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The cryptocurrency market is facing a seemingly never-ending decline, with Ethereum (ETH) and Dogecoin (DOGE) the losses among large-cap digital assets. This correction comes as the turns bearish and cautious while Bitcoin (BTC) experiences persistent volatility and moves into bear market territory.
Ethereum And Dogecoin Market Cap Takes A Hit
Ethereum, the second-largest cryptocurrency by market capitalization, has recorded a significant drop in its market cap in the last 24 hours. While the to $1,910, its market cap has also gone down approximately 7.8%.
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A combination of factors has contributed to this unfortunate drop in valuation, including investor caution ahead of key economic reports and . While Ethereum’s trading volume seems to be the only metric in the green, jumping by 80%, as traders exit their positions ahead of further losses.
On a similar note, Dogecoin, the number one meme coin, has experienced steep losses in both its value and market cap. Despite its 30.5% increase in trading volume, has fallen by 6.6%. This decline follows a recent earlier this year, which appears to be losing momentum.
As of writing, the Dogecoin price is trading at $0.16, reflecting a of 16.8% in the last seven days and a massive 37% crash over the past month.
Notably, the decline in Dogecoin and Ethereum’s market cap is the highest in the last 24 hours, with coins in the top 10 experiencing a less than 2% drop. This massive drop in both cryptocurrencies comes as analysts confirm that .
Bitcoin And Altcoins Enter Bear Market
According to crypto analyst Tony Severino, Bitcoin may have bear market territory as the pioneer cryptocurrency faces . Severino’s analysis applies the Elliott Wave Theory, which claims that the bear market for altcoins started in 2022, coinciding with Bitcoin’s Wave 5.
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During this period, the market saw a rise in interest rates and , where central banks reduced liquidity in financial markets. Since altcoins thrive when there is excess liquidity, economic tightening has led to weak performance for these digital currencies.
Severino argues that lacked the usual strength of a true bull market top. Based on the , the fifth wave has always been weaker than the third in terms of price speed, volume, and breadth.
The analyst also referenced a textbook that explains that Wave 5 tends to be sideways and weak, often preceding the bear market as it indicates waning momentum. The overall conclusion of Severino’s analysis is that the altcoin bear market, which began more than three years ago, has never really ended since economic conditions haven’t returned to what they were before 2022.
Featured image from Unsplash, chart from Tradingview.com