Bitcoin, Ether, Dogecoin and Co. are in the red. But why, in the end, the solid projects in particular should benefit. The market update.
Everything has an end – this also applies to crypto rallies. After the crypto market, above all the altcoin market for investor favorites such as Dogecoin (DOGE), Ether (ETH) and recently even SHIBA INU (SHIB), recently delivered fabulous returns, things are now on the decline. On the morning of May 11th, most crypto portfolios were likely to have been deep red.
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The fact that this is the old season is of course also evident from the amount of sales. While ETH “only” slipped 6.3 percent into the red, the bottom broke away for BTC once again: minus 7.22 percent within 24 hours were recorded by the crypto bell-jar. Bubble coins such as DOGE were even more affected: The meme coin with the Shiba Inu in the logo lost 10 percent of its value – but in a 7-day comparison it is still 8 percent in the green area.
Overall, the crypto market could now enter a phase of consolidation, which after all the hype about coins without use could be urgently needed.
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A look at Coinmarketcap also proves that the market is currently on the hunt for easy money. There you can see which coins are checked most frequently for their price performance. Arranged according to the most clicks – you can guess three times – a dog coin is in first place.
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Alone within the top 10 of the most popular coins are five cryptocurrencies with reference to four-legged friends (four dogs, one pig). Bitcoin, on the other hand, ranks eighth. Until the dust settles, solid projects like BTC and ETH should continue to bleed; At least that’s what analyst Ki Young Ju suspects. The CEO of the analysis service Cryptoquant writes on Twitter that the trading volume will soon flow back to the market leaders.
After all, markets cannot act irrationally forever. While short-term oriented traders chase after the quick money, Bitcoin is filling up with fuel to continue its journey to the moon. For example, if you take a look at the exchange reserves, a bullish picture emerges for BTC. The proportion of Bitcoin that is held on trading exchanges such as Binance and Coinbase is still falling sharply. At the time of going to press, there are only 1.16 million BTC on the exchanges. For comparison: A year ago it was 1.5 million.
The consequence of the withdrawal of Bitcoin assets to private wallets is a shortage of liquid supply on the market. In other words: There is less and less BTC available for trading, which has to have a positive effect on the price sooner or later. While some rely on the quick profit, Hodler von Welt prefer to rely on solid fundamentals from industry giants such as Bitcoin and Ether – and buy diligently. After all, the tide on the crypto market can quickly change again.