Ethereum
Why Ethereum, Dogecoin and Bitcoin Cash are crashing today
Many of the most watched large-cap companies cryptocurrencies We are seeing significant selling pressure in the market today. Ethereum (CRYPTO: ETH), Dogecoin (CRYPTO: DOGE) and Bitcoin Cash (CRYPTO:BCH) fell 4.5%, 5.8%, and 3.8%, respectively, over the past 24 hours as of 2:30 p.m. ET.
These moves come despite relatively strong price action in the stock market, with a number of more speculative meme stocks rising today. With cryptocurrencies closely associated with these assets (especially when we’re talking about meme tokens such as Dogecoin), the question has to be asked: what’s going on here?
It appears that some uncertainty around this week’s upcoming Federal Reserve Open Market Committee meeting is driving a decline in major tokens, leading to macroeconomic uncertainty in this space. But there are also key token-specific fundamental factors that appear to be in play as well. Let’s take a look at what’s causing the current turmoil among these top three tokens.
Macro/regulatory uncertainty remains
Ethereum’s status as the world’s second-largest cryptocurrency means it is a leading digital asset for many conventional investors looking to diversify into this space. This also means that regulators tend to pay more attention to this token, especially as an imminent decision on Ethereum spot ETFs approaches. Uncertainty around these ETF approvals in the United States remains high, although other jurisdictions are already approving exchange-traded products for Ethereum.
Additionally, a lawsuit filed against the SEC by Ethereum developer Consensys has received considerable attention in recent days. This lawsuit aims to prevent what the developer calls an “illegal seizure of authority,” a move applauded by many in the crypto community, ahead of key regulatory decisions in this area.
Other regulatory impact of various exchange movements such as Coinbase (NASDAQ:COIN) to list Dogecoin futures, among other products, remains to be seen. For now, these three tokens will likely face increased scrutiny on this front, with investors clearly taking a more cautious approach to these assets during today’s session.
This round of regulatory concerns may be complemented by the announcement of a recent payment update on claims related to Bitcoin Cash and other tokens for those affected by Mt. The Gox debacle from years ago was provided. This update indicates that a claims completion date has been brought forward, which will likely lead to selling pressure for Bitcoin Cash, at least in the short term.
The story continues
Will this downward dynamic continue?
For now, there are many regulatory hurdles that investors seem to be taking into the crypto sector. These three tokens present perhaps the most unique and visible headwinds, although it is also true that the Securities and Exchange Commission continues to push a hawkish narrative about the space. This could mean continued near-term uncertainty, which often leads to the type of volatility we see today.
It remains to be seen whether we will see an immediate rebound in this selling pressure. The crypto market continues to receive impressive attention, and while capital flows into digital assets appear to be slowing, these projects are worth considering. So, for now, I’ll keep these projects on my watchlist and provide updates as they come.
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Chris MacDonald has positions in Ethereum. The Motley Fool holds positions and recommends Bitcoin, Coinbase Global, and Ethereum. The Mad Motley has a disclosure policy.
Why Ethereum, Dogecoin and Bitcoin Cash are crashing today was originally published by The Motley Fool