

What’s next? - With Dogecoin already tripling in price over the past year, Grayscale’s trust could further fuel institutional adoption. If DOGE ETF applications gain approval, the asset could see even greater mainstream recognition, positioning it beyond its memecoin roots.

U.S. labor market report could make or break Bitcoin’s February momentum

Key points:

  • Bitcoin’s February trajectory depends on the US labor market report set for February 7, which could impact investor sentiment.

  • Analysts suggest BTC must hold above the $101,000 support to avoid a possible drop below $96,000.

News: Bitcoin awaits labor market data for directional cue - Bitcoin’s price movement in February will largely depend on the upcoming US labor market data, with analysts highlighting its potential impact on investor sentiment and Federal Reserve policy expectations.

The US Bureau of Labor Statistics is scheduled to release its labor market report on February 7, 2025, and experts predict the findings could be a key driver for Bitcoin’s momentum. According to Ryan Lee, Chief Analyst at Bitget Research, a strong labor market would likely reduce the probability of Federal Reserve rate cuts, possibly leading to downward pressure on Bitcoin prices. Conversely, signs of labor market weakness could support the case for rate cuts, which may create a more favorable environment for BTC.

Despite a 13% gain in January, Bitcoin has struggled to sustain upward momentum, slipping 0.5% over the past week. A looming technical reversal pattern suggests that BTC could dip below $96,000 unless it holds above the critical $101,000 weekly support level.

What’s next for Bitcoin? - The labor market report could act as a catalyst for Bitcoin’s price movement in the coming months. Analysts suggest that a 4.1%-4.2% unemployment rate would be the “sweet spot” for Bitcoin, increasing its likelihood of rallying in February and March. However, a significantly higher rate could introduce uncertainty, impacting BTC’s price trajectory.

Meanwhile, broader macroeconomic conditions continue to play a role in Bitcoin’s price movements, with traders closely watching the Federal Reserve’s monetary policy. Current market estimates from CME Group’s FedWatch tool indicate that the next US interest rate cut is expected on June 18, 2025, a factor that could influence long-term Bitcoin price action.

With economic uncertainties ahead, Bitcoin traders will be looking to next week’s labor data for signs of the next major move.

XRP struggles to break ATH as investor losses mount

Key points:

  • XRP remains in consolidation, sitting 10% below its all-time high while transaction losses impact investor confidence.

  • Long-term holders remain in profit, signaling stability, but losing the $2.95 support level could push XRP down to $2.73.

News: Investors weigh XRP’s path to a new ATH - XRP has been consolidating for the past two weeks, struggling to gain momentum for a breakout to a new all-time high (ATH). Despite holding above key support levels, increasing transaction losses are eroding investor confidence.

On-chain data reveals that XRP’s recent transactions have been dominated by losses. With price movement stagnating, many traders have been moving their holdings, further contributing to a cycle of selling pressure. This has dampened overall market sentiment, making it more challenging for XRP to gather the momentum needed for a sustained rally.

Long-term holders provide stability, but risks remain - Despite short-term losses, long-term holders (LTHs) continue to remain in profit, benefiting from XRP’s broader price appreciation. Their decision to hold rather than sell has helped stabilize the market, preventing a sharp correction. This behavior signals confidence in XRP’s long-term potential and could be key to sustaining the current uptrend.

However, if selling pressure intensifies and long-term holders begin offloading their assets, XRP’s bullish outlook may weaken. A decline in on-chain engagement or investor participation could extend the consolidation phase or push the price lower.

What’s next for XRP? - XRP’s current uptrend remains intact as long as it holds above the $2.95 support level. A strong defense of this level could propel the altcoin past the $3.40 resistance, setting the stage for a new ATH.

However, if XRP fails to maintain support at $2.95, it risks a decline toward $2.73, which could delay its next rally. Investors will be watching whether the market’s buying interest is strong enough to push XRP into price discovery or if continued losses will force a deeper correction.

Stablecoin market surpasses $200B: Is a crypto rally on the horizon?

Key points:

  • Stablecoin market cap hits a record $200 billion, adding nearly $40 billion since Trump’s election win.

  • Tether (USDT) leads with $139 billion, while Circle’s USDC has surged 48% in liquidity growth.

  • Rising stablecoin liquidity suggests fresh capital entering crypto, hinting at a potential market-wide upswing.

News: Stablecoin expansion signals crypto growth potential - The market capitalization of stablecoins has soared past $200 billion, marking a new all-time high and fueling expectations of a broader crypto rally. This surge comes as stablecoins—digital assets pegged to traditional currencies—continue to gain traction as a crucial liquidity source in the market.

Since early November, when Donald Trump secured his U.S. election victory, the stablecoin market has grown by approximately $37 billion, per data from CryptoQuant. Analysts view this expansion as a leading indicator of potential price increases across the crypto sector.

Stablecoin liquidity trends and market implications - Tether’s USDT remains the dominant stablecoin, commanding $139 billion in market cap—a 15% increase since November. Meanwhile, Circle’s USDC has demonstrated even stronger growth, rising 48% to reach $52.5 billion over the same period.

According to CryptoQuant’s latest report, the return of stablecoin liquidity could be a precursor to Bitcoin’s next leg up, as these assets often serve as a gateway for new capital entering the crypto market.

USDT’s 30-day liquidity has flipped positive, rebounding from a 2% contraction earlier in the year, while USDC’s liquidity is up 20%—its fastest growth rate in a year. This shift in liquidity could signal fresh investor confidence, potentially setting the stage for another major crypto price movement.

In comparison, Bitcoin (BTC) has climbed over 50% since November, while the total crypto market capitalization has surged from $2.2 trillion to $3.5 trillion, according to TradingView’s Total Index.

What’s next? - With the stablecoin market showing renewed liquidity growth, analysts will be watching closely for signs of capital rotation into major crypto assets. If the trend persists, Bitcoin and altcoins could see another breakout rally in the coming weeks.

Crypto scams uncovered

  • My Big Coin: This was promoted as a cryptocurrency with a wide range of uses, including as a store of value and payment method. In 2018, it was exposed as a fraud, and its founder was charged with wire fraud. The company stole over $25 million from investors, and the so-called "coin" had no actual value or underlying technology.

  • Squid Game token: In 2021, based on the popular Netflix series Squid Game, this token offered users the chance to participate in a play-to-earn game. However, shortly after it went viral, the developers executed a "rug pull", draining the liquidity and leaving investors with worthless tokens. The scam resulted in a loss of $3.3 million, and the developers vanished without a trace.

  • Thodex: Thodex was a cryptocurrency exchange in Turkey that disappeared in 2021 after its founder, Faruk Fatih Özer, executed a $2 billion exit scam. The exchange shut down abruptly, and users were left unable to access their funds. The scam affected hundreds of thousands of investors, and the founder fled the country. This event led to significant regulatory scrutiny in Turkey regarding crypto exchanges.

Top 3 coins of the day

JasmyCoin (JASMY)

Key points:

  • At press time, JASMY was trading at $0.033, reflecting a 7.45% increase over the last 24 hours.

  • It was the biggest gainer and one of the trending cryptocurrencies on CoinMarketCap.

What you should know:

JASMY experienced a notable 7.45% surge in its price, closing at $0.033. On the daily chart, the Bollinger Bands indicated increased volatility, with the price hovering near the upper band. This suggests a significant buying momentum driving the recent price spike. The RSI climbed to 57.68, crossing above the neutral 50-level, hinting at growing bullish strength. This aligns with the increased trading volume observed over the past 24 hours, reinforcing the likelihood of sustained bullish activity. Immediate resistance lies at $0.035, which coincides with the upper Bollinger Band, while support is positioned around $0.028, near the lower band. Traders should closely monitor these levels as a breakout above resistance could fuel further upward momentum, while a rejection may trigger short-term corrections.

Stellar (XLM)

Key points:

  • At press time, XLM was valued at $0.4249, marking a slight dip of 0.86% in the past 24 hours.

  • The token gained attention as one of the top trending cryptocurrencies on CoinMarketCap.

What you should know:

Over the last 24 hours, XLM saw a marginal price decline, closing at $0.4249. Its movement below the EMA (9) at $0.4184 highlights prevailing bearish pressure in the short-term outlook. The MACD indicator confirmed this bearish sentiment, with the MACD line at -0.0041 resting under the signal line at 0.0016. However, the tapering red bars on the histogram hint at a potential slowdown in downward momentum. Volume remained steady but lacked the surge required for a decisive breakout. Key support rests at $0.4100, while resistance lies near $0.4400, closely aligning with the EMA (9). A recovery above $0.4400 could signify a bullish turnaround, providing an entry point for traders. Conversely, a drop below $0.4100 might reinforce the ongoing bearish trajectory, warranting caution.

Fartcoin (FARTCOIN)

Key points:

  • At press time, FARTCOIN was trading at $1.035, reflecting a 1.14% decline.

  • The token stood out as the biggest loser on CoinMarketCap over the last 24 hours.

What you should know:

FARTCOIN experienced a bearish trend in the last 24 hours, with the price closing at $1.035. The Parabolic SAR indicator displayed dots above the candlesticks, signaling a persistent downtrend and consistent selling pressure. The Awesome Oscillator (AO) presented dominant red bars, showcasing strong bearish momentum, though some green bars hinted at minor recovery attempts. However, these bullish moves lacked the volume to alter the prevailing trend. Trading volume saw an uptick but reflected more sell-side activity, adding to the downward pressure. Key support for FARTCOIN lies at $1.000, while immediate resistance is seen around $1.100. If the price drops below $1.000, the token could extend its losses toward the $0.900 level. Alternatively, breaking above $1.100 might provide a bullish reversal opportunity for traders, contingent on strong buyer interest.

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