Bitcoin Price Hits Late-2020 Levels As Crypto Market Suffers Fresh Crash
The crypto market’s recent crash is resonating in Washington, where White House officials are working to coordinate their approach. Meanwhile, federal agencies are wrangling over how to regulate the new asset class. While the price of Bitcoin has slid, Ether has outperformed the market, gaining an extra 11% in the digital-asset markets.
Ether outpaced bitcoin since both cryptocurrencies hit a low in June
The two cryptocurrencies are now trading at similar levels after ETH’s market share has risen to more than 50% of the total trade volume. Ethereum’s network is transitioning to a proof-of-stake mining algorithm, which has given it the ability to outpace bitcoin on the price chart. This shift has seen Ethereum Classic (ETC) experience a bullish reversal on news of a $10 million investment.
The ratio between the two cryptocurrencies hit 0.08514 on Wednesday, the highest since the start of the year. Moreover, it’s the first time that ETH has surpassed bitcoin since both cryptocurrencies hit their lows in June. Considering the recent bullish sentiment, it’s possible that ETH will overtake bitcoin in the coming months.
Bitcoin and Ether are both experiencing volatility as the Federal Reserve’s decision to pull out of emergency support has spooked investors who piled into risky assets during the global financial crisis. Bitcoin and Ether are down over 15% since their peaks in November.
Ethereum has a long-standing dream of challenging bitcoin as the No.1 cryptocurrency. At the start of the year, ETH was worth less than 0.049 bitcoin, and only occupied a small portion of that market. At present, one ether is worth about 0.082 bitcoin, up sharply from the 0.049 bitcoin low in 2022. While it is unlikely to become the No. 1 cryptocurrency in a year, it’s clear that Ethereum is an asset people are increasingly considering as a safe haven.
With its recent breakout, Ether has become the second largest cryptocurrency by market capitalization. A series of recent developments have also made ETH an increasingly popular option. In the second quarter, Chicago-based exchange ErisX launched Ether futures contracts, which will be regulated by the Commodity Futures Trading Commission (CFTC). Likewise, Malta-based exchange OKEx has introduced Ether options, which have been gaining in popularity since their launch in June.
The latest development in ETH technology is expected to make the transaction network more energy efficient. Ethereum is currently upgrading to a new proof-of-stake protocol that should reduce energy usage and emissions. The upgrade is expected to be completed early next week. It’s expected to ship to users early next month.
The CEL token has outperformed bitcoin since both cryptocurrencies hit a low back in June. It is worth noting that CEL’s value remains below its all-time high of nearly eight dollars. It’s also worth noting that a VC firm is eyeing an investment in Lido.
After a week of volatile trading, Bitcoin and Ether are expected to remain range-bound. As long as the Fed is not raising rates and rolling down its balance sheet, the underlying sentiment for both cryptocurrencies is likely to remain weak. This will lead to a period of range-bound trading until the Fed releases a softer inflation print. In the meantime, investors should be wary of the risks associated with the rise of rates.
Bitcoin has risen to about $18,000 since its low in June. However, the trend is not clear-cut and investors should be wary of inflation and unexpected interest rates. A dip below $18,000 could lead to a test of the $14000 level. This could result in a huge decline in the value of bitcoin. However, this may be a good opportunity for Ether to rebound and reach its previous high.
The recent rise in bitcoin and Ether has occurred on the back of an influx of money into risk assets. As stocks remain under pressure, central banks are raising interest rates to counter the rising costs of inflation. While this hurts stocks, it also hurts crypto.
Dogecoin’s DOGE surged 11% in digital-asset markets
If Elon Musk’s appearance on Saturday Night Live is any indication, Dogecoin’s DOGE has skyrocketed in digital-asset markets. The billionaire investor has made a bet on the cryptocurrency, saying that it is more convenient as a form of payment. In the wake of that news, Dogecoin’s DOGE surge has been accompanied by gains across traditional asset classes. While gold futures have lost 6% so far this year, the Dow Jones Industrial Average is only down 0.64%. Meanwhile, the S&P 500 index is expected to grow by at least 10% by 2021 and the Nasdaq Composite Index has gained over 5%.
Dogecoin’s DOGE price rose by more than 300% in the first five months of 2018, as it gained traction from positive comments by Elon Musk and Snoop Dogg. Its price has increased more than six-hundred percent since its launch in 2013, and it has surpassed the $2 billion market cap for the first time. Despite this impressive performance, however, Dogecoin’s price is still relatively small compared to other top-tier cryptos.
Although Dogecoin’s DOGE has seen gains across digital-asset markets, the currency was not originally intended to be a serious investment. It was initially created as a fun joke by two software engineers, Jackson Palmer and Billy Markus. The idea was to make cryptocurrency fun and simple to play with – dogecoin coins were only worth a fraction of a cent. The concept gained traction after a viral internet meme and a growing online community.
Despite its volatile history, Dogecoin is now considered one of the most popular meme currencies in the crypto market. While most market analysts had predicted that Dogecoin’s DOGE would not achieve mass appeal, the currency’s popularity continues to grow. If the currency keeps up its current momentum, it could rise to $0.7300 by the end of 2023, or more than 500% by 2024.
The cryptocurrency is gaining popularity with high-profile celebrities and retail investors. Elon Musk regularly tweets about the coin and has been credited with boosting DOGE prices. The tech titan is also slated to host an episode of Saturday Night Live this weekend, so some people expect his presence to raise DOGE’s profile.
The decentralized finance dog token was the top-trending crypto in the digital-asset markets on Monday. After a lackluster first half of the year, the crypto showed signs of recovery in July. Its gains corresponded with the wider market’s gains over the past few weeks.
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If you’re interested in investing in Dogecoin, eToro is an excellent choice. This online broker has over 23 million registered users, and is regulated by top-tier entities. The platform also features a spread-based crypto trading model. Depending on which asset you want to invest in, eToro’s spread may be as low as 1%.
The Twitter acquisition deal was also a major catalyst for Dogecoin’s recent rally. Elon Musk’s regular tweets about DOGE sent the token’s price skyrocketing. However, the deal collapsed, and Twitter sued. A Delaware judge ruled in favor of the company, and the trial is set for October.
