Dogecoin, Solana Leading Crypto Majors, as Bitcoin drops Below $66K

Token prices are probably being affected by the absence of any quick triggers to support markets in the near future, according to one trader.

Important tokens had sharp drops during Tuesday’s Asian trading hours, including Bitcoin and Ether. Bullish sentiment was affected by continuous profit-taking and withdrawals from Bitcoin ETFs that are listed in the United States.

Notable losses in tokens like Dogecoin (DOGE) and Solana’s SOL led to the slump.

Due to ongoing profit-taking and another day of net withdrawals from U.S.-listed bitcoin exchange-traded funds (ETFs) on Monday, major tokens fell during Asia trading hours on Tuesday, dampening investor optimism.

Bitcoin (BTC) lost all of its Monday gains, plunging to about $66,500, and ether (ETH) lost all of last week’s gains, collapsing to $3,400. BTC has been testing the medium-term uptrend by circling around the 50-day moving average, which is currently at $66,000. Meanwhile, BTC ETFs continued their terrible run from last week with net outflows of $145 million.

According to CoinGecko data, the two most lost major tokens in the last 24 hours were Dogecoin (DOGE) and Solana’s SOL, which both saw losses of up to 9%. While BNB Chain’s BNB excelled with losses of just 1.5%, Tonne Network’s TONNE plummeted 5%.

A liquid index of the biggest tokens, except stablecoins, the widely-used CoinDesk 20 (CD20), is down 4.2%.

For the first time in a month, Bitcoin fell below $65,000 last week as net outflows from ETFs exceeded $500 million as the Federal Reserve hinted at a single interest rate cut in 2024.

Neil Roarty, an analyst at the investing platform Stocklytics, told CoinDesk via email that “other factors haven’t helped.” “Traders pulled out of the euro due to the political uncertainty created.

That’s what he expressed “serious areas of strength for a will in general come down on Bitcoin” and that “fundamentally lower loan costs and a more vulnerable dollar would be important to push BTC closer to the $70,000 mark.”

In other news, FxPro senior market analyst Alex Kuptsikevich cautioned against an overall pessimistic outlook, noting that positive events with ether ETFs did not significantly support ETH prices.

After momentarily falling below its 50-day moving average on Friday, Ethereum was able to gain more than 6% due to positive anticipation over the ETF. But given that altcoins have lost around 1.5% of their value since Monday morning, one should be cautious about their short-term performance, he wrote in an email on Tuesday.”

Kuptsikevich said, “Bears will likely advantage more from the expanded liquidity on weekdays than from bulls since it’ll increment offering interest.”

Dealers of Dogecoin Seem to Short Token as Meme Coin Frenzy Reduces

According to research, Dogecoin financing rates are beginning to turn negative as investors steer clear of riskier assets in the face of low volatility in the overall cryptocurrency market.

The best meme token on the crypto showcase is starting to draw brief bets within the middle of a common downturn within the meme industry, which may be concerning.

Dogecoin financing rates have been decay since Tuesday, agreeing to Coinalyze insights. As of Thursday, they had dropped to -0.0027%, which was levels last seen in October 2023. The difference between prices in the futures and spot markets is used by traders to determine their funding rates, which are paid on a regular basis.

Indeed in spite of the fact that these rates are not exceptionally high, their determined decrease in couple with cost decreases recommends a bleak showcase environment. Over the past week, DOGEcoin has lost 12%, wiping out all of its gains from March.

The amount of remarkable prospects agreements, or Dogecoin open interest, dropped from about $800 million on Monday to $611 million as of Thursday, proposing a decrease in interest in the tokens.

In March, there were a few eight-hour trading sessions when the rates momentarily turned negative, but not for as long as they have this week.

Over the course of seven days, tokens in the meme coin industry have lost up to 40% of their value, warning investors to switch from risky tokens to bitcoin and stablecoins.

Memecoins tend to lose an even higher share of their value when the cost of BTC falls, Noted analyst Neil Roarty in an email to CoinDesk on Thursday from the trading platform Stocklytics. Any idea for a memecoin summer may have to be delay.

This week, it was mentioned that Dogecoin futures traders had their worst day since May 2021 when $60 million worth of long positions in the token were liquidated, which is remarkably more than in bitcoin (BTC) futures.

These declines coincided with a decline in the price of bitcoin (BTC) over the previous two weeks due to $2 billion in sales by major holders, net withdrawals from exchange-traded funds (ETFs) with U.S. listings, and strengthening dollar values.