The cryptocurrency market has woken up as the price of Dogecoin (DOGE) has risen to $ 0.69 in the last two days, prompting many to question whether the recent performance of the world’s most popular meme token is now a leading indicator of its growth. of an alternative time of year.
Longtime cryptocurrency enthusiasts are celebrating May 4 as a special day for the bitcoin community as a whole, as it marks the birthday of Hal Finney, a well-known early supporter of the Bitcoin network, who would have turned 65 years old.
Data from Cointelegraph Markets and Tradingview show that while the world’s focus was on Dogecoin, Bitcoin (BTC) faced sales pressure that started the night before, and by noon on Tuesday, BTC’s price had fallen below the support level of $ 55,000.
4 hour chart BTC / USDT. Source: TradingView
With BTC continuing to trade between $ 50,000 and $ 60,000, or what some traders call a “twilight zone”, the ETH price rose again to a full-time high of $ 3,519, as institutional leaders now have the highest levels. $ 13.9 billion. The cost of the leading smart contract and the cryptocurrency platform.
Yellen’s comments on US central bank prices set the markets
Global financial markets faced headwinds on Tuesday along with most cryptocurrencies after US Treasury Secretary Janet Yellen’s comments suggested that the Fed may need to raise interest rates “to prevent overheating”.
According to Ben Lilly, analyst and co-founder of Jarvis Labs, “US Federal Reserve rates tend to be a barometer of global markets,” so BTC’s position as macroactive “was undoubtedly influenced by Yellen’s comments, although she is not. current Federal Reserve Chairman. ”
Looking more closely at recent activity on the Bitcoin network, Lilly noted that “transactions on the network have been weak since the main options expired last week,” which did not help protect against negative news such as Yellen’s comments.
“We would not be surprised by the huge decline before we sell the six-digit bitcoin.”
This sentiment was echoed by David Lifshitz, ExoAlfa’s chief investment officer, who pointed to a breach of Bitcoin’s previous bullish pattern as a sign that BTC would be difficult to break over $ 60,000 without a major catalyst.
However, in the case of Ethereum, Lifshitz stated that “ETH has been in a bullish world,” as evidenced by the creation of “new heights every day for the last eight days”.
Although it is difficult to determine the exact reason for the launch of ETH, a plausible explanation may be that “some investors have viewed ETH as a low-cost cryptocurrency on BTC since its recent launch and decided that ETH was a cheap alternative, “in Lifshitz. BTC. … ”
Other drivers identified by Liftcz include increased use of ETH in decentralized financing, as well as a scenario of buying rumors and potential sales news before the upcoming Ethereum EIP 1559 network update in July.
Lifshitz highlighted the tendency for cryptocurrencies to take bigger steps on the basis of the rally rather than on the basics, “because investors are looking for short-term results, regardless of the basics.”
“We could see some pure hunting with ETH. The price appearances can continue at pure speed longer than one would expect as long as it is a bigger idiot, but the downturn is usually sharp and fast when the game stops.”
Dogecoin steals the show
Dogecoin’s performance dominated discussions in the broader cryptocurrency community, which rose 54% overnight and reached full-time highs of around $ 0.68 on some exchanges.
Other notable achievements include a 30% increase in the price of iExec RLC (RLC) to a full-time high of $ 4.45 and a 50% increase in the price of Ethereum Classic (ETC) to $ 79.
The total market value of cryptocurrency is now $ 2.25 trillion, and Bitcoin’s dominance rate is 45.2%.