Image Source: Getty Images
This article was originally published on Fool.com. All figures are in US dollars unless otherwise stated.
what happened
Cryptocurrency market volatility continues to make headline news.However, today’s price behavior has turned broadly bullish this afternoon, with many top tokens moving from red to green in afternoon trading.
As of 2:45 pm (Eastern Time), Ethereum (Cryptography: ETH), Dogecoin (Cryptography: Doge)When sandbox (Cryptography: sand) Over the last 24 hours, they have surged 2.2%, 1.1% and 3.5%, respectively.
This rise seems to be the result of building positive sentiment about what could be a more constructive environment for cryptocurrencies. Each of these top tokens has its own catalyst that bulls rely on to make buying decisions, despite recent selling pressures.
In recent news that Ethereum and other top cryptocurrencies may be rated as commodities by the Commodity Futures Trading Commission, there are bullish investors in Ethereum compared to other tokens. This megacap token is much more stable than smaller tokens, primarily due to the view that Ethereum itself is an asset class.
Dogecoin has greatly benefited from the story of Elon Musk twitter Recent. Dogecoin investors are looking forward to the self-proclaimed “Dogefather” being set to take the lead (although he is currently fighting this acquisition). There remains uncertainty as to whether the deal will be completed, but more debate about Dogecoin is generally what the Bulls are looking forward to.
Sandbox has seen many prominent brands join its metaverse, and interest in this sector seems to be skyrocketing. If this bullish momentum in the Metaverse continues, there is reason for bulls to prefer how this token is placed.
So what
Generally speaking, a quick look at what the stock market is doing on a particular day is a pretty good prediction of where the crypto price is heading. This year, there has been a historically high correlation between cryptocurrencies and higher risk stocks such as tech stocks. However, the stock market instability and volatility seen in today’s crypto market is somewhat different.
Much of it seems to be due to the view that there is a fundamental reason to consider various top cryptocurrencies at these levels. Whether it’s Ethereum stability or the speculative benefits of Dogecoin and the sandbox, these low token prices can represent an attractive entry point for aggressive investors looking to add risk. There is sex.
So
The real question from here is how aggressive investors will be. The decision to add risk when there is little support for risk assets can be daunting. So perhaps this is another bear market bounce that is on a long-term downtrend.
Time will tell. Investor sentiment seems to be improving today. Tomorrow we’ll see how the market revalues this rally.
This article was originally published on Fool.com. All figures are in US dollars unless otherwise stated.
