What happened
It's party on in the crypto world today. Investors in most digital currencies are seeing tremendous interest resume, following a rather bearish week last week among most major cryptocurrencies.
As of 10 a.m. ET, Bitcoin (BTC 1.30%), Ethereum (ETH 2.65%), and Dogecoin (DOGE 0.74%) surged 2.3%, 8.5%, and 3%, respectively. These gains today have wiped out most of the losses seen in the crypto segment from last Friday's omicron-driven decline.
Image source: Getty Images.
So what
Much has been made of the move in Bitcoin to bear market territory, following Friday's variant-driven decline. Of course, as the largest cryptocurrency in the world, when Bitcoin sneezes, other digital assets tend to catch a cold.
Such appears to have been the case with Bitcoin's directional move in recent days driving momentum across the crypto sector. Ethereum and Dogecoin have both traded in relatively strong correlation to Bitcoin, both on the plunge late last week and on this week's recovery.
Investors appear to be rotating back into riskier assets, as the true impacts of this variant are brushed off by the market. Whether or not this perspective turns out to be correct will be proven with time. However, bullish sentiment among growth investors appears to be winning out today.
Now what
Of the larger-cap cryptocurrencies, Ethereum continues to pave the way in terms of price performance. Today's rise of more than 8% brings Ethereum to within spitting distance of its all-time high. Currently, this smart-contract-enabled ecosystem is within 4% of making new highs.
Bitcoin has stumbled to a greater degree and has more work to do to make up previous losses. As mentioned, this token was in bear market territory just a few days ago. However, Bitcoin appears to be moving in the right direction once again.
For Dogecoin, it appears meme token sentiment has officially shifted away from DOGE and into other speculative dog-themed tokens -- namely, Shiba Inu. Today, Shiba Inu has risen more than 30%, eclipsing Dogecoin's performance and suggesting a new sheriff is in town in the meme token space. Dogecoin remains approximately 70% off its all-time highs, following today's rally.
