Bitcoin, Ethereum, and Dogecoin surge higher as crypto markets recover

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

two people sit side by side on a rollercoaster ride with their hands raised in the air and happy smiles on their faces

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

What happened?

Many of the most-watched cryptocurrencies are seeing interest rebound today, as investors continue to digest macro data and adjust their portfolios according to the aggregate risk profile the market is comfortable with. Top tokens Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) appreciated 1.8% and 3.5%, respectively, over the past 24 hours as of 11 a.m. ET.

These moves generally aligned with the overall crypto market, which surged 3% higher over this same time frame. These moves also correlated with the price action we’ve seen in recent days, which shows Bitcoin as a lower-beta play relative to the overall market on up days and down days as well.

For meme token Dogecoin (CRYPTO: DOGE), a surge in risk-on appetite from traders has propelled this token 4.8% higher over the past 24 hours. Additional support for Dogecoin from talking heads such as [American entrepreneur] Mark Cuban, and wider acceptance of Dogecoin as a means of payment from various corporations, has continued to spur interest in this meme token over the past day.

So what?

Today marks the first day in a while where we’re seeing cryptocurrencies really diverge from risk assets in the stock market in terms of returns. The directional moves of these top tokens do not align with most high-growth stocks today, which are down as of late morning. Accordingly, perhaps crypto bulls asserting that digital tokens could be viewed as a market hedge have a leg to stand on.

It appears investors are once again focusing on the relative risk-reward of cryptocurrencies relative to equities today. As investors continue to diversify their portfolios, allocations toward digital currencies appear to be holding steady. Currently, the entire crypto market continues to hover around the $2 trillion mark, with these three tokens collectively making up more than half of the overall market.

Now what?

Bitcoin and Ethereum remain the two top tokens most crypto investors watch closely. The daily price action of these tokens drives much of the sentiment across the broader crypto markets. That being said, the outsize moves some smaller tokens such as Dogecoin are making today provide an interesting bull thesis for those looking to take on additional risk.

Given this macro environment, adding more risk to one’s portfolio does seem like a dicey game to play. However, the divergence we’re seeing once again among crypto assets relative to stocks does add to the intrigue of this sector for investors.

As always, investors looking to put some money to work in cryptocurrencies should be aware of the risks, and they should practice proper portfolio discipline in sizing positions appropriately and ensuring risk management protocols are in place.

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

The post Bitcoin, Ethereum, and Dogecoin surge higher as crypto markets recover appeared first on The Motley Fool Australia.

Should you invest $1,000 in Bitcoin right now?

Before you consider Bitcoin, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bitcoin wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Chris MacDonald owns Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

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



from The Motley Fool Australia https://ift.tt/3K6zEYC

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s