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HomeMarketsCrypto Market Review, August 16

Crypto Market Review, August 16

Armand Sirignan

Meme Currency Still Rising While Cryptocurrency Market Targets Potential Reversal

The memetic currency’s rally in the market continues as Dogecoin has become the most profitable asset on the market in the last 24 hours, gaining more than 15%. The rally of memecurrencies has continued for the past three days as SHIB has also been able to recover some of its previously lost value.

The battle between Dogecoin and Shiba Inu

Over the past few days, the market has seen a battle between two of the biggest memetic currencies on the market for the top 10 spot on the list of assets sorted by market capitalization. Shiba Inu, who has an mcap of $8.7 billion, is actively promoting Polkadot, where he has an asset of $9.8 billion at the time of writing.

Unfortunately for SHIB holders, it is unlikely that Meme Tokens will suddenly replace the old classic Dogecoin, which currently has a market cap of almost $12 billion.

DOGE chart
Source: Trading View

To reach Dogecoin’s level, Shiba Inu would need a price increase of more than 40%, bringing it closer to DOGE’s $12 billion. Given the correlation between the two memetic currencies, which typically move evenly in the market, this scenario is unlikely to become a reality.

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One of the main drivers for both assets today is the high demand for risk exposure. This appeared on the market last week. The market was hungry for risk, but given the lack of inflow into the market, the whole trend is most likely to fade.

A new wave of investors leaving the market

Following the news of Michael Barry leaving the financial markets and deciding to sell all of his holdings, we have seen an outflow of funds from the crypto markets with institutional investors taking over $17 million in assets from the industry. increase.

While the numbers don’t look that big, the lack of inflows and emergence of outflows could be the beginning of a trend in the coming weeks or months. , there is an acceleration of capital outflows.

What drives the reversal

As we said before, a rising US dollar could be the next driving force behind a reversal in the cryptocurrency market. The DXY index successfully bounced back from its local support level and started to rise, gaining more than 1.6% against its value.

Index growth is usually a bearish sign for the digital asset market as it causes a devaluation of all assets against the currency. In addition, investors are shifting their money to more conservative investment options such as bonds.

At the time of writing, Bitcoin is trading at $23,928 and has been moving in the rising consolidation channel for the past few weeks. Fortunately, the first cryptocurrency was able to stay in the range, losing about 1% of its value in the last 24 hours.

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