- There is no doubt that Bitcoin is achieving massive success at the moment, having just reachedan all-time high of US$66,930.39.
- On the back of bitcoins ETF news you’d expect it to continue to rise and yet since October 18 it’s taken a dive sinking back to US$0.24
- Since September 2, Cardano has gone from US$3.03 to its current price of US$2.22 – a drop of around 27 percent.
There’s a strange phenomenon happening in the cryptocurrency market right now. You see the general cryptocurrency market usually rises and falls on the back of the worlds biggest cryptocurrency - Bitcoin.
There is no doubt that Bitcoin is achieving massive success at the moment, having just reached an all-time high of US$66,930.39. Historically, that means that digital currencies like Dogecoin (DOGE), Cardano (ADA) and Ethereum (ETH) amongst others, should conceivably follow suit.
We saw this happen in the middle of this year when bitcoin crashed from it then all-time high of around US$65,000 to lose half its value within a couple of months.
Why are Cardano, Dogecoin Slipping Despite Bitcoin's All Time High
Although not immediate, Bitcoin’s crash was the catalyst for a wider market crash which saw other cryptos also lose more than half their value.
Then in late July when bitcoin begin to re-emerge from the doldrums, other cryptocurrencies followed suit and the last three or four months has seen the wider cryptocurrency market rise in price.
Bitcoin ETF Pushes All Time High
We can’t talk about bitcoins recent price hike which is sent at beyond US$65,000 without talking about the probable influence of the securities and exchange commission‘s decision to allow a bitcoin ETF (electronically traded fund) to be included on the New York Stock Exchange.
The reason this is such a big deal is it legitimises bitcoin once again taking it from an asset which many considered fringe to a more legitimate widely well considered and trusted asset.
But then what’s the story with Dogecoin and Cardano, whose prices haven’t seemed to be buoyed by Bitcoin’s good fortune?
For Dogecoin, this wasn’t initially the case. On October 12 the memecoin’s price was US$0.22. Immediately after this it’s price rallied and by October 18, DOGE’s price had risen to US$0.27.
On the back of bitcoins ETF news you’d expect it to continue to rise and yet since October 18 it’s taken a dive sinking back to US$0.24 - Not a huge drop but curious nonetheless.
The most likely reason for the recent drop in price is a cell off from investors trying to capitalise on the gains that this memecoin has made over the past few months.
Regardless – Dogecoin is still ranked ninth with a market of US$33,583,194,303.
Image Source: © Nickolayv | Megapixl.com
Then we’ve got Cardano who, along with other smart contract-driven block chains like Solano and Fantom, have seen tremendous growth in 2021, largely as a result of issues surrounding Ethereum‘s ageing platform where transactions are slow and expensive.
This is open the door to users who wish to utilise similar platforms like Cardano - who offer a similar service to Ethereum - but with a much more updated blockchain, which means faster and cheaper transactions.
Indeed Cardano was one of those platforms that along with bitcoin began to rally again in late July, with its price shooting from US$1.08, on July 17, to US$3.03 on September 2 – an almost tripling in price in just over a month.
However since September 2, Cardano has gone from US$3.03 to its current price of US$2.22 – a drop of around 24.75% percent.
Cardano’s price drop likely has something to do with its founder Charles Hoskinson, who announced at a conference earlier this week that he believes the US is trying to eradicate cryptocurrency.
Hoskinson’s statement comes amidst concerns regarding the US government wanting to push regulations onto cryptocurrency exchanges and cryptocurrency trading and investment.
Despite these recent dives from Cardano and Dogecoin, it’s hard to imagine that these coins won’t continue to rise along with Bitcoin’s future success.