Preface

The crypto market witnessed a rollercoaster ride with Dogecoin (DOGE) experiencing a notable decline after a brief surge. In contrast, Solana (SOL) and HYPE tokens emerged as leaders in a market rebound. In this article, we explore the trends of major cryptocurrencies following a volatile trading day and the potential implications for the future.

Lazy bag

Dogecoin fell 7.5%, undoing its short-lived pump, while SOL and HYPE led the recovery. Crypto markets brace for potential impacts of upcoming policies.

Main Body

The ever-fluctuating world of cryptocurrency markets saw a remarkable turn of events this week. On Wednesday, Dogecoin (DOGE), which had seen a sharp increase earlier in the week, fell by 7.5% to 36 cents during the European noon hours. This downturn came as investors took profits following Dogecoin's surge from 34 to 38 cents on Tuesday. The surge was initially sparked by the display of Dogecoin’s logo on the Elon Musk-led Department of Government Efficiency's website. Interestingly, the website underwent changes during Asian hours on Wednesday, reverting back to displaying an animated image of a dog before finally showing just its name and a dollar sign later in the afternoon.

Meanwhile, other major tokens displayed mixed movements. Bitcoin (BTC), Ether (ETH), and BNB Chain’s BNB recorded minimal gains, each rising less than 1% over the last 24 hours. In stark contrast, Solana's SOL and XRP surged up to 7%, aiding a partial recovery in the broader market index - the CoinDesk 20 (CD20) index, which rose by 2.57%.

The highlight of the trading session was Hyperliquid’s HYPE token, which outperformed its peers with an impressive gain of 13%. Notably, this surge occurred among large-cap tokens that boast a market capitalization exceeding $5 billion. Amid these fluctuations, market players are closely monitoring Donald Trump's executive orders and tariff decisions, which could serve as vital cues for crypto market positioning.

BTSE COO, Jeff Mei, noted in a Telegram message, “The crypto markets dipped as traders took profits and awaited possible repercussions of tariffs on Mexico and Canada. These tariffs could leave a mark on the financial markets when the US stock exchanges open.” He further added, “We remain optimistic, anticipating that Trump's executive orders might undo several anti-crypto measures implemented by the previous administration. Positive developments like appointing Caroline Pham, considered pro-crypto, as the CFTC Commissioner, signal a favorable shift.”

Echoing this sentiment, Alex Kuptsikevich from FxPro commented in an email to CoinDesk, highlighting the public's high interest in risk assets. “Bitcoin hovered around the $105K mark, rapidly bought during Tuesday's dip to $101K, but seeing brisk sell-offs upon hitting $107K early Wednesday. The market's optimism is apparent, yet an additional catalyst is required to fuel the momentum,” he added.

Key Insights Table