Today’s Fluctuations: Bitcoin, Ethereum, and Dogecoin Experience a Drop Followed by a Surge
Bitcoin, Ethereum and Dogecoin have seen significant price swings over the past day, dropping around 7% in the span of an hour yesterday afternoon. The decline took place just before reports emerged of large transactions from two dormant crypto accounts tied to defunct exchange Mt. Gox and the US government. Blockchain analytics firm Arkham carried out the investigation into the transactions. Although the two bulk transfers were not thought to be linked, it’s unclear what specifically caused the market move, which resulted in mass liquidations and it’s suggested that several hundred millions of dollars were involved. Experts believe that leveraged positions played a part. However, reports that the tokens are working their way back to trading even once again bode well for crypto bulls. They appear to be taking advantage of what they see as a dip and using a “buy-the-dip” mentality to accumulate tokens. The bulls are hoping the bull rally we’ve seen in the digital asset market so far in 2022 still has a way to go. Nonetheless, there are many macro factors that could still disrupt the impressive rally seen this year.