In the world of virtual currency, Bitcoin (Cryptocurrency: BTC), Ethereum (Crypto: ETH) and dogecoin (Code:Doge) Three of the hottest tokens are for good reason. Unfortunately, onlookers see the price trend over the weekend as primarily downside. Since Friday's market close, these three top digital assets have fallen 4.2%, 2.5%, and 11.2%, respectively, as of 12:45 p.m. ET Monday.
Trading early Saturday saw the first sharp decline in all three tokens, coinciding with reports of an escalation in the ongoing conflict between Iran and Israel. While these three tokens each made up for some of their initial losses this weekend, it is clear that cryptocurrencies are not immune to geopolitical influences that drive capital into and out of assets in times of uncertainty. is.
These moves are also significant because they come ahead of Bitcoin's halving, expected this week, when block rewards to miners will be cut in half. Previous halvings typically resulted in price spikes, which spilled over into other crypto assets.
However, given the expectations for this rally and the inflows into Spot Bitcoin ETFs, some investors believe that much of this rally may have already happened and are on high alert heading into this important catalyst. They seem to be betting that they are connected.
Let's take a closer look at these three top tokens and other important factors to consider regarding their price movements today.
Why are there so many negative opinions in the large-cap cryptocurrency industry?
Bitcoin's move is perhaps the most notable as the world's largest cryptocurrency heads into its latest halving, which is expected to occur around April 20th. We'll have to wait and see how the network reacts and how investors value it. Inflation will be halved again.
The fact that Bitcoin did not rise as tensions between Iran and Israel increased suggests that investors continue to view Bitcoin as a risk asset rather than a hedge against uncertainty. We will have to see if this narrative changes, especially if we see any response from Israel in the coming days.
Ethereum's movement, although negative, was the strongest of the three over the weekend. This is likely due to the news that the Securities and Exchange Commission (SEC) has approved applications by three Chinese companies to list Bitcoin and Ethereum spot ETFs in Hong Kong.
Although no official report from the SEC has been released, this could indicate that we are likely to see approval of a Spot Ethereum ETF in the US soon. For now, overarching macro concerns appear to be stealing the spotlight from this positive catalyst. I expect Ethereum to continue outperforming other large tokens in the coming weeks as investors price in this catalyst.
Dogecoin's double-digit decline over the weekend once again exemplifies the token's nature as a high-risk, high-leverage bet on momentum within the cryptocurrency space. Lack of meaningful rhetoric from Elon Musk (and growing negativity around him) tesla (and the recent announcement of layoffs and full self-driving), it appears that investors are now looking for other options in the crypto space.
Are there any signs of improvement this week?
Certainly, there are a number of bullish catalysts that could push these top three tokens higher this week. Reports of Bitcoin halving and Spot Ethereum ETF approval should be a broadly bullish outlook for the top two cryptocurrencies by market cap (and Dogecoin by default).
The problem is that uncertainty remains high at this point, and investors are nervous about the possibility of another war. The current mood in financial markets is subdued, meaning that these drivers may be overshadowed by this overall sentiment, at least in the short term.
It will be interesting to see how these top tokens perform over the next weekend as additional news emerges regarding the aforementioned two major catalysts that all crypto investors are currently watching.
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Chris MacDonald has a position in Ethereum. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Tesla. The Motley Fool has a disclosure policy.
The original article “Why Bitcoin, Ethereum and Dogecoin slipped over the weekend” was published by The Motley Fool.
