Why Ethereum, Dogecoin, and Bitcoin Cash Are Slumping Today

These three large tokens are currently experiencing various regulatory pressures affecting their valuations.

Many of the hottest large-cap cryptocurrencies are under significant selling pressure in today’s market. Ethereum (Ethereum -4.08%), dogecoin (Doge -6.30%) and bitcoin cash (BCH -4.24%) As of 2:30 p.m. ET, they had fallen 4.5%, 5.8%, and 3.8%, respectively, over the past 24 hours.

These moves come despite relatively strong price action in the stock market, with a number of more speculative meme stocks surging today. When cryptocurrencies are closely related to these assets (especially if we’re talking about meme tokens like Dogecoin), you have to ask the question, “What’s going on here?”

Uncertainty surrounding the upcoming Federal Reserve Open Market Committee meeting this week has led to declines in major tokens, adding to the macro uncertainty in the sector. However, some important token-specific fundamental factors also appear to be at play. Let’s take a closer look at what’s causing today’s confusion among these three top tokens.

Macro/regulatory uncertainties remain

Ethereum’s status as the second largest cryptocurrency in the world means that it is the hottest digital asset for many traditional investors looking to diversify into this space. What this means is that regulators are likely to pay significant attention to this token, especially with upcoming decisions regarding the Spot Ethereum ETF looming. Although other jurisdictions have already approved exchange-traded products targeting Ethereum, uncertainty remains high over the approval of these ETFs in the United States.

Additionally, a lawsuit filed by Ethereum developer ConsenSys against the SEC has received significant attention in recent days. The lawsuit aims to stop what developers call an “unlawful power grab” and comes ahead of important regulatory decisions in the area, a move that many in the crypto community praised. ing.

Other regulatory implications of various exchange moves coinbase (coin -7.68%) It is not yet clear whether products such as Dogecoin futures will be listed. For now, these three tokens are likely to come under very close scrutiny on this front, and it is clear that investors will take a more cautious approach to these assets in today’s session.

This series of regulatory concerns comes as news has been provided regarding recent payments of claims related to Bitcoin Cash and other tokens to those affected by the Mt Gox debacle several years ago. It may be concluded by This update indicates that the invoice completion date has been brought forward, which could lead to selling pressure on Bitcoin Cash, at least in the short term.

Will this bearish momentum continue?

There are a number of regulatory headwinds that investors seem to be pricing into the crypto sector at the moment. These three tokens probably have the most unique and notable headwinds, but it’s also true that the Securities and Exchange Commission continues to have a hawkish tone in this area. That could mean continued uncertainty in the short term, which often causes the volatility we’re seeing today.

It remains to be seen whether we will see an immediate rebound from this selling pressure. The crypto market continues to attract a lot of attention, and although the flow of capital into digital assets appears 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.

Chris MacDonald has a position in Ethereum. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, and Ethereum. The Motley Fool has a disclosure policy.

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