The crypto market is tanking, and Ethereum (ETH) and Dogecoin (DOGE) are getting hit the hardest among the big players. Bitcoin (BTC) is also struggling, officially entering bear market territory.
Ethereum and Dogecoin: Big Losses
Ethereum, the second biggest cryptocurrency, saw its market cap plummet about 7.8% in the last 24 hours. The price dropped to $1910. While trading volume actually increased by 80%, investors are pulling out, leading to more liquidations.
Dogecoin, the top meme coin, isn’t faring much better. Its market cap fell by 6.6%, despite a 30.5% jump in trading volume. The price is down to $0.16, a 16.8% drop in the last week and a whopping 37% decrease over the past month. This is a significant correction after its earlier surge. Both Ethereum and Dogecoin saw the biggest 24-hour losses among the top 10 cryptocurrencies.
Bitcoin and the Bear Market
Crypto analyst Tony Severino believes Bitcoin has entered a bear market. His analysis uses the Elliott Wave Theory, suggesting that the bear market for altcoins (like Ethereum and Dogecoin) actually started back in 2022, aligning with Bitcoin’s “Wave 5.”
This theory suggests that the fifth wave of a market cycle is usually weaker than the third, and this was the case with Bitcoin. The theory also points to the impact of rising interest rates and reduced liquidity by central banks (Quantitative Tightening or QT). Altcoins typically do better with lots of money flowing around, so this economic tightening has hurt them. Severino argues that the altcoin bear market hasn’t really ended because economic conditions haven’t improved since 2022.
