Ethereum (ETH) and Dogecoin (DOGE) Market Cap Takes A Hit as Bitcoin Enters Bear Market

Ethereum, the second-largest cryptocurrency by market capitalization, has recorded a significant drop in its market cap in the last 24 hours.

Cryptocurrency prices have continued to decline, with Ethereum (ETH) and Dogecoin (DOGE) leading the losses among large-cap digital assets. This correction comes as the broader market sentiment turns bearish and cautious.

Ethereum And Dogecoin Market Cap Takes A Hit

In the last 24 hours, Ethereum has seen the biggest decrease in market cap among the top 10 cryptocurrencies. While the price of ETH fell to $1,910 and its market cap went down by 7.8%, the trading volume of the second-largest cryptocurrency has seen a 80% increase.

This unfortunate drop in valuation for Ethereum can be attributed to a combination of factors. Investor caution ahead of key economic reports and ongoing bearish sentiments have contributed to the decline in both Bitcoin and altcoins.

Similarly, Dogecoin (DOGE), the number one meme coin, has also experienced steep losses in both its value and market cap. Despite a 30.5% increase in trading volume for Dogecoin, its market cap has fallen by 6.6%.

This decline follows the recent surge in meme-based cryptocurrencies earlier this year, which seems to be losing momentum. As of writing, the Dogecoin price is trading at $0.16, reflecting a deep correction of 16.8% in the last seven days and a massive 37% crash over the past month.

It is worth noting that the decline in both Dogecoin and Ethereum’s market cap is the highest in the last 24 hours, with coins in the top 10 experiencing a less than 2% drop.

This massive drop in both cryptocurrencies comes as analysts confirm that Bitcoin has entered bear market territory.

Bitcoin And Altcoins Enter Bear Market

According to crypto analyst Tony Severino, Bitcoin (BTC) may have entered bear market territory as the pioneer cryptocurrency faces decreasing momentum.

Severino’s analysis applies the Elliott Wave Theory, which claims that the bear market for altcoins started in 2022, coinciding with Bitcoin’s Wave 5.

During this period, the market saw a rise in interest rates and Quantitative Tightening (QT), where central banks reduced liquidity in financial markets. Since altcoins thrive when there is excess liquidity, economic tightening has led to weak performance for these digital currencies.

Severino argues that Bitcoin’s Wave 5 lacked the usual strength of a true bull market top. Based on the Elliott Wave Theory, the fifth wave has always been weaker than the third in terms of price speed, volume, and breadth.

The analyst also referenced a textbook that explains that Wave 5 tends to be sideways and weak, often preceding the bear market as it indicates waning momentum.

The overall conclusion of Severino’s analysis is that the altcoin bear market, which began more than three years ago, has never really ended since economic conditions haven’t returned to what they were before 2022. As a result, the bear market for altcoins continues, while Bitcoin has entered bear market territory.