Dogecoin Soars as Bitcoin Approaches $99K: The Meme Coin Comeback Explained

Meme Coin Resurgence

Meme coins are making a notable comeback after the Thanksgiving holiday in the United States, with Dogecoin (DOGE) and other meme-themed tokens experiencing significant gains as Bitcoin (BTC) aims to break the $99,000 mark after a week spent below it.

Currently, Dogecoin is priced at $0.42, marking a 7% increase in just one day, according to data from CoinGecko. This rise comes after hitting a similar price point on November 25, having dipped below it in the following days.

Volatility and Recent Gains

As a widely recognized meme coin, DOGE is known for its volatility, showcasing dramatic daily price swings. However, it has surged 149% in price over the last month, largely fueled by the support from Elon Musk and the recent election win of Donald Trump as a pro-crypto candidate. Notably, Dogecoin reached a three-year high of $0.475 last Saturday.

Other Meme Coins on the Rise

In addition to Dogecoin, several other major meme coins have shown positive movement recently. Popcat (POPCAT) is up 12%, Bonk (BONK) has increased by 13%, and both Brett (BRETT) and Pepe (PEPE) have seen 9% gains.

Liquidation of Short Positions

The ongoing surge in meme coins has caught many traders off guard, leading to substantial liquidations of short positions. Data from CoinGlass indicates that nearly $6 million in DOGE shorts and $3.3 million in Peanut the Squirrel (PNUT) shorts were liquidated in the last 24 hours alone, contributing to a total of $221 million worth of crypto futures positions liquidated, with Bitcoin shorts accounting for about $65 million.

Bitcoin's Price Movement

As for Bitcoin, it is currently trading above $98,400 and approached $99,000 earlier, briefly touching $98,685 before cooling slightly. Just last Friday, Bitcoin reached an all-time high of $99,645, coming closer than ever to the coveted $100,000 milestone.