Dogecoin Rises Even As Bitcoin, Ethereum Tumble: Analyst Predicts Start Of Full-Blown Alt Season

Major coins traded in the mixed on Monday evening as the uncertainty surrounding the regulatory landscape continued to grip the cryptocurrency market. 

What Happened: Bitcoin is still up 80% from where it stood at the beginning of 2023. This surge follows a tumultuous year, which saw numerous prominent companies go bankrupt, causing risk-averse investors to turn away from cryptocurrency markets. 

Dogecoin rose by 1%, holding its ground in green amid the red zone of several other cryptocurrencies. The Dogecoin community is buzzing with excitement as the highly anticipated SpaceX “Starship” prepares for its grand launch.

At the time of writing, the global crypto market capitalization stood at $1.25 trillion, down over 1.51% over the last day.  

U.S. stocks saw a positive start to the week as traders scrutinized the newest set of corporate earnings reports, seeking vital insights on the overall state of corporate America. The S&P 500 registered a rise of 0.33%, accompanied by a 0.28% increase in the Nasdaq Composite.

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News Highlights: Bittrex, the Seattle-based cryptocurrency exchange, has responded to a lawsuit filed by the Securities and Exchange Commission, or SEC, that accuses the exchange of operating as an unregistered securities exchange, broker and clearing agency. 

Analyst Notes: Edward Moya, senior market analyst at OANDA, said, "Cryptos are losing some appeal as banking turmoil risks appear to be disappearing. Fed lending to banks continues to ease and earnings has not revealed any major strains with the early banks that have reported. Also dampening the appeal for crypto is the surge behind Treasury yields, which is dampening the appeal for most risky assets. It looks like ‘one and done' calls for the Fed were a bit too optimistic and the risks of the Fed over tightening will remain on the table". 

Moya added, "Bitcoin looks like it might be consolidating here, possibly settling on a new range between the $26,500 and $31,000 region.”

According to crypto analyst Michael Van de Poppe, Ethereum’s recent Shanghai upgrade that enables stakers to withdraw their coins may indicate the commencement of a new alt season.

"If we're looking at the Bitcoin dominance, we can arguably say that we have been reaching the crucial level at 50 (percent)…I was thinking maybe we can go a little bit higher but then I realized that Shanghai upgrade took place, which I didn't include in the previous update. I think that we're on the edge of having a correction on the Bitcoin dominance. I think that we're peaking here, and that is going to result into a fall in the coming period. As the last time during the Ethereum merge, it was bottom. Now, it's probably the peak." 

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