Ethereum
Why Bitcoin, Ethereum and Dogecoin Slipped Over the Weekend
In the cryptocurrency world, Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and Dogecoin (CRYPTO:DOGE) remain three of the most watched tokens for good reason. Unfortunately, observers mainly noticed a drop in prices over the weekend. Since the market closed on Friday, these three major digital assets have fallen 4.2%, 2.5%, and 11.2%, respectively, as of 12:45 p.m. ET on Monday.
An initial sharp decline was seen for all three tokens in early trading on Saturday, in line with the reported escalation of the ongoing conflict between Iran and Israel. While each of these three tokens offset some of this weekend’s initial losses, it’s clear that cryptocurrency is not immune to the geopolitical forces that move capital in and out of assets during periods of uncertainty.
These moves are also important because they come ahead of Bitcoin’s planned halving this week, during which block rewards for miners will be cut in half. Typically, previous halvings have led to a price surge, which has also spilled over to other crypto assets.
But given the anticipation of this rise, as well as capital inflows into spot Bitcoin ETFs, some investors appear to be betting that much of this rally may have already occurred, leading to caution in the future. approach to this key enabler.
Let’s look at other key factors to consider when it comes to these top three tokens and their price action today.
Why all this negativity in the large-cap crypto space?
Bitcoin’s move is perhaps the most important one to watch, as the world’s largest cryptocurrency heads toward its final halving, which is expected to take place around April 20. We will have to see how the network reacts and how investors like the network. its inflation rate is once again halved.
The fact that Bitcoin has not risen due to increased tensions between Iran and Israel suggests that investors continue to view it more as a risk asset and less as a hedge against uncertainty. We will have to see if this narrative changes, particularly if a response from Israel is seen in the coming days.
Ethereum’s move, while negative, was the strongest of the three over the weekend. This is likely due to the announcement that the Securities and Exchange Commission (SEC) approved applications from three Chinese companies to list Bitcoin and Ethereum spot ETFs in Hong Kong.
No official SEC report has been released, but this could indicate that a one-time approval of the Ethereum ETF in the United States is likely to be seen in the near future. For now, overall macroeconomic concerns appear to be distracting from this otherwise positive catalyst. I would expect Ethereum to continue to outperform its large-cap peers in the coming weeks as investors price in this catalyst.
The story continues
Dogecoin’s double-digit decline over the weekend once again illustrates the nature of this token as a high-risk, high-leverage bet on momentum within the crypto space. The Lack of Meaningful Rhetoric from Elon Musk (and the Rise of Negative Sentiment Around Him) You’re here and its recent layoffs and fully autonomous driving announcements) have investors apparently looking for other options in crypto right now.
Is there any potential upside on the horizon this week?
Certainly, there are a number of bullish catalysts that could push these three major coins higher this week. The Bitcoin halving and reported approvals of Ethereum spot ETFs should be generally bullish for the two top cryptos by market cap (and Dogecoin by default).
The fact is that uncertainty remains high at present and investors remain nervous as they wait to see if we are headed for another war. Sentiment in financial markets is currently gloomy, which means that these catalysts could be overshadowed by this general sentiment, at least in the short term.
It will be interesting to see how these major tokens perform next weekend, as additional news emerges regarding the two aforementioned key catalysts that all crypto investors are currently watching.
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Chris MacDonald has positions in Ethereum. The Motley Fool holds positions and recommends Bitcoin, Ethereum and Tesla. The Motley Fool has a disclosure policy.
Why Bitcoin, Ethereum and Dogecoin Slipped Over the Weekend was originally published by The Motley Fool