Bitcoin
BTC$16 240.61

-1.80%

Ethereum
ETH$1 174.73

-3.19%

Tether
USDT$0.999656

0.01%

Binance Coin
BNB$296.09

-5.68%

USD Coin
USDC$1.000129

0%

Binance USD
BUSD$1.000369

0.01%

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.


Related

Crypto market stumbles, losing 5%
Crypto market stumbles, losing 5%
Dogecoin – a guide dog for the crypto?
Dogecoin – a guide dog for the crypto?
Dogecoin (DOGE), Elon Musk's favourite coin, has jumped 35% in the last three days
Dogecoin (DOGE), Elon Musk's favourite coin, has jumped 35% in the last three days
Dogecoin becomes second largest PoW cryptocurrency
Dogecoin becomes second largest PoW cryptocurrency
Bitcoin, Ethereum corridor and new dog race?
Bitcoin, Ethereum corridor and new dog race?
MultiBank io: Changing the Way People Think About Crypto
MultiBank io: Changing the Way People Think About Crypto
Doge gets more love on Twitter and Ethereum gets more hate
Doge gets more love on Twitter and Ethereum gets more hate
Dogecoin price risks 40% correction despite Elon Musk-Twitter euphoria
Dogecoin price risks 40% correction despite Elon Musk-Twitter euphoria
Tesla to accept DOGE payments at supercharging station in Santa Monica
Tesla to accept DOGE payments at supercharging station in Santa Monica

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 56.8% 88 $16 240.61 -1.80% 1.41% $312 124 680 527 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 61.6% 86 $1 174.73 -3.19% 4.91% $143 756 826 010 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 94.8% 1 $0.999656 0.01% 0.08% $65 340 189 558 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 66.4% 66 $296.09 -5.68% 15.44% $47 366 512 227 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 93.6% 1 $1.000129 0% -0.01% $44 316 728 602 USDC 7 days price change
6 Binance USD (BUSD) BUSD Binance USD predictions 91.2% 1 $1.000369 0.01% -0.06% $22 395 787 629 BUSD 7 days price change
7 XRP (XRP) XRP XRP predictions 61.2% 75 $0.383432 -3.99% 9.04% $19 286 169 244 XRP 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 59.2% 89 $0.096021 -0.86% 27.21% $12 739 192 925 DOGE 7 days price change
9 Cardano (ADA) ADA Cardano predictions 61.6% 81 $0.306128 -3.70% 0.94% $10 541 165 942 ADA 7 days price change
10 Lido stETH (STETH) STETH Lido stETH predictions 91.2% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
11 Polygon (MATIC) MATIC Polygon predictions 64% 68 $0.822534 -3.82% 3.23% $7 184 273 125 MATIC 7 days price change
12 Polkadot (DOT) DOT Polkadot predictions 66% 72 $5.18 -3.91% -0.19% $5 909 367 523 DOT 7 days price change
13 Dai (DAI) DAI Dai predictions 92.4% 1 $1.000041 -0.01% 0.02% $5 660 340 456 DAI 7 days price change
14 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 61.2% 79 $0.052693 -0.83% 5.23% $5 357 648 670 WTRX 7 days price change
15 Litecoin (LTC) LTC Litecoin predictions 65.2% 70 $72.15 -6.36% 19.41% $5 174 160 484 LTC 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.