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Bitcoin, Ethereum, Dogecoin Get Caught Up In Inflation Angst — Analysts Expect Near-Term


Bitcoin (CRYPTO: BTC) slipped nearly 5% Monday night as the global cryptocurrency market cap declined 4.39% to $2.74 trillion.

What Happened: The apex coin traded 4.99% lower at $62.724.09 over 24 hours at press time. For the week, BTC has fallen 7.31%.

Ethereum (CRYPTO: ETH) fell 4.84% to $4,456.83 over 24 hours. Over a seven-day trailing period, it has shrunk 7.03%.

Dogecoin (CRYPTO: DOGE) was down 4.06% to $0.25 over 24 hours. The meme cryptocurrency has fallen 10.33% over the last seven days.

Rival Shiba Inu fell 1.3% to $0.00005218 over 24 hours. Over the week, it has lost 6.28% of its value.

The top gainers over 24 hours included UMA, Huobi Token, and Revain, as per CoinMarketCap data.

UMA soared 21.47% to $20.19, Huobi Token rose 3.67% to $10.35, and Revain was up 3.57% to $0.0154 in the period.

See Also: How To Buy Bitcoin (BTC)

Why It Matters: Expectations that the U.S. Federal Reserve might turn hawkish have driven the U.S. Dollar Currency Index to 95.437, its highest level since July 2020, reported Reuters.

The index is a measure of the dollar’s strength against a basket of six of its peer currencies. The rise of the dollar comes amid the backdrop of rising prices with the Consumer Price Index at its highest level in 30 years.

On Monday, the S&P 500 closed nearly flat. It was down 0.0011% at 4,682.80. The Nasdaq followed the same course — down 0.045% at 15,853.85.

The “turbulence from traditional markets spilled into crypto,” said Kaiko Research, a cryptocurrency market data provider in a newsletter. 

“Bitcoin reversed course as major U.S. stocks tumbled in a sharp U-turn from risk-on to risk-off sentiment,” wrote Kaiko Research. 

Bitcoin seems to have largely shrugged off “Taproot” — the first major upgrade to the apex coin’s network in four years.

“Bitcoin prices were supported after a key weekend upgrade helped pave the way for directly providing smart contracts. It is a nice upgrade for Bitcoin, but won’t really deter smart contract usage from Ethereum and Solana,” wrote Edward Moya, Oanda’s senior market analyst, in an emailed note. 

As per Moya, Bitcoin is still primarily a “store of value trade” and it should benefit from the inflationary pressures.

There are some voices among analysts, who think some near-term pain is in store for investors. 

Amsterdam-based trader Michaël van de Poppe said he was heavily bullish on BTC mid/long-term, but “weekly doesn’t look too great and daily doesn’t either.”

Cryptocurrency trader Lark Davis noted that ETH has “broken its up trend.”

Read Next: IoTex, Loopring, Litecoin And More: These Were The Top-Gaining Cryptos Last Week

Read More: Bitcoin, Ethereum, Dogecoin Get Caught Up In Inflation Angst — Analysts Expect Near-Term

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