Why Bitcoin, Ethereum, and Dogecoin Are Up Right this moment – Motley Idiot

Advertisements

What happened

After a day of sell-offs on Friday, the cryptocurrency market saw some recovery momentum on Saturday. Starting at 10 a.m. ET, Bitcoin (CRYPTO: BTC) increased by around 3.3% compared to the closing bell of the stock exchange on Friday. In the meantime, ether (CRYPTO: ETH) and Dogecoin‘S (CRYPTO: DOGE) Tokens rose about 6.4% and 6%, respectively, over the same period.

Crypto prices began to rise in October and continued to gain ground until the momentum reversed in mid-November. The overall cryptocurrency market continued to move lower in December as investors weighed regulatory risk factors and the possibility that digital token valuations tend towards a longer downward cycle. That being said, the cryptocurrency market looks relatively calm right now.

A bitcoin logo on a card.

Image source: Getty Images.

so what

Bitcoin hit a life high of $ 68,990.90 per token last month, but the token fell below the $ 50,000 per token mark in early December and is now trading at around $ 46,300 per coin. The cryptocurrency is down about 23% and about 33% from its peak in the last month.

Bitcoin has shown strong performance this year and is still by far the largest cryptocurrency, but there are signs that the market is shifting towards a different category of tokens. While Bitcoin can be used as a currency or a speculative investment vehicle, it seems that most of the excitement in the market has revolved around tokens associated with service and development oriented blockchain networks and applications.

In terms of dollars, Ethereum has led the cost of rotating the crypto market into application-based cryptocurrencies. The price of the network’s Ether token has risen amid the increased adoption of the network’s smart contract and application building capabilities, and some investors and analysts see this dynamic leading to “the flippening” – the moment when the market capitalization of Ethereum outperforms Bitcoin’s. The loss of only 8% in ether in the last month of declining crypto dynamics suggests that the token is gaining strength compared to Bitcoin.

Meanwhile, Dogecoin is down about 29% and about 75% from its high in the last month. Dogecoin price per token peaked at around $ 0.69 in May, but quickly lost ground as investors took profits after explosive gains. The token is struggling to regain ground as investors have generally become more risk averse and attention has shifted to other meme tokens.

What now

Despite dramatic price volatility, 2021 was a year of fantastic returns for the broader cryptocurrency market.

Bitcoin price chart

Bitcoin price data from YCharts

Despite lagging behind in other cryptocurrencies, which have seen even stronger gains this year, Bitcoin has managed to make strong gains across trading in 2021 and it remains the top cryptocurrency. The token currently has a market capitalization of around $ 892 billion, while the Ethereum Ether token has a market capitalization of around $ 472 billion. Dogecoin’s even more incredible profits have helped it reach a market cap of $ 23 billion, and it is currently the 11th largest cryptocurrency.

As we move through the end of 2021, investors are trying to analyze how to weigh risks and find new opportunities with digital tokens and blockchain-based projects. While it is widely believed that the Federal Reserve’s policies, government incentives, and other economic factors have a much greater impact on the pricing of stocks and real estate, these factors also appear to have a significant impact on the cryptocurrency market.

Just as the ability to obtain low-interest loans leaked to drive stock prices higher, it likely also played a prominent role in the strong bull market in the crypto market last year. With the Fed potentially hike rates three times over the next year and easing stimulus spending, it’s possible that crypto valuations could face declining pressure if investors generally become more risk averse. For investors looking for exposure to the cryptocurrency space, sell-offs could be good buying opportunities, but averaging cost in dollars can be less risky than making large investments at once.

This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all reflect critically about investing and make decisions that will help us get smarter, happier, and richer.


Share post on

Sonic BTC is reader-supported. When you buy through links on our site, we may earn an affiliate commission.

Elanco Animal Health Now the Most Expensive versus Dogecoin This Year – Nasdaq Dogecoin

Elanco Animal Health Now the Most Expensive versus Dogecoin This Year – Nasdaq

Here at CryptocurrenciesChannel.com, we find it interesting to track various ETF and stock prices...

By wpadminsonic164
Vitalik Buterin gives $1 billion in ETH to Dogecoin Foundation – Forbes India Dogecoin

Vitalik Buterin gives $1 billion in ETH to Dogecoin Foundation – Forbes India

Vitalik Buterin donates $1 billion in ETH to Dogecoin Foundation Although Buterin has not...

By wpadminsonic164
Vitalik Buterin Reportedly Donates $1 Million in Ethereum to Dogecoin Foundation – U.Today Dogecoin

Vitalik Buterin Reportedly Donates $1 Million in Ethereum to Dogecoin Foundation – U.Today

Yuri Molkhan Ethereum co-founder has allegedly sent a donation of $1 million worth of...

By wpadminsonic164
Dogecoin “Confirmation of Assets” to Arrive on Binance: Details – U.Today Dogecoin

Dogecoin “Confirmation of Assets” to Arrive on Binance: Details – U.Today

Tomiwabold Olajide Dogecoin remains one of the most used smart contracts among the top...

By wpadminsonic164
Is Dogecoin the Subsequent Bitcoin?  – The Motley Idiot Dogecoin

Is Dogecoin the Subsequent Bitcoin? – The Motley Idiot

Dogecoin (DOGE -2.28%) is already beating Bitcoin (BTC 0.58%) in some ways. In others,...

By wpadminsonic164
Dogecoin

Vitalik Buterin Sends 500 ETH To Dogecoin Foundation – Benzinga – Benzinga

Ethereum ETH/USD co-creator Vitalik Buterin has sent the foundation associated with Dogecoin DOGE/USD 500...

By wpadminsonic164
Summer time of Solana in full impact, whereas SOL turns Dogecoin, Star Atlas soars on takeoff – Stockhead Dogecoin

Summer time of Solana in full impact, whereas SOL turns Dogecoin, Star Atlas soars on takeoff – Stockhead

Solana just fell over Dogecoinas the high-speed blockchain backed by Sam Bankman-Fried rises to...

By wpadminsonic164
Dogecoin

Why Bitcoin, Dogecoin, and Shiba Inu All Slumped In the present day – Motley Idiot

What happened The crypto market was in full sell-off mode late Wednesday night and...

By wpadminsonic164

Latest Posts

The Seal Society: Cardano Blockchains Next Blue Chip NFT? – DigitalJournal Cardano

The Seal Society: Cardano Blockchains Next Blue Chip NFT? – DigitalJournal

The Seal Society CNFT seems to be emerging as one of the best CNFT...

By wpadminsonic164
CME Group Will Launch Micro-Sized BTC, ETH Choices Ethereum

CME Group Will Launch Micro-Sized BTC, ETH Choices

The CME Group will launch micro-sized BTC, ETH options later this month and we...

By wpadminsonic164
Tidying Up Cryptocurrency: The Energy Impacts of Blockchains Videos

Tidying Up Cryptocurrency: The Energy Impacts of Blockchains

The Subcommittee on Oversight and Investigations of the Committee on Energy and Commerce will...

By wpadminsonic164
Whale Watching: A Deep Dive Into the Portfolios of the World’s Largest Ethereum Whales Bitcoin

Whale Watching: A Deep Dive Into the Portfolios of the World’s Largest Ethereum Whales

While there's a number of bitcoin whales that often get caught by blockchain parsers...

By wpadminsonic164
10000 causes to get your Rstronaut NFT – Cardano Feed Cardano

10000 causes to get your Rstronaut NFT – Cardano Feed

Hurry up because the subscription period for our first required staking pool is closing...

By wpadminsonic164
In the midst of crypto’s ability was, Encode Club mints new web3 designers – TechCrunch Polkadot

In the midst of crypto’s ability was, Encode Club mints new web3 designers – TechCrunch

Crypto-savvy developers are in short supply these days. Blockchain startups and protocols are fighting...

By wpadminsonic164
Cardano’s (ADA) Venture Catalyst Fund8 Voting Lastly Kicks Off: What Does This Imply?  – U.At the moment Cardano

Cardano’s (ADA) Venture Catalyst Fund8 Voting Lastly Kicks Off: What Does This Imply? – U.At the moment

Vladislav Sopov Cardano (ADA) experts and enthusiasts can now support the most valuable projects...

By wpadminsonic164
Elanco Animal Health Now the Most Expensive versus Dogecoin This Year – Nasdaq Dogecoin

Elanco Animal Health Now the Most Expensive versus Dogecoin This Year – Nasdaq

Here at CryptocurrenciesChannel.com, we find it interesting to track various ETF and stock prices...

By wpadminsonic164