A detailed analysis by Trader Tardigrade has highlighted a recurring long-term rotation pattern between gold and the meme cryptocurrency Dogecoin (DOGE). The monthly chart comparison shows that periods of aggressive upside in gold have historically coincided with stagnation in Dogecoin. Conversely, DOGE's strongest price advances have typically emerged only after gold's momentum peaks and begins to fade.
The pattern is divided into two distinct phases. The "Gold mania phase / Dogecoin stagnation phase" sees capital concentrated in precious metals, with DOGE trading sideways with limited speculative interest. This is followed by the "Gold stagnation phase / Dogecoin mania phase," where, once gold's rally exhausts, speculative capital historically rotates outward, aligning with explosive upside moves in Dogecoin. This sequence was clearly visible during the 2019–2021 period, where gold's post-rally consolidation overlapped with Dogecoin's parabolic breakout.
The current market structure appears to mirror past setups, with gold in an extended high-momentum phase while Dogecoin remains comparatively muted. The analysis suggests that if gold transitions into a sideways or distribution phase, conditions may favor renewed speculative interest in Dogecoin, though this implies a sequencing effect rather than immediate upside.
This rotation dynamic underscores a broader macro trend where gold benefits first from risk aversion, while assets like Dogecoin respond later as capital rotates into higher-beta, sentiment-driven trades. The thesis was published amid market volatility, where Bitcoin dropped nearly 8% in a week, struggling to hold above $88,000, while gold and silver surged to record highs.
Dogecoin co-creator Billy Markus reacted to the market turmoil with a sarcastic post on X, sharing a meme about selling crypto to buy gold and silver. This was in response to a report from The Kobeissi Letter stating that $1.7 trillion was wiped from gold and silver's market capitalization within 90 minutes, calling it one of the largest reversals in history. Investor Robert Kiyosaki, meanwhile, celebrated gold breaking above $5,000 and reiterated his prediction for it to reach $27,000 per ounce, expressing continued distrust in fiat currencies.
