Why Bitcoin, Ethereum and Dogecoin are getting back on top

Why Bitcoin, Ethereum and Dogecoin are climbing the slope - business stocks shutterstock 1402151111 1 770x433 1The broader cryptocurrency market has been rising in trading for the past few days. Bitcoin, Ethereum and Dogecoin are back on the rise.

Reports that some progress has been made on the peace talks between Russia and Ukraine appear to be fueling a rebound of bullish momentum. It is also possible that investors anticipated the relatively small rise in interest rates since the Federal Reserve meeting. 

So what's the reason?

Comments from Russian and Ukrainian representatives today suggested that some progress towards a compromise has been made between the nations. A potential agreement between the countries currently appears to focus on Ukraine agreeing not to attempt to join the North Atlantic Treaty Organization (NATO) military alliance while retaining its own military and naval forces.

Taking the Russia-Ukraine situation off the table as a potential risk factor could lead to continued bullish momentum for cryptocurrencies and stocks, but too much optimism about an orderly resolution of the invasion could also be a risk factor in itself. While it is possible that the negotiations will lead to Russia ending its attack on Ukraine, investors should proceed with the knowledge that the prospects on that front are uncertain and difficult to predict. 

It also appears that the Investors they are pouring back into cryptocurrencies and stocks with the expectation that the Fed's expected interest rate hike won't be as disruptive as some have feared. While it may not appear that lending rates necessarily have a strong connection with the price of cryptocurrencies, rising interest rates have historically caused investors to move away from risky investments in pursuit of safer returns. If the Fed implements relatively mild rate hikes at today's meeting, this development would likely be a positive catalyst for the entire crypto space, but there is also limited visibility into how the general rate environment will shake for the rest of the year. 'year.

Now what to expect

Bitcoin ranks as the largest cryptocurrency by valuation and currently has a market capitalization of around $ 769,4 billion.

Meanwhile, Ethereum ranks second with a market cap of $ 324,6 billion, and Dogecoin has a market cap of $ 15,2 billion and ranks as the 13th largest cryptocurrency by valuation. The respective tokens will likely continue to see trading movements in line with the broader market momentum, but each cryptocurrency has distinct characteristics and performance catalysts that will shape the price action.

Bitcoin has spearheaded the broader cryptocurrency movement and attracted a steady supporter base, and Ethereum has also seen a massive surge in support thanks to the growing adoption of its application building services. Meanwhile, Dogecoin is a meme phenomenon that has benefited from Elon Musk's support - including an earlier statement from Tesla's CEO that he would film himself eating a McDonald's burger if the restaurant giant started accepting the token as payment. 

Blockchain-based payment methods and services are seeing increasing adoption, but the overall market remains young and highly volatile. While general market movements are likely to continue to play a role in the respective performances of Bitcoin, Ether and Dogecoin, investors should keep in mind each token's individual strengths and weaknesses if they buy cryptocurrencies.