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

It wouldn't be a roller-coaster ride without the ups and downs.

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

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on International Stock News

US economy and sharemarket with piggy bank
International Stock News

What on earth is going on with the US stock market?

Let's dive in and see.

Read more »

A graphic illustration with the words NASDAQ atop a US city and currency
International Stock News

Why Big Tech became a huge wreck across the Nasdaq last night

Jerome Powell and his compadres shocked the market with an unexpected outlook.

Read more »

a man sits at a bar leaning sadly on his basketball wearing a US flag sticker on his cheekbone near a half drunk beer and looking despondent as though his basketball team has just lost a game.
International Stock News

The Dow Jones is on its longest losing streak in 46 years. What's going on?

The Dow is on a losing streak in the middle of a boom.

Read more »

A person leans over to whisper a secret to a colleague during a meeting.
International Stock News

Despite recent news, analysts still say Nvidia stock is a buy. Here's why

Last month, Nvidia was the most valuable company in the world.

Read more »

A young girl looks up and balances a pencil on her nose, while thinking about a decision she has to make.
International Stock News

After gaining 2,100%, is Nvidia stock done?

Nvidia has taken off as one of the key players in chips and services for artificial intelligence.

Read more »

A young couple in the back of a convertible car each raise a single arm in the air whilst enjoying a drive along the road.
International Stock News

Why Tesla stock just jumped again

Wedbush's Dan Ives thinks the stock will keep moving higher thanks to Tesla's self-driving technology.

Read more »

An older couple hold hands as they bounce happily high in the air.
International Stock News

Why the Alphabet share price just leapt higher

Investors seem to hope the Trump administration will be friendly to Alphabet and its big-tech peers.

Read more »

A panel of four judges hold up cards all showing the perfect score of ten out of ten
International Stock News

Top Wall Street analyst calls Tesla stock a top pick. Is it a buy now?

Tesla shares have been on fire lately, rising more than 70% since the November 5 election.

Read more »