Why Dogecoin Is Jumping Today

Dogecoin (CRYPTO: DOGE) is seeing significant gains in Friday's trading. The cryptocurrency's token price was up 4.5% over the past 24 hours, as of 4:30 p.m. ET. Meanwhile, the price of Bitcoin was up 2.9%, and the price of Ethereum was up 1.7%.

Despite a big pullback for the stock market due to macroeconomic news today, the cryptocurrency market is proving quite resilient and posting gains. Dogecoin is seeing stronger gains than most major tokens, and its valuation could be getting a boost from possible inclusion in a new security from Grayscale and a recent bullish forecast.

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Dogecoin jumps despite macroeconomic pressures

Stocks sold off in Friday's trading after the Bureau of Labor Statistics published a report showing that 256,000 jobs were added in December. The average economist estimate had called for 155,000 jobs to be added in the period, and the higher-than-anticipated results sparked new fears about inflation and sent stocks tumbling.

While inflationary catalysts that would cause the Federal Reserve to keep interest rates high have typically been bearish for the crypto market, today's jobs numbers aren't having that impact on the crypto market. With money moving out of stocks, investors may be looking to cryptocurrencies as a bulwark against inflation.

Additionally, Grayscale published a blog post that listed Dogecoin as a cryptocurrency that could be added to a new investment product from the company. For reference, Grayscale is the company behind Grayscale Bitcoin Trust and other related securities. Dogecoin may also be getting a boost from a recent pricing forecast by ProjectSyndicate published on TradingView that suggested the cryptocurrency could hit a price of $1 per token this year.

What comes next for Dogecoin?

As a meme coin that's not backed by much in the way of fundamentals, Dogecoin will likely continue to see pricing movements in conjunction with the broader cryptocurrency market and macroeconomic trends. On the other hand, there are some promotion and adoption catalysts that could help push its token price higher.

For starters, Dogecoin's ticker is the same as the "DOGE" acronym for the Department of Government Efficiency advisory commission that will be headed up by Tesla and X CEO Elon Musk and entrepreneur Vivek Ramaswamy under the incoming Trump administration. Musk has been a visible supporter of Dogecoin, and it's possible that headlines surrounding the commission will help promote the cryptocurrency in a roundabout way.

Additionally, some investors are betting that Dogecoin will be included as a payment mechanism in X's upcoming payments platform. If the social media service's new payment system incorporates the cryptocurrency, it could help spur adoption and push its token price higher. While there's no guarantee that the meme coin will be incorporated into the platform, Musk's support for the cryptocurrency suggests it's a feasible possibility.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Tesla. The Motley Fool has a disclosure policy.