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Fans raise Dogecoin to mark a auspicious day, even as other cryptocurrencies continue to struggle.
According to CoinGecko.com data at 11 a.m. in Hong Kong, the satirical Shiba Inu-themed figure rose 17% in the past 24 hours, while industry leaders extended losses. Bitcoin fell 3.4%, to about $ 54,287, for the fifth straight session of falls, and after the biggest intraday fall in nearly two months over the weekend. The second largest cryptocurrency, Ether, fell 5.1% to $ 2,097 on Tuesday.
“There is a tribe of investors, many of them Millennials, who see it as a cause, a movement,” said Antoni Trenchev, co-founder of cryptocurrency firm Nexo. “Dogecoin is symptomatic of the fact that the zeitgeist is passing before our eyes.”
The latest volatility fuels speak of a bubble in cryptographic assets and have affected its globality market capitalization. Still, the total remains close to the record $ 2 trillion threshold exceeded a fortnight ago. Crypto champions are part of an iconoclastic trend, including WallStreetBets retailers, that poses a challenge to investment rules. The Dogecoin sprint is driven by the hashtag #DogeDay that is trending on Twitter, with fans like the head of Tesla Inc.
The likes of Bitcoin and Ether are still up around 90% and 180%, respectively, this year as the crypto industry matures. Institutional investors such as Goldman Sachs Group Inc. and Bank of New York Mellon have entered the Nasdaq sector and listed on Coinbase Global Inc. last week it raised the profile of cryptography to major markets.
“Bitcoin is trying to stabilize after the weekend’s fall into bearish territory,” said Edward Moya, senior market analyst at Oanda Corp. “Institutional demand could find this massive sale as a buying opportunity. Bitcoin could continue to stabilize here, with a new trading range between $ 52,000 and $ 62,000 over the coming weeks.”
While Dogecoin fans continue to make waves, some crypto investors offered caution.
“It really has to be a season of high currencies,” said Justin Chuh, senior trader at regulated digital asset investment manager Wave Financial, which hopes most retail investors are better off buying and maintaining a Bitcoin-only portfolio. Ether and the Internet stack in the asset class only “adds to the heartbreaking volatility.”