The cryptocurrency market is currently facing a significant downturn, with Ethereum (ETH) and Dogecoin (DOGE) leading the losses among major digital assets. This decline comes as the overall market sentiment turns bearish and cautious, with Bitcoin (BTC) experiencing volatility and entering bear market territory.
Ethereum, the second-largest cryptocurrency by market capitalization, has seen a notable drop in its market cap over the last 24 hours. The price of Ethereum has fallen to $1,910, leading to a 7.8% decrease in its market cap. Several factors have contributed to this decline, including investor caution ahead of key economic reports and ongoing bearish sentiments. Despite an 80% increase in trading volume, liquidations persist as traders exit their positions in anticipation of further losses.
On the other hand, Dogecoin, the popular meme coin, has also experienced significant losses in both value and market cap. Despite a 30.5% surge in trading volume, Dogecoin’s market cap has dropped by 6.6%. This decline follows a previous surge in meme-based cryptocurrencies earlier this year, which seems to be losing momentum. Currently, Dogecoin is trading at $0.16, reflecting a 16.8% correction in the last seven days and a 37% crash over the past month.
The decline in the market cap of both Ethereum and Dogecoin is the highest among the top cryptocurrencies in the last 24 hours, with coins in the top 10 experiencing less than a 2% drop. This significant downturn comes as analysts confirm that Bitcoin has entered bear market territory.
According to crypto analyst Tony Severino, Bitcoin may have entered a bear market as it faces decreasing momentum. Severino’s analysis, based on the Elliott Wave Theory, suggests that the bear market for altcoins began in 2022, coinciding with Bitcoin’s Wave 5. Economic tightening and a rise in interest rates have impacted the performance of altcoins, which thrive on excess liquidity.
Severino points out that Bitcoin’s Wave 5 lacked the usual strength of a true bull market top, indicating waning momentum. The analyst concludes that the altcoin bear market, which started over three years ago, has not truly ended due to prevailing economic conditions.
In conclusion, the cryptocurrency market is currently experiencing a challenging period, with Ethereum, Dogecoin, and Bitcoin facing significant losses and market uncertainty. Investors and traders are advised to exercise caution and closely monitor market developments during this volatile period.