Why Are The Bitcoin, Ethereum, And Dogecoin Prices Rising?

Overview

The prices of Bitcoin, Ethereum, and Dogecoin have seen a notable rise recently, with Bitcoin reaching a peak of $93,000. This upward trend is attributed to multiple factors, including geopolitical tensions and economic indicators that have shifted market sentiment towards riskier assets.

Market Dynamics Behind the Price Surge

The recent price increase of Bitcoin, Ethereum, and Dogecoin can be traced back to escalating tensions between the U.S. and Venezuela. The capture of former Venezuelan president Maduro has led to heightened risk sentiment among investors, prompting a renewed interest in cryptocurrencies. Market commentator The Kobeissi Letter highlighted this shift, suggesting that despite the tumultuous political landscape, risky assets are gaining traction after a decline in market activity at the end of 2025.

Additionally, the M2 money supply has seen a significant increase, now reported at $22.4 trillion, according to the St. Louis Fed. This growth in liquidity is generally considered bullish for cryptocurrencies, as some of this new money is expected to flow into the crypto market, thereby supporting asset prices.

The rising U.S. debt, currently at $38.6 trillion, also plays a crucial role in this market rally. As inflation concerns persist, investors are increasingly turning to cryptocurrencies as a hedge, further driving demand for assets like Bitcoin, Ethereum, and Dogecoin.

Furthermore, the Federal Reserve has been engaging in Reserve Management Purchases (RMP), which some experts view as a form of quantitative easing (QE). This action has been described as favorable for the prices of cryptocurrencies, as it injects additional liquidity into the economy. Notably, BitMEX co-founder Arthur Hayes has suggested that these developments could lead Bitcoin to potentially reach $200,000.

The Federal Reserve has also been active in injecting liquidity through repo operations conducted by the New York Fed, contributing to the overall positive sentiment in the crypto market.

Crypto Bulls Are Back in Control

Market analyst Ted Pilliows has indicated that the trend suggests crypto bulls are regaining control, which is further evidenced by the recent price movements of Bitcoin, Ethereum, and Dogecoin. In his observations, he pointed out that Bitcoin faces substantial sell orders between the $92,000 and $95,000 levels on Binance. He suggested that if Bitcoin surpasses the $95,000 threshold, the path to $100,000 could be relatively unobstructed.

Additionally, Pilliows noted a recovery in the Coinbase Bitcoin premium, signaling a resurgence in institutional demand for Bitcoin. Data from SoSoValue indicates that Bitcoin ETFs experienced a significant daily net inflow, amounting to $471.14 million, marking the largest inflow since December 17. Sustained inflows could lead to further price increases for Bitcoin, which would also positively affect Ethereum and Dogecoin.

At the time of reporting, Bitcoin was trading around $92,400, reflecting an increase in the last 24 hours, as reported by CoinMarketCap.

From Author

The current market dynamics indicate a complex interplay of geopolitical events and economic indicators that are contributing to the rising prices of Bitcoin, Ethereum, and Dogecoin. As investors respond to these developments, the crypto market is experiencing a resurgence that could have lasting implications.

Impact on the Crypto Market

• Increased risk sentiment may lead to higher investments in cryptocurrencies as a hedge against geopolitical tensions.
• The significant rise in M2 money supply could result in more liquidity entering the crypto market, boosting asset prices.
• Rising U.S. debt levels may encourage investors to allocate more resources to cryptocurrencies as a protective measure against inflation.
• The Federal Reserve’s QE-like activities and repo operations are fostering a more favorable environment for crypto assets.
• Institutional demand for Bitcoin appears to be recovering, which could positively influence the prices of related cryptocurrencies like Ethereum and Dogecoin.