💥💥💥 Why #bitcoin , #Ethereum , and #Dogecoin Surged Today
The #cryptocurrency market surged after Federal Reserve Chairman Jerome Powell hinted at a potential rate cut, catching many investors off guard, as they had anticipated a hike.
With a more accommodative monetary policy on the horizon, risk assets like Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) all saw gains of 3.8%, 2.2%, and 4% respectively, by 4 p.m. ET Thursday.
Besides Powell's comments, specific factors are influencing these digital assets:
- Bitcoin's Outlook: Despite concerns about momentum loss, Bitcoin's near and medium-term outlook is bullish. Lower interest rates are expected to weaken the U.S. dollar, benefiting commodities and store-of-value assets like Bitcoin.
- Ethereum's Prospects: Ethereum stands to gain from capital inflows into cryptocurrencies. Expectations for SEC approval of spot Ethereum ETFs and its transition to a proof-of-stake protocol enhance bullish sentiment.
- Dogecoin's Appeal: Dogecoin remains a speculative asset favored by traders seeking short-term gains. Recent liquidation data may have contributed to its pronounced move during the rally.
- Sustainability of the Rally: While the surge is significant, broader context is crucial. Bitcoin remains below its all-time high, and the rally's sustainability depends on factors like additional catalysts and market sentiment. Monitoring Bitcoin is key, as it often dictates the direction of the overall cryptocurrency market.
Source - finance.yahoo.com
