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Another 50% daily gain for Dogecoin confirms alt season as Bitcoin slumps


05 May 2021

#Dogecoin

Dogecoin rally sparks speculation about the arrival of alt season as Ether celebrates its eighth-straight day reaching a new high. The cryptocurrency market awoke to the sight of Dogecoin (DOGE) price surging to as high as $0.69 in the past two days, leading many to wonder if the recent performance of the world's most popular meme token is now the leading indicator for the arrival of alt season. 

Long-time crypto fans mark the fourth of May as a special day for the Bitcoin community as a whole for being the birthday of one of the earliest known supporters of the Bitcoin network Hal Finney, who would have celebrated turning 65.

Data from Cointelegraph Markets and Tradingview shows that while the world's attention was focused on Dogecoin, Bitcoin (BTC) faced selling pressures, which began the night before and dropped the price of BTC back below the $55,000 support level by mid-day on Tuesday. While BTC continues to trade in the $50,000 to $60,000, or what some traders see as the "twilight zone," the price of Ether (ETH) again climbed to a new all-time high at $3,519 as institutional managers now hold a record $13.9 billion worth of the top altcoin and smart contract platform.

Yellen’s comments about US Fed rates shake the markets

The global financial markets faced headwinds on Tuesday along with a majority of cryptocurrencies following remarks from U.S. Treasury Secretary Janet Yellen who indicated that the Federal Reserve may need to raise interest rates to “prevent overheating.”

According to Ben Lilly, analyst and cofounder of Jarvis Labs, “US Fed Rates tend to be a barometer for global markets,” so BTC’s status as a macro asset was “surely impacted by Yellen’s comments even though she is not the current Fed Chair.”

Looking deeper into the recent activity on the Bitcoin network, Lilly indicated that “on-chain transactions have been lackluster since the major options expiry last week” which hasn’t helped provide a buffer against negative news like the comments from Yellen.

Lilly said, “It wouldn’t surprise us to see a significant pull back before we realize six-figure bitcoin.”

These sentiments were echoed by David Lifchitz, chief investment officer at ExoAlpha, who pointed to a breakdown in Bitcoin’s previous pattern of higher highs as a sign that BTC will have a difficult time breaking out above $60,000 without a significant catalyst.

When it comes to Ethereum however, Lifchitz stated that “ETH has been in its own bull world” as evidenced by establishing “new highs every day over the past eight days.”

According to Lifchitz, while the exact cause of the ETH run is hard to determine, one plausible explanation could be that “some investors looked at ETH as an underpriced crypto compared to BTC since it's recent run and decided that ETH was a cheap alternative to BTC.”

Other catalysts identified by Lifchitz include the increased usage of ETH in decentralized finance as well as a possible “buy the rumor, sell the news” scenario developing ahead of the upcoming Ethereum Network upgrade EIP 1559 that will take place in July.

Lifchitz highlighted the tendency of cryptos to make bigger moves on momentum plays than they do on a fundamental basis, “essentially due to investors chasing short-term performance no matter what the fundamentals are.” Lifchitz said,

“We could see a bit of pure performance chasing on momentum with ETH. Price increases on pure momentum can go on for longer than one can expect, as long as there's a greater fool, but the fallback is usually pretty harsh and quick when the game stops.”

Dogecoin steals the show

Conversations in the wider cryptocurrency community were dominated by the performance of Dogecoin, which surged by 54% overnight to reach a new all-time high of around $0.68 on some exchanges. Other notable performances include a 30% increase in the price of iExec RLC (RLC) to a new all-time high at $4.45 and a 50% surge in the price of Ethereum Classic (ETC) to $79.

The overall cryptocurrency market cap now stands at $2.25 trillion and Bitcoin’s dominance rate is 45.2%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 95.6% 2 $27 039.83 2.05% 1.68% $527 252 460 832 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 89.2% 5 $1 673.68 2.76% 5.04% $201 236 607 315 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 94.8% 1 $0.999935 0.08% 0.01% $83 271 159 494 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 90.8% 2 $216.15 1.27% 2.52% $33 253 779 336 BNB 7 days price change
5 XRP (XRP) XRP XRP predictions 90% 9 $0.510677 1.70% 0.44% $27 225 409 135 XRP 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 93.6% 1 $1.000031 -0.01% 0.01% $25 532 133 625 USDC 7 days price change
7 Lido stETH (STETH) STETH Lido stETH predictions 92.8% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
8 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 86.8% 24 $0.088292 4.10% 5.99% $8 977 186 451 WTRX 7 days price change
9 Cardano (ADA) ADA Cardano predictions 91.6% 6 $0.251514 1.88% 2.61% $8 835 312 768 ADA 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 91.2% 4 $0.061731 1.06% 0.25% $8 716 622 382 DOGE 7 days price change
11 Solana (SOL) SOL Solana predictions 85.2% 20 $20.15 4.81% 2.65% $8 320 025 559 SOL 7 days price change
12 TRON (TRX) TRX TRON predictions 87.2% 22 $0.088863 4.54% 6.44% $7 915 896 490 TRX 7 days price change
13 Toncoin (TON) TON Toncoin predictions 58% 84 $2.23 1.65% -2.84% $7 660 748 928 TON 7 days price change
14 Dai (DAI) DAI Dai predictions 91.6% 1 $0.999533 -0.04% 0.01% $5 345 391 790 DAI 7 days price change
15 Polkadot (DOT) DOT Polkadot predictions 91.2% 7 $4.09 1.18% 1.62% $5 023 915 784 DOT 7 days price change

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