This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Bitcoin (CRYPTO: BTC) has made another notable 24-hour move today, increasing 2.6% since 4 p.m. ET yesterday (as of 1:30 p.m. ET), with Ethereum (CRYPTO: ETH) and Dogecoin (CRYPTO: DOGE) also catching a bid, surging 3.8% and 4.4, respectively, over the same time frame.

These moves have taken Bitcoin back toward the pivotal $100,000 mark, with the world's largest digital asset continuing to hover around this critical level. Ethereum's and Dogecoin's outsize moves make sense in the context of the larger dynamics that are typically at play with respect to these three megacap projects, but let's dive into what's happening beneath the surface and driving such broad momentum in the crypto market as a whole and for these three projects in particular.

It's a macro day, baby

Most of the discussion on traditional media (and social media platforms as well) this morning revolves around today's Consumer Price Index (CPI) report, which came in lower than expected. Core CPI unexpectedly declined one-tenth of 1%, leading to a surge in interest among investors for higher-growth and more speculative asset classes.

Of course, the fact is that overall inflation at 2.9% is still meaningfully higher than the Federal Reserve's target, and there are concerns around Trump's potential tariff plans and how the bond market will continue to react to potentially higher deficits and growth over the next four years.

But with this lower-than-expected core reading, the market now has priced in a greater likelihood of continued interest rate cuts. These implied cuts have put pressure on the U.S. dollar and improved the risk-reward outlook for risk assets, all factors that should benefit megacap cryptocurrencies such as Bitcoin (which is more tethered to currency movements than the other two), Ethereum, and Dogecoin.

Are animal spirits ahead?

On a day when there's relatively little in the way of token-specific catalysts, sometimes market sentiment tied to macro conditions easing is enough to provide a rising tide that lifts all boats. And given that crypto as an asset class is about as far out on the risk spectrum as most traditional investors are willing to go, today's outsize moves (which are greater than the moves seen in most indexes today) reflect this reality.

Aside from the impact on the U.S. dollar this CPI report is likely to have (which will benefit Bitcoin), all risk assets should benefit from longer-term yields heading lower. That's because the 10-year U.S. Treasury yield is most often viewed as the appropriate discount rate for equities and other risk assets. For crypto investors with a long-term investing time horizon, discounting future growth to the present requires some sort of interest rate, and this is the particular figure most investors are paying close attention to right now.

I think if macro conditions continue to soften, and investors believe that more accommodative monetary policy is on the horizon, it's possible animal spirits could roar back once again. Bitcoin, Ethereum, and Dogecoin are each widely considered to be quality digital assets by their associated communities. Perhaps today's CPI report is what they needed to hit the bid once again.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Bitcoin, Ethereum, and Dogecoin just surged appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Why is the Bitcoin price down while shares hit highs?
• Why did the Bitcoin price just plunge more than 7%?

Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

As far as large-cap cryptocurrencies are concerned, Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE) continue to be three of the most closely watched digital assets investors are tracking, especially following the post-election rally these particular tokens have seen.

Each of these three major crypto projects has seen significant gains over the past three weeks, though some selling pressure has begun to build for these top-10 projects today. As of 3 p.m. ET, Bitcoin, Ethereum, and Dogecoin have declined 3.1%, 5.1%, and 5.6%, respectively, over the past 24 hours.

Now, it's worth keeping in context Bitcoin's outperformance relative to Ethereum and Dogecoin. This recent surge for Bitcoin has led the world's largest cryptocurrency to fresh all-time highs this past week (nearly breaking through the key $100,000 per token price level, before giving up some of these gains in recent days).

Today's decline has the top dog in the crypto world hovering around $93,000 per token at the time of writing, with Ethereum and Dogecoin still 32% and 48% off their all-time highs, respectively.

Let's dive into what's leading to today's selling pressure for these important crypto bellwethers today.

Selling pressure coming from all sides

Bitcoin's decline today appears to have sparked a larger sell-off in many digital assets. Indeed, whichever direction Bitcoin tends to head over the short term, it's usually the case that most other speculative assets in this space tend to follow, and today is no different.

Recent reports that spot Bitcoin ETFs saw their third-largest single-day outflow yesterday suggest that institutional money that may have flowed into this asset earlier this year is looking to take some profit off the table. Retail investors also appear to be following suit, with a number of prominent crypto experts pointing to profit-taking-like selling activity being noticeable on a number of top exchanges.

Interestingly, Ethereum has seen net outflows over the past week as well (according to data from CoinGlass), suggesting that a range of investors may be reconsidering position sizing and risk management after what's been an incredible rally in these two top tokens.

Additionally, with liquidations data being relatively balanced for Bitcoin but skewed toward leveraged short bets on Ethereum and Dogecoin, there may be some indication that near-term selling pressures could be abating as these positions unwind.

Today's price action for Dogecoin shouldn't be surprising, given the high level of correlation that's typically seen between this speculative meme token and both Bitcoin and Ethereum. While various political catalysts have supported Dogecoin's recent rally (Trump's victory, and by extension the proliferation of Elon Musk within the political sphere, has propelled Dogecoin higher following the election), it's also true that Dogecoin typically trades with much greater volatility than Bitcoin and Ethereum. What that means is that on days like today, investors ought to be prepared for outsized moves to the downside, which is what we're seeing once again.

What to make of today's decline

As mentioned, there are some interesting liquidations data that suggest (at least for Ethereum and Dogecoin) perhaps today's selling pressure may be coming to an end. As leveraged short bets are increasingly closed out, fresh capital looking to place wagers on the directional moves of these volatile assets can reset, meaning the ultimate direction each of these three tokens is headed in is uncertain right now.

We'll have to see how net inflows/outflows data come in for spot ETFs in the coming days, and I'll be paying close attention to liquidations activity as well as various utilisation metrics for these three networks over time.

For now, it does appear that the speculative frenzy in crypto assets is fizzling, at least over the short term. But with the strong election-related tailwinds still behind this sector, investors who may be looking for entry points may consider this more recent dip as a buying opportunity, so I wouldn't be surprised to see another rally take place coming out of this consolidation phase.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Bitcoin, Ethereum, and Dogecoin are giving up some gains. Here's what to know appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Why is the Bitcoin price down while shares hit highs?
• Why did the Bitcoin price just plunge more than 7%?

Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

As the cryptocurrency market settles down from yesterday's rally, most investors are seeing relatively flat, or slightly negative, performance in their portfolios today. That said, one standout token continues to break out: Dogecoin (CRYPTO: DOGE) has surged 14.1% over the past 24 hours, as of noon ET. 

This impressive move follows Elon Musk's surprise arrival at Twitter (NYSE: TWTR) headquarters yesterday. Carrying a kitchen sink and subsequently prompting employees and investors to "let that sink in," Musk appears to be taking a lighthearted approach to finalizing his deal to buy Twitter at $54.20 a share. Shares of TWTR stock are currently trading just shy of $54 per share, signaling this deal has a high likelihood of completing by Friday's deadline.

For Dogecoin investors, questions of whether Musk would ultimately follow through on his pledge to buy Twitter at the aforementioned price of $54.20 provided a great deal of volatility to both Twitter and Dogecoin, with the latter being viewed as a beneficiary of Musk controlling Twitter.

So what

Musk's deal to buy Twitter has been in doubt in recent months, with Musk backing down months after proposing an offer to Twitter's board that was too good to refuse. Noting concerns around bots, spam, and fake accounts, Musk canceled his deal on July 8. This sent shares of Twitter plunging, and Dogecoin followed.

However, following some impressive legal pushback from Twitter, Musk ultimately capitulated. His reason for the acquisition, as stated in a Twitter note to advertisers, has always been to create "a common digital town square, where a wide range of beliefs can be debated in a healthy manner, without resorting to violence." These goals were "important to the future of civilization," meaning that his overpaying for Twitter may be a small price to pay to further what he believes are altruistic goals.

The exact reason why Dogecoin is rocketing higher in the fashion it is remains unclear. Yes, Elon Musk has provided Dogecoin with plenty of supportive tweets in the past. However, his explicit references to Dogecoin have died down quite a bit of late.

Now what

Perhaps holding the reins to this multibillion-dollar social media platform will allow Elon Musk to comment on his favorite subject matters in a more uninhibited fashion (as if that was a problem to begin with). For Dogecoin holders, any sort of reference or mention from Elon Musk has proven to be a catalyst that can take this token higher. Accordingly, given the speculative nature of Dogecoin, it's clear that traders are looking to capitalize on the reality that this deal is likely to go through.

That said, we're talking about Elon Musk here. The deal isn't done until all the papers are signed and approval is granted. Thus, the story isn't over yet. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 'Let that sink in' — Dogecoin soars as Twitter deal seemingly set to close appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Here are the top 10 ASX 200 shares today
• 3 amazing tech ETFs to buy and hold forever
• ASX 200 stuck in the red as investors wait for US lead
• PLS shares drop 5%: What's driving the move?
• With the gold price up on Monday, are Northern Star shares a good buy now?

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Twitter. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.    

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

As the world's second-largest cryptocurrency, Ethereum (CRYPTO: ETH) generally dictates the way that many Ethereum-related tokens perform on any given day. Such is the case today, with Ethereum, Ethereum Classic (CRYPTO: ETC), and Lido Staked Ether (CRYPTO: STETH) all surging within a relatively tight band. As of 11:45 a.m. ET on Wednesday, these three tokens had risen 13.3%, 10.3%, and 13.2%, respectively, over the past 24 hours.  

These moves come on the heels of some rather impressive liquidation data for Ethereum. Over the past 24 hours, according to the website Coinglass, Ethereum liquidations surged to more than $575 million. These liquidations were skewed by more than 5 to 1 toward short trades, suggesting leveraged short-sellers are getting hit at a staggering pace. In fact, this pace of short liquidations is the fastest since July of 2021, providing retail investors with a potential short squeeze to jump on today.  

As more bullish sentiment builds in the market around Ethereum and other megacap tokens, staking interest on the Ethereum network could surge. For Lido Staked Ether, this is an obvious catalyst. That's because it's the token that represents the equivalent of a receipt for holders of ETH tokens staked on Lido's liquid staking platform.   

For Ethereum Classic, this network, which is actually a fork of the original Ethereum blockchain, has seen a surge in interest from crypto miners who have switched over to mining ETC to make up for lost revenue previously mining Ether. Accordingly, this blockchain is distinct from Ethereum itself, but appears to be rallying based more on broadly bullish macro conditions today.

So what

The moves Ethereum Classic and Lido Staked Ether have made today generally follow the high correlation of these tokens to Ethereum. As tokens that are generally viewed as proxies on Ethereum itself, Ethereum Classic and Lido Staked Ether have both seen a surge in interest as short positions are replaced by more risk-on trades in today's market.

However, it's important to consider the catalysts that drove this short-liquidation surge in Ethereum today. It appears that expectations that central banks could slow interest-rate hikes have driven most of today's bullish shift. The Bank of Canada announced a slower-than-expected rate hike of 50 basis points (0.5%) today, which hinted at the potential of an eventual central bank pivot. That's an obvious bullish catalyst for crypto investors, who have seen leverage come under pressure as rates rise and capital seeks a safe haven in fixed-income assets.

Now what

The crypto market's surge today, led by Ethereum, Ethereum Classic, and Lido Staked Ether, is one that many crypto investors have been longing for. It's been a tough year, to say the least, for most crypto investors, with the overall market still down roughly two-thirds from its peak in late-2021. 

Accordingly, whether the rally we've seen over the past few days can be sustained is the real question. For now, there's a lot to like about the momentum we're seeing with the upside among these three tokens.

But we've also seen downside volatility overwhelm bulls this year more often than not. Accordingly, investors looking to time the bottom might want to wait for more-conclusive data before jumping in with two feet.      

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why is Ethereum Classic surging today? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Here are the top 10 ASX 200 shares today
• 3 amazing tech ETFs to buy and hold forever
• ASX 200 stuck in the red as investors wait for US lead
• PLS shares drop 5%: What's driving the move?
• With the gold price up on Monday, are Northern Star shares a good buy now?

Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ethereum. The Motley Fool Australia owns and has recommended Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.            

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Today's moves in equity and cryptocurrency markets are providing a nice bout of bullish sentiment for investors who have been beaten down for most of 2022. As of 3 p.m. ET on Tuesday, Ethereum (CRYPTO: ETH), Bitcoin (CRYPTO: BTC), and Cardano (CRYPTO: ADA) had surged 11.7%, 4.9%, and 13.3%, respectively, over the past 24 hours. These moves come amid expectations that the Federal Reserve could tone down its pace of interest rate hikes sooner than expected, as well as some stronger-than-expected earnings reports from large-cap companies this week.   

One of the key drivers of expectations that the Fed could slow down its rate increases came out of new data released today with updated August numbers in the S&P CoreLogic Case-Shiller Home Price Index. While home prices accelerated 13% in August year over year, this increase was down considerably from the 15.6% rate seen in July. Accordingly, this was the steepest deceleration we've seen in the Case-Shiller index since its inception.

And data from the Case-Shiller 20-City index provided an even clearer picture of where prices are headed in major metropolitan areas. This metric showed a 1.6% decline in the top 20 major U.S. markets on a month-over-month basis.

Other positive earnings data from global companies such as Coca-Cola and GM this week stoked hopes that the economy could achieve a potential soft landing, allowing for lower interest rates in the intermediate term.

So what

Today's incredible moves higher in major cryptocurrencies signal the kind of high-correlation, higher-beta moves the crypto sector has been making this year. In general, most of the same macro factors driving stocks mostly lower this year have had a similar outsize effect on digital assets. Accordingly, as a higher-risk proxy for stocks, digital currencies often see larger gains during up days in the stock market.

Should interest rates begin to decline later this year, some analysts believe that we could see an accelerated rally into 2023. That said, it remains unclear if the Cosumer Price Index and Producer Price Index will corroborate with the lagging data we're seeing out of the housing market. 

Now what

Long-term investors looking to call a bottom have been unsuccessful in doing so thus far this year. Most bounces have been met with lower lows, suggesting true capitulation in high-risk assets has not been seen today. In some respects, today's surge in major cryptos could be a signal that speculative capital hasn't been fully washed out yet. Thus, perhaps today's rally is a bearish near-term signal for the market.

But it's entirely possible the market is right in its assessment that rates can't rise much further. The economy has undoubtedly slowed in certain core areas, such as housing. And given the lag in data that's been problematic in leading the Fed to be late to react to the initial surge in inflation, it's possible prices have come down more than the data suggest.

My take is that it's probably too early to say the selling pressure is over for crypto in general. However, these three high-quality tokens could be among the best performers when the market does turn bullish once again. Thus, now could be an interesting time to consider easing into positions as the market searches for a bottom. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Ethereum, Bitcoin, and Cardano are rocketing higher today appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Why is the Bitcoin price down while shares hit highs?
• Why did the Bitcoin price just plunge more than 7%?

Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Cardano, and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

The incredibly unpredictable price action seen in the cryptocurrency sector is once again in full focus today. In aggregate, the crypto market has moved meaningfully in tandem today, with the overall market rising a little more than 1.5% over the past 24 hours, as of 1:45 p.m. ET. 

That said, megacap tokens Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Cronos (CRYPTO: CRO) remain in focus for most investors, given the size and importance of these key blockchain projects. As of 1:45 p.m. ET, these three tokens surged 1.8%, 2.8%, and 4.4%, respectively, over the past 24 hours.

Interestingly, Bitcoin's move (which was the smallest of the three) follows an 85-minute window on Monday in which no blocks were produced. A difficulty adjustment appears to be tied to this issue, which raised eyebrows in the crypto world.

Other top tokens like Ethereum and Cronos have their own individual catalysts and headwinds. This week, it was announced that XRP is beginning to test a side chain compatible with Ethereum smart contracts. And Cronos has been benefiting from recent gaming-related updates, which have investors intrigued in this blockchain project's growth potential.

That said, the potential for further interest rate hikes by the Federal Reserve continue to provide headwinds for all risk assets. This makes the price action in these top tokens even more difficult to understand. 

So what

There's some very wonky thinking that appears to be taking hold in the markets right now. Given last week's hotter-than-expected CPI and PPI prints, most investors initially took the view that this would lead to more rate hikes, which are bad for risk assets. Cryptos, equities, and bonds sold off immediately on the news.

However, the past few days have seen some bullish momentum return, as some appear to be taking the view that more rate hikes in the near term could lead to a recession in the medium term. Such a recession could result in lower interest rates sooner than expected.

This second-derivative sentiment appears to be at play once again today, with the majority of near-term catalysts appearing to represent net negatives for cryptos still.

Now what

The difficulty of forecasting monetary policy decisions remains extremely high, and with most experts failing to see the inflation we're now battling, one could argue that any sort of forward-looking forecast is likely to be incorrect. Such is the nature of forecasts.      

That said, the idea that we could be due for lower interest rates in the medium term, as the Federal Reserve breaks something, is one that's starting to gather steam. For risk assets such as cryptos, a return of cheap(er) capital to the system could be the catalyst to drive valuations another leg higher. We'll have to see what happens in the months and quarters to come, but suffice it to say, there's plenty for investors to digest right now.  

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Crypto surges: Is now the time to buy Bitcoin and Ethereum? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Why is the Bitcoin price down while shares hit highs?
• Why did the Bitcoin price just plunge more than 7%?

Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Yet another massive hack in the world of cryptocurrency could be considered par for the course. This year, more than $2 billion has been exploited from various crypto projects, with Tuesday's hack of Solana-based decentralized lending platform Mango Markets creating a tremendous amount of concern among investors. 

As of 2 p.m ET on Thursday, Solana (CRYPTO: SOL), XRP (CRYPTO: XRP), and Cardano (CRYPTO: ADA) were down 2.6%, 1.4% and 2.9%, respectively, over the past 24 hours. That said, it should be noted that these cryptocurrencies have regained much of their losses throughout the trading day. Earlier this morning, these 24-hour declines had been as much as 9%, 8.7%, and 10.4%, respectively.

This hack has resulted in Solana losing approximately one-quarter of its total value locked (TVL) on its protocol. Total value locked is a key metric used to determine aggregate use of a network, with declines suggesting investors are pulling their capital out of a given ecosystem.

This recent hack appears to be the result of a sophisticated investor taking out large positions in leveraged perpetual contracts on the Mango Markets platform. This allowed for a mark-to-market surge in the perpetual contracts held by the trader, boosting the value and allowing the hacker to then essentially withdraw all of the liquidity on the protocol. 

So what

This sort of attack on a given project's collateral is one that clearly took a tremendous amount of time and effort. Now, the hacker in question is reportedly open to returning the exploited funds back to the protocol, so long as "bad debt," which arose from a bailout paid to a highly leveraged whale, is repaid. In any case, the ability of one individual to effectively shut down a large and important decentralized lending protocol is big news.

For Solana specifically, this is the latest in a string of security-related issues that have concerned investors. For investors in other projects such as XRP and Cardano, exploits of top-10 projects have clearly provided concern. XRP is battling its own project-specific headwinds tied to an ongoing battle with the Securities and Exchange Commission over whether its token constitutes a security, and Cardano's ecosystem has lost some of its luster following its highly anticipated Vasil Hard Fork upgrade.

Now what

Exploits (or hacks) will remain a key focal point for investors, particularly those who might be skeptical about the underlying technology to begin with. It's still early innings for the nascent crypto sector, and mistakes are going to be made. That said, until the kinks are worked out, many institutional investors might choose to stay on the sidelines. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post A $100 million hack hit Solana, XRP, and Cardano hard today appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Here are the top 10 ASX 200 shares today
• 3 amazing tech ETFs to buy and hold forever
• ASX 200 stuck in the red as investors wait for US lead
• PLS shares drop 5%: What's driving the move?
• With the gold price up on Monday, are Northern Star shares a good buy now?

Chris MacDonald has positions in Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Solana. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

The broader cryptocurrency market has been seeing rather low levels of volatility of late. Whether that's investors believing that much of the macro news that's already impacted markets has been priced in or not remains to be seen. However, with most tokens hovering around flat today, and the overall market down only 0.3% at the time of writing, many are focusing on tokens that are making unusual moves.

One such token that fits this criteria today is Hedera Hashgraph (CRYPTO: HBAR). The world's 36th-largest token by market capitalization, Hedera has surged 6.2% higher over the last 24 hours as of 1:30 p.m. ET. This is the largest upside move of any token today.

Recent reports that Hedera has seen developer interest in its enterprise-grade network surge may be behind this move. According to recent data from Sentiment, Hedera is currently in third place in terms of development activity, behind Polkadot and Cardano. 

So what

The race for developer talent to build out decentralized applications on Layer 1 networks like Hedera is on. The fact that so many are choosing this lesser-known (but significant) blockchain is something worth diving into. I intend to do a deep dive on this blockchain project at some point moving forward. My interest has been piqued by this move. 

The idea behind Hedera is relatively simple. Via an open-source network, Hedera allows developers to compete for the ability to deploy decentralized applications, with the same competition applying to users vying for transactions on this network. Some level of competition can spur interest among a certain personality type, making this network intriguing, to say the least.

Now what

On days like today, when broadly bearish sentiment continues to rein over any indications that bullish catalysts can be on the horizon, upside moves such as the one seen in Hedera are worth noting. This is a crypto project I've yet to explore deeply, but I intend to do so, on the basis of what appears to be relatively strong demand for these tokens. 

When times get tough, projects that stand out tend to get even more attention. Such appears to be the case with Hedera today.  

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post The 1 cryptocurrency that's on fire today appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Here are the top 10 ASX 200 shares today
• 3 amazing tech ETFs to buy and hold forever
• ASX 200 stuck in the red as investors wait for US lead
• PLS shares drop 5%: What's driving the move?
• With the gold price up on Monday, are Northern Star shares a good buy now?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

The market rout that drove the value of nearly all risk assets lower on Tuesday appears to have paused for stocks on Wednesday, but it's continuing in the world of cryptocurrencies. The Bureau of Labor Statistics delivered its August consumer price index report Tuesday, and the inflation rate clocked in at a higher-than-expected 8.3% year over year. That was lower than July's 8.5% result, but it still hit most major tokens hard. Continued selling pressure has resulted in declines in top tokens Bitcoin (CRYPTO: BTC) and Solana (CRYPTO: SOL) of 3.5% and 4.1%, respectively, over the past 24 hours, as of 11:15 a.m. ET Wednesday.

For investors in Terra Luna Classic (CRYPTO: LUNC), some disheartening token-specific news has driven a 21.6% decline over this same period. On Wednesday, a South Korean court issued arrest warrants  for Terraform Labs founder Do Kwon and five other involved individuals. It may be the last nail in the coffin for this embattled project, which had previously seen speculative buying pressure from traders.

So what

Nearly all talk about the potential for low-beta exposure to risk assets via cryptocurrencies is over. There has been an impressive degree of correlation between digital assets and equities over the past two years, which has been very unfavorable to crypto investors during this year's sell-off. While this correlation has diminished from its all-time peak, generally speaking, the same macroeconomic forces that drive equities higher or lower appear to have significant influence over the price action of many top tokens.

Bitcoin and Solana are both attracting a significant amount of institutional investor interest. Accordingly, during this period of de-risking, these assets could continue to see outflows until the rhetoric around monetary policy shifts. In general, more expensive money means less liquidity searching for growth. For these high-upside, higher-risk assets, that could spell continued downward pressure, at least over the near term.

For investors in Terra's ecosystem of tokens, word that arrest warrants have been issued is probably the last thing they wanted to hear. Whether one is involved in LUNC or other Terra-related assets, the advance of the regulatory probe to this degree is just the latest in a barrage of negative catalysts. Investors have reason to be concerned about the viability of the Terra ecosystem following this news, particularly given the turmoil within the Terra community.

Now what

Whether investors are considering quality crypto projects or more speculative options, it's a tough time to be an investor right now. Macro headwinds abound, providing a bearish backdrop for all digital assets. And when it comes to those with token-specific issues such as LUNC, now does not seem like the time to throw good money after bad.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Bitcoin and Solana are sinking today appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Why is the Bitcoin price down while shares hit highs?
• Why did the Bitcoin price just plunge more than 7%?

Chris MacDonald has positions in Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Solana. The Motley Fool Australia owns and has recommended Bitcoin and Solana. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.  

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Today's rather bumpy price action in the stock market is reverberating through cryptocurrencies once again. As of noon ET, Ethereum (CRYPTO: ETH), Dogecoin (CRYPTO: DOGE), and Solana (CRYPTO: SOL) declined 1.8%, 1.6% and 3.6%, respectively, over the past 24 hours.

Today's price action appears to be driven by increased concerns around higher interest rates, as shorter-dated bond yields hover around levels not seen since 2007, which was prior to the Great Recession. For these major cryptocurrencies, which have continued to trade in historically high correlation to equities, the pain is being felt across the sector. Additionally, record-high levels of open interest leverage have exacerbated the volatility with which cryptos move relative to equities.     

So what

Ethereum, Dogecoin, and Solana are among the most-traded cryptos and continue to garner significant attention from investors looking for signals of where the overall crypto market could be headed. Ethereum, the world's second-largest cryptocurrency, has seen meaningful volatility over the past month, as investors price in the network's upcoming The Merge, which will result in Ethereum shifting to a more energy-efficient proof-of-stake blockchain network.

Notably, Ethereum has recently seen its perpetual futures open interest hit an all-time high ahead of this big catalyst. Investors looking to put on leveraged derivatives trades are doing so en masse, increasing the likelihood of forced liquidations, which can create more volatility in the short term. While Dogecoin and Solana see significant interest from derivatives traders, Ethereum's massive volume is indicative of this token's status in the crypto market.

Now what

Crypto has historically been a more speculative asset class than equities, though driven by many of the same macro forces. Higher interest rates provide a headwind that will likely continue to affect both asset classes moving forward. 

That said, the prevalence of leverage in the crypto market could accelerate moves higher or lower in the near term. Thus, investors concerned about short-term volatility may be sitting this ride out. That's fair, considering the moves we've seen this year.

However, long-term investors may look at these outsized moves as potential buying opportunities, should one consider a bottoming process at some point soon. While it may be too soon to tell when the crypto market will start to turn higher, these levels are becoming increasingly enticing for those with a long investing time horizon.   

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Ethereum, Dogecoin, and Solana lost altitude on Thursday appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Here are the top 10 ASX 200 shares today
• 3 amazing tech ETFs to buy and hold forever
• ASX 200 stuck in the red as investors wait for US lead
• PLS shares drop 5%: What's driving the move?
• With the gold price up on Monday, are Northern Star shares a good buy now?

Chris MacDonald has positions in Ethereum and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ethereum, and Solana. The Motley Fool Australia owns and has recommended Ethereum and Solana. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.  

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

As investors continue to wade in the choppy cryptocurrency waters, a few top tokens continue to generate most of the interest in this sector. Among the key tokens of note for most has been Ethereum (CRYPTO: ETH), given this crypto's long-awaited merge, which will shift the Ethereum blockchain to a proof-of-stake network and transform the largest decentralized finance ecosystem in substantial ways.

As of 12:30 p.m. ET, Ethereum has moved 2.8% higher over the past 24 hours. Much of this move higher appears to be tied to the upcoming Ethereum merge, which now officially has a semi-hard date of mid-September to be completed.

We're now approximately a week past the Goerli testnet merge, which was a success. However, investors have been looking forward to the next step in the official merge process, which is the TTD (or Terminal Total Difficulty), the final stage in the shift to proof-of-stake. Recent reports indicate that the TTD for this merge should be 58750000000000000000000, with many approximating Sept. 15-16 as the likely date range for the shift.

So what

This Ethereum merge has involved a number of very technical steps to move to these final stages. Three testnet merges, which were generally very successful, indicate that validators and participants are generally on board with these upgrades. With an official timeline on the table, investors stand to benefit from greater certainty, something that has become very important to Ethereum investors of late.

A series of delays with this merge has driven significant volatility in Ether prices this year. Alongside other structural concerns in the crypto space, ETH hit a low of less than $900 per token in June, before rallying to nearly $1,700 per token at the time of this writing. This strong move off the bottom suggests more confidence in the structural integrity of the crypto market, as well as more excitement than apprehension right now around the merge.

Now what

There's always the potential this final merge could result in some snags for the Ethereum network. Accordingly, there's a rather polarized view being displayed on social media between investors who are concerned about these risks, and those who are very bullish about the benefits of this merge. 

Overall, I think this merge should prove to be more bullish than bearish. That said, it's likely to be volatile times ahead for the world's second-largest cryptocurrency by market capitalisation, at least over the next few weeks.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post What investors are watching with Ethereum right now appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Here are the top 10 ASX 200 shares today
• 3 amazing tech ETFs to buy and hold forever
• ASX 200 stuck in the red as investors wait for US lead
• PLS shares drop 5%: What's driving the move?
• With the gold price up on Monday, are Northern Star shares a good buy now?

Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

As of 1:30 p.m. ET, Helium (CRYPTO: HNT) had surged 8.1% higher over the past 24 hours. Interestingly, at today's intraday high, this token surged nearly 15% over a 24-hour period, as momentum in this little-known crypto has picked up.

Currently No. 53 in the cryptocurrency rankings by market capitalisation, Helium is a decentralized blockchain project aimed at promoting integration between the Internet of Things (IoT) and the blockchain. It appears upcoming announcements tied to this project's "HeliumHouse" event on Sept. 20 in New York is driving speculative investor interest in this token.

At this event, it's expected Helium may provide community demos and various updates about the project's roadmap and growth prospects.

So what

Helium's focus on integrating blockchain technology with the high-growth area of IoT is compelling from a long-term perspective. There are many other competing projects in this space (Helium is far from the only project to be focusing on this utility-oriented end market). However, the potential for disruption in how people think about traditional communications infrastructure and the tracking and storage of data provides a relatively large potential market for investors to get excited about.

Helium's upcoming event on Sept. 20 in New York could indeed outline some exciting new use cases and unveil intriguing opportunities this project is looking to tackle. However, with little in the way of any pre-released information about what will be announced, this catalyst appears to be more speculative than anything.

Now what

Helium's significant outperformance today is noteworthy, as most tokens appear to be trading in a lower-volatility fashion today. With little news driving this token outside of potential catalysts on the horizon, perhaps today's move is suspect. After all, some of the momentum this token saw earlier this morning has dissipated as of this afternoon's session.

That said, Helium's long-term prospects remain intriguing to many, as evidenced by today's price action. This is a token I've put on my watch list, and will follow for any big updates in the weeks to come. Until then, investors may want to be careful trading tokens that can move so violently on relatively inconsequential catalysts.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Helium crypto soars as investors expect big announcements in September appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Here are the top 10 ASX 200 shares today
• 3 amazing tech ETFs to buy and hold forever
• ASX 200 stuck in the red as investors wait for US lead
• PLS shares drop 5%: What's driving the move?
• With the gold price up on Monday, are Northern Star shares a good buy now?

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

It's been a rather difficult market to be a crypto investor of late. But despite nearly a week of consistent selling pressure, various large-cap cryptocurrencies are recovering nicely today. Ethereum (CRYPTO: ETH), Polkadot (CRYPTO: DOT) and Dogecoin (CRYPTO: DOGE) have surged 6.3%, 6.1%, and 3.1% higher, respectively, over the past 24 hours. 

These moves come as investors appear to be buying yet another bear market dip, as enthusiasm around key catalysts such as the upcoming Ethereum merge outweigh concerns around a heated debate brewing in the Ethereum community about whether validators should effectively censor certain transactions. 

Interestingly, Ethereum and Polkadot also took the top two spots in terms of most-developed blockchain ecosystems, according to a recent report by crypto analytics website Santiment using publicly available information. Investors appear keen to focus on blockchains with consistent and sustained development growth.

Dogecoin's price action, while more subdued than its peers, appears to align relatively closely with the overall price action of the market today.

So what

Ethereum, Polkadot, and Dogecoin are three tokens many investors watch closely as both high-growth projects and gauges of sentiment in the crypto world. Today's interesting shift toward a more bullish risk-on perspective from investors and traders is noteworthy, and all three tokens have benefited from this catalyst. But the growth metrics supporting Ethereum and Polkadot in particular are worth considering for investors taking a long-term view.

That's because while cryptos are difficult to value, many consider the true value of a given token as representative of the value of all projects on its blockchain. For Ethereum or Polkadot, which are tokens representing blockchains with massive ecosystems, more growth should mean, in theory, higher token prices. Continued and sustained growth over a long period of time, therefore, is important to see for investors with a long-term investing horizon.

Now what

For Ethereum and Polkadot specifically, the upcoming Ethereum merge, anticipated to take place in mid-September, is a massive catalyst. This upgrade will transition the Ethereum blockchain to a more energy-efficient proof-of-stake validation mechanism. Doing so carries great potential for improved efficiency over time, albeit with some specific risks.

While both tokens have rallied substantially off their June lows, it's clear the market is still taking a wait-and-see approach to how this merge will pan out. Despite today's bullish price action, some investors could be inclined to stay on the sidelines.

Although I think this upgrade should be a net positive, there are certainly risks involved for these tokens. Accordingly, it will be interesting to see how these tokens perform in the weeks to come.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Ethereum, Polkadot, and Dogecoin are rallying nicely today appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Here are the top 10 ASX 200 shares today
• 3 amazing tech ETFs to buy and hold forever
• ASX 200 stuck in the red as investors wait for US lead
• PLS shares drop 5%: What's driving the move?
• With the gold price up on Monday, are Northern Star shares a good buy now?

Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

On an otherwise down day in the cryptocurrency market, EOS (CRYPTO: EOS) is one token that's absolutely rocketing higher. As of 12:30 p.m. ET, EOS has soared 19% over the past 24 hours.

The move follows an interesting court ruling this week in which a judge from the Southern District of New York threw out a settlement between Block.one (the company that initially designed the EOS network) and investors. This $27.5 million settlement, which was proposed by Block.one and agreed to in June of this year, stemmed from a dispute with investors over whether an initial coin offering back in 2018 constituted an unregistered securities offering.

Other crypto projects have been mired in scrutiny from regulators and investors over alleged unregistered securities offerings, but this settlement was one of the more substantial the crypto community had seen. In addition, it's important to note that Block.one also previously settled with the U.S. Securities and Exchange Commission for $24 million over the same allegations.

So what

While the company sought to settle these claims to focus on moving its blockchain endeavors forward, it's clear that investors are paying close attention to what this ruling could mean for various projects embattled with legal issues. The fact that EOS is surging following this news indicates investors are taking the cue that the downside pressure from this headwind could be over. 

Now, EOS isn't the only token that's been caught up in allegations of unregistered securities offerings. Other projects, including XRP, are fighting similar battles. That said, the rather massive $4 billion raise Block.one managed to pull off in 2018, then the largest ever, made a settlement more likely. The ability for other projects to settle, given limited liquidity, remains uncertain.

Now what

The reason for this settlement being thrown out -- that the party representing investors didn't "adequately represent the interests of all investors" -- is interesting. From here, it will be interesting to see how this decision impacts ongoing litigation with other projects. Investors are clearly watching these cases closely, and EOS is one token that could represent the upside following potentially positive future rulings for other embattled crypto projects.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why cryptocurrency EOS soared 19% while the market took a breather today appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Here are the top 10 ASX 200 shares today
• 3 amazing tech ETFs to buy and hold forever
• ASX 200 stuck in the red as investors wait for US lead
• PLS shares drop 5%: What's driving the move?
• With the gold price up on Monday, are Northern Star shares a good buy now?

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

After initially surging more than 4% early this morning during Asian trading hours, top cryptocurrencies Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE) have each moved lower in early afternoon trading. As of 1 p.m. ET, these three tokens have slumped 1.5%, 2%, and 2.2%, respectively, over the past 24 hours.

Interestingly, the moves for these top tokens tracked the price action for global equity markets quite closely. Most major Asian indices moved higher overnight. However, U.S. equity markets have moved lower today as investors await the release of the most recent Federal Open Market Committee (FOMC) meeting minutes. Concerns around the forward hiking schedule of the Fed saw bond yields shoot higher today, affecting all risk assets, including major cryptocurrencies.

So what

Investors across all risk assets appear to be remaining cautious right now given uncertainty tied to the steps the Federal Reserve intends to take to bring down inflation. With bond yields moving to such a wild degree this year, investors have had a difficult time anticipating when a shift toward more accommodative monetary policy might come about.

For cryptocurrencies, it's clear that the very dovish monetary policy mandate from the Fed following the pandemic provided the fuel for an incredible bull market rally through the end of 2021. Accordingly, given the decline in higher-risk asset classes following a very hawkish shift, investors looking for the next surge in cheap money-fueled speculation await some additional clarity from the Federal Reserve as to how the central bank is thinking about the issues at hand.

Now what

In general, since the onset of the pandemic, the crypto market has traded in a relatively high correlation to equity markets. In fact, as of May this year, the crypto sector's correlation to equities hit its highest level ever. Accordingly, how stocks perform matters a great deal for the higher-beta (higher-volatility) performance of this higher-risk asset class.

Today's price action across both equity and crypto markets will certainly be interesting to watch. Investors might get a sneak peek into how these assets will perform through the end of the year, depending on the commentary provided this afternoon.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Bitcoin, Ethereum, and Dogecoin are slumping today appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Why is the Bitcoin price down while shares hit highs?
• Why did the Bitcoin price just plunge more than 7%?

Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Today, one of the more distinctive crypto projects is Chillz (CRYPTO: CHZ). This unique cryptocurrency backs a blockchain-based sports entertainment platform, Socios, which allows investors to have a say in the governance of their favorite sports brands. As it happens, the Chillz team and Socios have been on a partnership tear, leading to an impressive rally this month. Today, Chillz is up another 2.8% as of 12:15 p.m. ET. However, over the past month, this token has surged 65.5%, outpacing most major cryptos over this time frame.

On Aug. 1, which is really when Chillz started to pick up steam, Chillz announced a massive $102 million stake in FC Barcelona's Barca Studios. This deal amounts to roughly one-quarter of this endeavor, enabling Chillz to grow its presence in the sports-related NFT and metaverse worlds.

Today, crypto exchange ByBit announced that Chillz would be powering a Fan Token Kickoff for the platform. This contest is expected to run from Aug. 19 to Sep. 2 and give users chances to win 200,000 Tether (CRYPTO: USDT) stablecoins in prizes. 

So what

Given the still-nascent nature of the crypto space, partnerships play an important role for investors in gauging what the growth prospects of a given project are. With the Chillz team clearly in business development mode, this sports-related blockchain platform provider is certainly seeing an uptick in interest.

Now, other projects that have made significant investments in sports-related advertising deals haven't seen the sort of ROI investors might expect. Accordingly, time will tell how fruitful this investment ultimately is.

That said, for those bullish on the future of crypto in the sports and entertainment sector, Chillz is a project worth taking a look at. 

Now what

The whole concept of cryptocurrency being used as a governance or voting tool for fans is certainly an intriguing one. Given the high-profile partnership Chillz has been able to nab thus far, perhaps there's a lot to like.

That said, this project is one that appears to be very niche and prone to risks tied to increased competition and low barriers to entry in this space. Whether Chillz can continue to grow over time will depend on its success with its existing partnerships. Thus, right now, this token is one I'd view as a speculative bet, even with these key partnerships underway.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why cryptocurrency Chillz continues to surge higher today appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Here are the top 10 ASX 200 shares today
• 3 amazing tech ETFs to buy and hold forever
• ASX 200 stuck in the red as investors wait for US lead
• PLS shares drop 5%: What's driving the move?
• With the gold price up on Monday, are Northern Star shares a good buy now?

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Editor's note: This article has been corrected. Dogecoin is not an Ethereum-based token.

What happened

A bifurcation in performance is starting to be seen in the crypto sector. However, unlike the uneven performance we saw for most of this year, in which high-quality tokens outperformed their more speculative counterparts, the more recent rally that's played out over the past few weeks has seen more speculative meme tokens outperform on a relative basis.

Today, this trend has continued. As of 10:30 am ET, Dogecoin (CRYPTO: DOGE) surged 15.1% higher, despite relative weakness in many top-tier tokens. This move represents the addition of more than $1 billion in market capitalisation overnight, as this token's overall valuation has surged to more than $11 billion.

The key catalyst driving Dogecoin's outperformance appears to be bullish sentiment surrounding the upcoming Ethereum merge.

So what

The speculative interest that's prevailing in the crypto sector isn't isolated. In fact, in the equity market, there's been some rather impressive moves among what seemed to be forgotten meme stocks. Short sellers are once again on their heels, as the retail investor has seemingly stormed back with a vengeance. 

For the crypto sector, one that's inherently more speculative, meme tokens represent some of the highest-risk assets around. Accordingly, during speculative booms, this sector has seen outsized interest. Dogecoin's returns during previous bull market rallies speak for themselves.

Now what

From here, the question many investors have is whether this speculative momentum can be sustained for days, weeks, or months. At some point, rallies fizzle out and are replaced with periods of profit taking, consolidation, or a downturn. This year, we've seen what can happen when sentiment around hard-to-value tokens takes a hard 180.

It's important to remember that many macro headwinds remain on the horizon. And while the market is pricing in a soft landing, with a reversion toward a more accommodative monetary policy from the Fed, the continued tightening of financial conditions through the end of the year could provide significant resistance for retail traders. Thus, those looking to buy Dogecoin in this rally ought to take the necessary precautions, as the recovery could be as precarious as previous ones.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Dogecoin just added $1 billion of market cap on this catalyst appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Here are the top 10 ASX 200 shares today
• 3 amazing tech ETFs to buy and hold forever
• ASX 200 stuck in the red as investors wait for US lead
• PLS shares drop 5%: What's driving the move?
• With the gold price up on Monday, are Northern Star shares a good buy now?

Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

The sentiment shift we've seen play out among major cryptocurrencies appears to be continuing this week. Today, Bitcoin (CRYPTO: BTC), Cardano (CRYPTO: ADA), and Polkadot (CRYPTO: DOT) each surged higher to start the week, building on gains these tokens have seen since bottoming in mid-June. As of 2 p.m. ET, Bitcoin, Cardano, and Polkadot appreciated 3.5%, 4.9%, and 6.8%, respectively, over the past 24 hours.

Bitcoin actually rallied more aggressively this morning, breaching the $25,000 mark for the first time since June. Broader market sentiment, which has shifted in a bullish direction as investors focus on catalysts such as Ethereum's upcoming The Merge over headwinds related to insolvencies and structural issues in this space, appears to be the key factor Bitcoin investors care about right now.

Cardano has seen continued interest, as this network approaches its own key update: its Vasil hard fork. Founder Charles Hoskinson has reiterated that this upgrade is unlikely to be delayed any further, noting no key issues with testing thus far. 

That said, Polkadot's rise today is rather intriguing to consider, as a Polkadot-backed stablecoin, acala dollar (aUSD), was recently hacked, losing 99% of its value. As with many ecosystem-driven crypto projects, it appears investors are paying less attention to these headlines, choosing to focus on Polkadot's ties to Ethereum in this market rally.

So what

It's truly incredible to see the degree to which market sentiment has shifted in the crypto sector. Tokens such as Polkadot that encounter a hack, or tokens like Cardano that delay their upgrades, aren't being put in the penalty box by investors. It's risk-on again, with speculators, traders, and investors alike all jumping aboard. 

The multiweek nature of this crypto market rally has some investors thinking the bottom may be in. Whether this buying activity can hold up in the face of upcoming rate hikes and the potential for more macro headwinds remains unclear. However, this is the most exuberant the market has appeared since last year, to be sure.

Now what

We're in an interesting period of time, in which most investors have become self-proclaimed economists. As the Federal Reserve has accelerated its rate hiking schedule, various risky asset classes (such as crypto) have been hit hard during the first half of this year. However, given a lag between the Fed's last rate decision (July 27) and its next decision (Sept. 21), there's a time frame in which investors can ignore the rate hike talk and buy the dip.

That said, through the end of the year, more headwinds could materialize if the Fed doesn't stop hiking rates, like most in the market expect. This could be a Goldilocks period, which provides a significant bear market rally.

Alternatively, this rally could continue if expectations are proven correct. And should the major upgrades in store for Ethereum and Cardano prove fruitful, perhaps this rally is only the beginning. Time will tell.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Big buying activity boosting Bitcoin, Cardano, and Polkadot today appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Why is the Bitcoin price down while shares hit highs?
• Why did the Bitcoin price just plunge more than 7%?

Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

The key catalyst driving Flow higher is news that its blockchain technology and Dapper Wallet product will play an integral role in Meta's (NASDAQ: META) move into the NFT space. Instagram's photo-sharing application will now support posting of NFTs using the Flow blockchain, providing a big boost for this project that was designed from the start to revolutionize the NFT space.

Today's rally in crypto markets has taken many investors by surprise, given the "good news is bad news" reality we're now seeing play out. Last week's strong jobs numbers indicated to investors that the Federal Reserve could be less likely to take its foot off the gas pedal when it comes to rate hikes. Nonetheless, equity and crypto markets have surged higher, with the crypto sector up 3.8% in aggregate over the past 24 hours, as of 10:15 a.m. ET on Monday.

However, one cryptocurrency that has not-so-quietly moved into a top-30 spot in the crypto market cap rankings is Flow (CRYPTO: FLOW). This crypto project linked to non-fungible tokens (NFTs) has surged 13.3% over the past 24 hours as of 10:15 a.m. ET this morning. Over the past week, this token's performance is even more notable, with gains of approximately 50% over this time frame.

So what

Flow's blockchain technology appears to have caught the attention of Meta's upper brass, with this purpose-built NFT platform getting the nod to be used in the company's impressive NFT rollout. Reportedly, this international NFT expansion to more than 100 countries will enable users from around the world to post their non-fungible tokens minted on the Flow blockchain. 

Dapper Labs, the company behind the Flow blockchain, is well known for its portfolio of top NFT projects. Whether it's CryptoKitties, NBA Top Shot, or UFC Strike, NFT investors have long sought out Flow's collectibles, given this project's first-mover status in many sports-related collectible NFTs. Instagram appears to be partnering with Flow given its position in what could be a massive market over the long term.

Now what

How successful Instagram's foray into the world of NFTs will be is something that will be determined over time. But the vote of confidence that Flow investors received by this integration is noteworthy. From a technological standpoint, there's a lot investors have to cheer about with this partnership.

Key metrics investors should watch from here are NFT transaction volumes on Flow's blockchain, as well as user growth and adoption over time. Right now, Flow is one token with some serious momentum. Accordingly, should this broad-based rally continue, this is one project with outsize potential, at least in the near term.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post This NFT-linked cryptocurrency just surged into a top-30 spot appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Why DroneShield, Lendlease, PlaySide, and ResMed shares are tumbling today
• ASX investors: Are you overinvested in the Magnificent 7 without knowing it?
• SpaceX IPO: What are dual-class shares?

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Chris MacDonald has positions in Meta Platforms, Inc.The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Today's price action among various altcoins that have outpaced the broader market by a wide margin are grabbing attention. As of noon ET, Polkadot (CRYPTO: DOT), Solana (CRYPTO: SOL), and Cardano (CRYPTO: ADA) are tokens that are gaining steam, surging 7.2%, 5.1%, and 2.7%, respectively, over the past 24 hours. 

Amid a range of bullish catalysts that have taken the cryptocurrency sector higher, many investors remain focused on Ethereum's upcoming Merge. With this update set to revolutionize the world's largest decentralized finance (DeFi) ecosystem via a move to proof-of-stake consensus validation, other proof-of-stake altcoins are starting to pick up steam as Ethereum alternatives.

Polkadot's surge appears to be tied to recent reports that the Web3 Foundation exceeded 400 project grants on Polkadot. This suggests that Polkadot's ecosystem growth rate could be better than many investors expect. 

Solana has moved higher, brushing off concerns around a controversial report released this past weekend that indicated much of the DeFi growth the Solana ecosystem may have seen over the past year was fraudulent. Investors are instead seemingly choosing to focus on the positives with Solana today, including bullish commentary from a Solana Labs co-founder around the future of the non-fungible token sector, and where Solana fits into this future.

Finally, Cardano has continued to battle headwinds of its own, tied to delays with the network's Vasil hard fork. However, data showing a surge in Cardano wallets (to more than 3.5 million), and developer interest in the Cardano blockchain (which makes this among the most developed blockchains in the world), is prompting buying interest from investors today.

So what

Polkadot, Solana, and Cardano are three projects that have been called "Ethereum killer" projects in the past, due to the ecosystem growth they have seen over time. Despite broad-based token price declines in the crypto sector, activity on these blockchains has certainly enticed investors to stay invested during this period of volatility. If activity is any gauge, these altcoins could be poised for outsize strength during the next crypto rebound, which may or may not be underway right now.

That said, concerns around the quality of the data currently being published on the crypto sector does provide investors with some pause. Reports that Solana developers may have been able to fake total value locked metrics makes differentiating crypto projects with "real" growth versus those with exaggerated growth more of a task.

Now what

This risk-on rally we've seen play out in recent weeks has led to impressive rallies across a number of select cryptocurrencies. The extent to which this crypto rally, which has more than kept pace with the rise in stocks of late, can continue remains to be seen.

That said, these three projects are ones worth keeping on the radar. For long-term investors looking for growth, these cryptos are ones with growth data that appears to support a growing valuation over time. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Polkadot, Solana, and Cardano are 3 altcoins in focus today appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Here are the top 10 ASX 200 shares today
• 3 amazing tech ETFs to buy and hold forever
• ASX 200 stuck in the red as investors wait for US lead
• PLS shares drop 5%: What's driving the move?
• With the gold price up on Monday, are Northern Star shares a good buy now?

Chris MacDonald has positions in Ethereum and Solana.  The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Solana. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.