Crypto market wrap: Bitcoin and Ethereum dip 2% while Tron and Dogecoin rise

On September 5, the cryptocurrency market saw a modest decline, with Bitcoin and Ethereum sliding around 2% each. Other major coins like Solana and USDC also took a plunge.

Dogecoin and Toncoin were among the few coins trading in the green on Wednesday.

Meanwhile, Cardano and Litecoin were up 0.84%, and 0.2%, respectively. Avalanche and Shiba Inu were down 1.70% and 0.67%, respectively.

The crypto Fear & Greed index fell to 26 indicating deep “fear” among market participants. The metric gauges market sentiment towards Bitcoin and other major cryptocurrencies, where a value of zero indicates extreme fear and 100 signifies extreme greed.

Bitcoin price at $56,000

Bitcoin (BTC), the leader in market capitalization, was trading at around $56,000 amid global economic uncertainties.

Analysts are closely watching the impact of potential Federal Reserve interest rate hikes and inflation data.

A bearish turn could push Bitcoin down below $50,000, while bullish sentiment, driven by increasing institutional interest in Bitcoin ETFs, may test the $65,000 level.

Source: CoinMarketCap

Ethereum at $2,380

Ethereum (ETH), was trading at around $2,380 at press time. ETH price declined 2% today with a 24-hour trading volume of $12,997,048,319.

Source: CoinMarketCap

This comes as Ethereum grapples with several issues, such as reduced network fees, lackluster staking rewards, and weak demand for its newly launched spot exchange-traded funds (ETFs).

Traders are worried that Ether might lag even if the broader crypto bull market rebounds, due to anticipated declines in fixed-income incentives in the United States.

Tron’s price at $0.1503

The price of TRON (TRX) was at $0.1501 today with a 24-hour trading volume of $310,161,793. This represents a 0.32% price increase in the last 24 hours. 

Crypto analyst Mystery of Crypto believes TRX can maintain its current momentum. In a recent X post, he suggested that a breakout could be achievable if the cryptocurrency’s fundamentals continue to be robust.

Technically, Tron (TRX) also shows bullish signs, trading above both its 100-day exponential and simple moving averages.

If the TRON ecosystem continues to gain traction in 2024, the TRX coin price could potentially reach $0.251.

Conversely, if TRON encounters regulatory challenges and struggles with adoption, the TRX price may fall to $0.080.

Source: CoinMarketCap

Polygon (MATIC) hits $0.369

Trading at around $0.369, MATIC has been gaining traction with its POL 2.0 upgrade. The Ethereum scaling network transitioned from its existing MATIC token to POL, which will become the new native token of the network. This migration is a key component of the Polygon 2.0 roadmap.

Source: CoinMarketCap

POL will take over as the primary gas and staking token for Polygon’s main proof-of-stake chain.

Commenting on the current market scenario, Quinn Thompson, founder of digital asset hedge fund Lekker Capital, wrote in a post :

With recession fears peaking and crypto sentiment at a low, I believe we are nearing a tradable local bottom

Thompson noted that US-listed Bitcoin ETFs experienced their largest daily outflow since May 1 on Tuesday, which coincided with a local bottom for Bitcoin’s price at $56,500. Following this, Bitcoin rebounded 27% within three weeks to reach $72,000.

The metric measures market sentiment towards Bitcoin and other major cryptocurrencies, where a value of zero represents extreme fear and 100 indicates extreme greed.

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