Dogecoin, Free Ride on Bitcoin's Funding..."Jumps 5% Without a Single Penny from ETF"

▲ Dogecoin(DOGE)

Dogecoin (DOGE) once again demonstrated its nature as a high-beta asset, showing a similar upward trend to Bitcoin (BTC) even without spot ETF capital inflows.

During the first two trading days of May, $1.16 billion flowed into Bitcoin spot ETFs. This capital served as a major driving force for Bitcoin's 5.87% increase. In contrast, there were no capital inflows into the Dogecoin spot ETF sector. Nevertheless, Dogecoin rose by 5% during the same period, almost perfectly mirroring Bitcoin's trend.

Technically, both assets showed a similar structure. Both Bitcoin and Dogecoin successfully closed above their short-term 23-day moving average and medium-term 50-day moving average. However, neither has yet surpassed the 200-day moving average, considered a long-term trendline. Bitcoin's 200-day moving average is around $83,400, while Dogecoin's 200-day moving average is around $0.124.

This synchronization demonstrates that Dogecoin continues to maintain its characteristic as a high-beta asset relative to Bitcoin. When institutional funds flowing into Bitcoin boost overall market liquidity, Dogecoin rides on that sentiment, rising without direct ETF benefits. Bitcoin sets the stage for the rally by incurring costs, while Dogecoin joins the trend without an institutional invitation.

This trend raises the question of whether ETFs are a necessary condition for the rise in cryptocurrency prices. Dogecoin has shown that prices can move solely through the existing market structure, driven by large holders and retail investors, even without institutional capital inflows. Specifically, as the expectations formed by Bitcoin spot ETFs spread to other assets, it has been confirmed that assets without direct capital inflows can also experience upward pressure.

While Dogecoin rose by 65% based on its own narrative from April to May 2025, this current surge is closer to a Bitcoin-led liquidity spillover effect. As Bitcoin, backed by institutional funds, plays the role of market headliner, Dogecoin has emerged as one of the assets that reacted most strongly, even without separate ETF funds.

Ultimately, Dogecoin's current rise demonstrates that market sentiment and liquidity diffusion can act more swiftly than direct institutional capital inflows. Even without any spot ETF funds, Dogecoin, which recorded similar returns to Bitcoin, remains a representative asset in the cryptocurrency market that is highly sensitive to speculative sentiment and liquidity changes.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*