What happened
The crypto market has rallied significantly today, with positive sentiment once again delivering positive price action for various top cryptocurrencies. As of 4 p.m. ET, Ethereum ( ETH 1.50% ), Dogecoin ( DOGE -0.54% ), and THORChain ( RUNE ) surged 4.7%, 1%, and 5.2%, respectively, over the past 24 hours. These aggregate moves essentially approximated the overall market, which was up about 2.5% over the same time period.
Ethereum, which still runs with a proof-of-work consensus mechanism, has benefited from the recent ruling from the European Union that tokens relying on proof-of-work mining would not be hindered. Previously, a proposal under the Markets in Crypto-Assets (MiCA) legislative framework had a provision that would have limited the use of proof-of-work cryptocurrencies in the region.
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THORChain, a newly listed project built on the Cosmos blockchain, continues its surge higher. This token is approaching a double-up since being listed last week, with tremendous momentum behind this new listing.
Meme token favorite Dogecoin continues to track market sentiment in the crypto world, and it has generally traded in relatively high correlation with its peers of late. Today’s move appears to be a continuation of this trend.
So what
Overall, investors across most asset classes have found a reason to be bullish today. Risk-on sentiment is pervasive, as investors appear to feel that the expected interest rate hike is already priced in.
Of course, these token-specific catalysts have helped these top-tier tokens continue their higher-volatility moves higher. Investors appear to remain intrigued by new listings, as evidenced by THORChain’s move. Additionally, with Ethereum’s interim status as a proof-of-work token not yet hindering it, investors have a lot to feel bullish about today.
Now what
Whether today’s price action is a reprieve from a longer-term bear market that may continue in the crypto world remains to be seen. The overall crypto market has been in bear market territory for much longer than have various stock indexes, which broke into an official bear market in recent days. Accordingly, these tokens have much further to climb to get to new all-time highs, something bulls expect will be the case over the long term.
That said, anything can happen in the short term. With the crypto sector seeing continued volatility, investors in this space should prepare themselves for a rocky ride. Looking at the CBOE Volatility Index today, uncertainty is building, which is likely to be reflected in some impressive moves in the crypto sector, if this correlation holds true moving forward.
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