Why Ethereum, Dogecoin, and Bitcoin Cash Are Sluggish Today

Many of the most notable large cryptocurrencies are facing significant selling pressure in the market today. Ethereum (ETH -4.19%), Dogecoin (viceroy -6.76%) and bitcoin cash (BCH -4.36%) As of 2:30 PM ET, they were down 4.5%, 5.8%, and 3.8%, respectively, over the past 24 hours.

The move comes despite relatively strong price action in the stock market today, with more speculative meme stocks surging. When cryptocurrencies are closely tied to these assets (especially when talking about meme tokens like Dogecoin), questions need to be asked. What is going on here?

It appears that some uncertainty surrounding the Federal Reserve’s (Fed) Open Market Committee meeting scheduled for this week has led to declines in major tokens, sparking uncertainty about the macro backdrop in this space. But there are also some key token-specific fundamentals that seem to come into play. Let’s take a look at which of these three top tokens is causing confusion today.

Macro/regulatory uncertainty remains

Ethereum’s status as the world’s second-largest cryptocurrency means it is a top digital asset attracting attention from many existing investors looking to diversify into the sector. This also means that regulators will tend to pay more attention to these tokens, especially as a future decision on the Ethereum ETF approaches. Despite other jurisdictions already approving exchange-traded products targeting Ethereum, uncertainty over the approval of such ETFs in the United States continues to be high.

Additionally, the lawsuit filed by Ethereum developer Consensys against the SEC has attracted a lot of attention in recent days. The lawsuit aims to prevent what developers call an “unlawful seizure of rights,” a move applauded by many in the cryptocurrency community and comes ahead of a major regulatory decision in this area.

Other regulatory implications of various moves by exchanges, such as: coinbase (coin -7.68%) The listing of Dogecoin futures among other products remains to be seen. As of now, these three tokens are likely to face massive scrutiny across the board, and it’s clear that investors are taking a more cautious approach to these assets in today’s session.

These regulatory issues arose several years ago at Mt. We can conclude with the news that a recent payment update has been provided for claims involving Bitcoin Cash and other tokens for those affected by the Gox incident. This update indicates that the billing completion date has been brought forward, which will likely lead to selling pressure on Bitcoin Cash, at least in the short term.

Will this bearish momentum continue?

As of now, there are a lot of regulatory headwinds that investors appear to be pricing in for the cryptocurrency sector. These three tokens probably have the most unique and notable headwinds. However, it is also true that the Securities and Exchange Commission has continued to lead a hawkish narrative on this area. This can mean continued uncertainty in the short term, which often leads to volatility like we are seeing today.

It remains to be seen whether this selling pressure will result in an immediate rebound. The cryptocurrency market continues to receive impressive interest, and even though capital flows into digital assets appear to be slowing, these projects are worth considering. So for now I’ll keep this project on my watchlist and provide updates as they come.