Major cryptocurrencies fell again on Friday after a two-day rally. Global market capitalization was down 1.14% to $2.05 trillion as of 2:19 a.m. ET. The downtrend comes after the latest decline in tech stocks.
However, the crypto memes Dogecoin and Shiba Inu bucked the trend. While SHIB was up 1.78%, DOGE climbed 19.40%, continuing a rally sparked by rumors that Tesla was preparing to accept the same coins as payment for its electric vehicles.
Bitcoin fell 1.95% to $42,888 after trading in the green for two straight days. However, investors are still confident in the potential of the top coin to hit $75,000 this year.
Ethereum also followed the slide and was trading at $3,293. With the exception of Binance Coin, Cardano, and Polkadot, all of the top 10 digital tokens plunged, according to data from CoinMarketCap.
Experts warned investors to remain cautious in the face of inflation and a slow economic recovery.
“A cautiously optimistic stance seems to be investors’ preferred stance at the moment, taking into account that (US Fed Chairman Jerome) Powell had backed off from his initial hawkish policies, and that inflation and a slow economic recovery remain of great concern to all,” the CoinDCX research team said. International business time. “With risk assets having bounced off the oversold region and the RSI charting a strong uptrend, we could be poised for a potential move higher.”
In other news, global cryptocurrency exchange Coinbase said it was buying crypto futures exchange, FairX, to offer crypto derivatives to traders. Crypto derivatives trading, which presents opportunities for futures and options platforms, has grown rapidly.
The crypto market is extremely volatile and experts advise investors not to make decisions based on the sudden price change.