Animal spirits are alive and well in the world of cryptocurrencies, with madness sending Dogecoin up 50% again and crashing Robinhood’s trading app.
The other so-called Altcoins also took off, with Dash jumping to 14% and Ethereum Classic jumps over 30 percent. In the DeFi world, tokens like Force DAO and Tierion rose more than 1,000 percent on Tuesday, according to CoinMarketCap.com. Meanwhile, Robin Hood said it had solved earlier problems with crypto trading on its platform.
“You have money to look for a home and this is one of those areas of the market where speculation is happening, there is a significant valuation that is happening in a short period of time,” said Chad Oviat, director of investment management at Huntington Private Bank. “You get that excitement there.”
The rallies opposed the easy explanation and continued a trend that saw the value of all digital tokens jump above $ 2.25 trillion (approximately Rs. Doge, created as a joke in 2013, was used in marketing gimmicks, the latest by the Oakland A baseball team to offer two places to play this week for 100 Dogecoin. The Gemini cryptocurrency exchange, backed by Tyler and Cameron Winklevoss, said it already supported Doge and would soon allow it to be traded.
Dogecoin’s red advance of about 0.002 cents a year ago – when it cost about $ 300 million (approximately 2,220 kroner) – attracted the interest of many on Wall Street. He even caught the attention of the Federal Reserve – the chairman of the central bank last week answered “some asset prices are high” when asked if things like GameStop’s and Dogecoin’s supercompressed rallies posed threats to financial stability.
As a sign of Dogecoin’s growing popularity, the Robinhood app is among Apple’s 10 biggest downloads App Store. Meanwhile, Coinbase Global, the largest cryptocurrency exchange in the United States, does not offer trading with Doge – its shares fell by more than 6% on Tuesday. The shares are about to reach their lowest closing since their debut on the market last month.
“It’s amazing that something that started as a joke has become so popular,” said Matt Maley, Miller Tabak +’s chief market strategist.
Although interest in digital assets has increased in recent months as more traditional companies, which have long been hesitant about cryptocurrencies, are warming to cryptocurrencies, alternative coins have attracted the most attention in recent days. Bitcoin there is took the back seat after record-breaking Ether and Doge records, wrote Edward Moya, a senior market analyst at Oanda.
“The Dodgecoin bubble should have popped up by now, but institutional interest is trying to take advantage of that momentum, and that could support another upswing,” he said in a note. “Dogecoin is on the rise because many cryptocurrency traders don’t want to miss any news coming from To Elon Musk hosting Saturday Night Live. “
Elsewhere, a new Ether ETF trade in Canada, called the CI Galaxy Ethereum ETF (ETHX), broke its record high on Tuesday, with more than $ 12 million (approximately RR. 160 crore) stocks changing hands at 12:30 p.m. New York. The fund raised about $ 162 million (approximately 1,200 kroner) since its debut in March.
Bitcoin fell 5.7 percent to $ 53,560 (approximately 39.5 lacquers), the third straight decline.
Meanwhile, many – including prominent crypto investor Mike Novogratz – have warned that rallies could be unsustainable. Novogratz, CEO of Galaxy Digital Holdings, said recently that he would be “very, very worried” if one of his friends invested in Doge.
“Investors seem to be moving from one hotspot to another, like a pinball game,” said Mike Bailey, director of research at FBB Capital Partners. “I guess this speculative wave will suffer the same fate as GME and Robinhood’s other flash-in-the-pan stocks.” Cryptocurrencies may have become a new class of assets, such as precious metals, but jumps like these seem unsustainable. “
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