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The cryptocurrency market is facing a seemingly never-ending decline, with Ethereum (ETH) and Dogecoin (DOGE) leadingthe losses among large-cap digital assets. This correction comes as the broader market sentimentturns 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 price of Ethereum has declinedto $1,910, its market cap has also gone down approximately 7.8%. Related Reading Ethereum, Dogecoin Lead Large Cap Losses As Bitcoin Moves Into Bear Market Territory 2 hours ago
A combination of factors has contributed to this unfortunate drop in valuation, including investor caution ahead of key economic reports and ongoing bearish sentiments. While Ethereum’s trading volume seems to be the only metric in the green, jumping by 80%, liquidations persistas 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, Dogecoin’s market caphas fallen by 6.6%. This decline follows a recent surge in meme-based cryptocurrenciesearlier this year, which appears to be losing momentum.
As of writing, the Dogecoin price is trading at $0.16, reflecting a deep correctionof 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 has entered bear market territory. Bitcoin And Altcoins Enter Bear Market
According to crypto analyst Tony Severino, Bitcoin may have enteredbear market territory as the pioneer cryptocurrency faces decreasing momentum. 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. Related Reading Bitcoin, Ethereum, And Solana: Real Vision’s Raoul Pal Calls The Greatest Macro Trade Of All Time 3 weeks ago
During this period, the market saw a rise in interest rates and Quantitative Tightening (QT), 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 Bitcoin’s Wave 5lacked the usual strength of a true bull market top. Based on the Elliott Wave Theory, 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. ETH trading at $1,912 on the 1D chart | Source: ETHUSDT on Tradingview.com Featured image from Unsplash, chart from Tradingview.com