Here's Where Bitcoin and Dogecoin Can Go From Here
Why Shares of Dogecoin, EOS, and Theta Are Rising Today
What happened
The crypto market stormed back this weekend, with the price of the world's largest cryptocurrency, Bitcoin, now topping $47,400. Most of the crypto market followed suit.
The price of Dogecoin ( DOGE 3.89% ) has risen nearly 7.5% over the last 24 hours as of noon today. The price of EOS ( EOS 3.01% ) has risen nearly 13%, while the price of Theta ( THETA ) is trading roughly 9% higher.
So what
In recent days, there have been a number of positive developments for the crypto market that could be driving the bullish sentiment.
Last week, the investment banking giant Goldman Sachs became the first bank to trade cryptocurrencies over the counter. Goldman traded a nondeliverable option with the crypto bank Galaxy Digital ( BRPHF 11.34% ). The move shows how cryptocurrencies are becoming more ingrained in the mainstream financial system every day. By trading over the counter, Goldman assumed more risk.
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In other news, U.S. lawmakers recently introduced a bill called the Electronic Currency and Secure Hardware Act, or the ECASH Act, that would task the U.S. Treasury Department with creating a token-based electronic dollar that people could store on their phones or on cards.
"We're proposing to have a genuine cash-like bearer instrument, a token-based system that doesn't have either a centralized ledger or distributed ledger because it had no ledger whatsoever. It uses secured hardware software and it's issued by the Treasury," Rohan Grey, a consultant on the bill, told CoinDesk.
Additionally, CNBC recently reported that British lawmakers are expected to announce crypto regulations over the next few weeks. While many were initially concerned about how regulations might affect the decentralized industry, regulation is now starting to be seen more favorably because it provides the industry with more clarity. More regulation also shows that the industry is becoming a more prominent part of everyday life. CNBC is reporting that the regulations are likely to be fairly reasonable and show openness toward the benefits that digital assets can bring to the table.
Meanwhile, analysts have noted that Dogecoin has broken some key technical trends in a way that could suggest a further breakout for the token. The number of long-term holders of Dogecoin has also been growing even though the coin hasn't performed well in a while. Investors that have maintained their investments in Dogecoin for a year or more is up by 17% since 2020, according to FXStreet.
Aside from the broader rally, EOS appears to be benefiting from renewed faith in the token from the crypto enthusiast and former actor Brock Pierce, who said on Twitter that he had just taken a large position in EOS.
Now what
Overall, all these developments on Wall Street and among lawmakers and regulators are good news for the crypto market, signaling further adoption. I think it's also good news to see the market being resilient amid a rising-rate environment, as cryptocurrencies seem to have traded a lot like tech stocks in recent months. But further rate hikes could still potentially put a dent in the crypto market, which is why it's still likely a good idea to focus on tokens that have real-world utility.
That's why I tend to prefer tokens like Theta, which is disrupting the video streaming space, and EOS, which has strong network fundamentals, over a meme-inspired cryptocurrency like Dogecoin. But Dogecoin has a much higher market cap than the other two and has managed to stay relevant through the turbulence in the market, so perhaps it is here to stay as well.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
Bitcoin above $47,000, ether, Shiba Inu surge; dogecoin plunges. Check cryptocurrency prices today
In cryptocurrencies, Bitcoin's rally continued as the digital token was trading at $47,550, up over a per cent. The world's largest and most popular cryptocurrency is up about 3% in 2022 (year-to-date or YTD) so far. It is about 30% far away from its record high of near $69,000 it had hit in November last year.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second-largest cryptocurrency in terms of market capitalization, also gained more than 2% to $3,388. However, dogecoin price slipped over 1% to $0.14 whereas Shiba Inu was trading over 5% higher at $0.000027.
The performance of other digital tokens also improved mixed as Polygon, Litecoin, Stellar, Terra, Solana, Cardano, Uniswap surged over the last 24 hours. Meanwhile, the global cryptocurrency market capitalisation was above the $2 trillion mark at $2.23 trillion, more than 2% change in the last 24 hours, as per CoinGecko.
Bitcoin and other cryptocurrencies had been, up until the last few weeks, mired in a similar downtrend like US stocks. But a weekend break above $45,000, helped garner momentum for a bigger breakout. The coin has added 17% over the past week.
“Bitcoin hitting its 3-month high, signals an expected and much awaited market recovery. With a number of countries indicating plans for positive regulation around crypto, investor sentiment seems to be surging, resulting in some of the highest 24 hour trading volumes we’ve seen in the last quarter. Many experts consider this to be the beginning of a strong bull market, however, time will tell to what extent they are right," said Raj Karkara, COO, ZebPay.
(With inputs from agencies)
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