Despite the last two cryptocurrency crashes, investors are confidently returning to the cryptocurrency market.
While bitcoin and ether remain the top two cryptocurrencies by capitalization, the attention of crypto investors is currently shifting to several exotic cryptocurrencies, including dogecoin and shiba inu, according to Marketwatch analysis.
The same stocks are gaining ground
For a while, we talked a lot about what we called the same stocks on the Wall Street stock market, the values of which fell so low that they became something of a plaything of social media trading communities: Gamestop, Bed Bath and beyond. etc.
Imagine that they are gaining momentum on Wall Street at the moment and tend to clearly outperform a market that remains a little hesitant. We find the same trend in the cryptocurrency market. Let’s put aside bitcoin and ether, whose volatility has dropped a lot recently, to look at other cryptocurrencies.
According to Coinmarketcap, over the past seven days, the price of bitcoin has risen by 6%, ether by 15%, while dogecoin, the famous cryptocurrency that Elon Musk wanted to use to finance lunar travel, has risen in price by 25%. inu, a similar dog-headed cryptocurrency, surged 33%.
Analysts believe we are starting to have some portfolio diversification among crypto investors to have solid and slightly exotic stakes to take advantage of the stronger momentum. But be careful, we are talking about cryptocurrencies that are not worth a dime, so they really need to be handled with endless precautions.
Get access to riskier assets
These doggy cryptocurrencies are benefiting from the positive footprint of what is happening with the big cryptocurrencies, the general optimism of the market, the future evolution of the Ethereum blockchain… Similarly, the rise of dogecoin can be attributed to the launch of Dogechain, a blockchain that uses this cryptocurrency to develop decentralized applications.
“Retail investors are looking at all of these positive signs and are using them as an opportunity to access riskier crypto assets that they hope will give them better returns,” said LMAX market strategist Joel Krueger.
But be careful, the soufflé can fall quite quickly and in the event of a reversal or doubt in the markets, these will be the first assets to suffer from the “flight to quality” movement (return to safe values), but the power is 10 or 100.