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Three of the most closely watched cryptocurrencies are once again moving lower in today's session despite broader moves higher in many stock indexes today. A range of headwinds has begun to build for top cryptos, with Bitcoin (CRYPTO: BTC) , Ethereum (CRYPTO: ETH) , and Dogecoin (CRYPTO: DOGE) sinking 1.8%, 2.6%, and 4.4%, respectively, over the past 24 hours as of 1 p.m. ET.

These moves coincide with a rather red liquidations heat map, painting a somewhat negative picture for traders who have moved into top cryptos in a leveraged way. Crypto is an asset class typically traded with leverage (and is more susceptible to wild, hype-driven swings). Accordingly, investors are clearly showing concern around heightened volatility in other areas of the market, with stocks seeing very high volatility (reflected in the CBOE Volatility Index , or VIX) that hasn't been seen in a very long time. Pricing this volatility into risk assets is becoming increasingly important for many investors in different asset classes.

Let's dive into what we can make out of today's move in these top tokens.

Lack of catalysts leading to a consolidation phase

There's been plenty of commentary this year among crypto investors regarding the next big catalysts for the sector. Bitcoin's halving and the ultimate approval of spot Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) were the key tailwinds that propelled the world's largest crypto by market capitalization to a new high earlier this year.

Recent upgrades from Ethereum and the SEC approval of spot Ethereum ETFs were bound to send this top crypto higher. And Dogecoin's ability to carve out significant market share among a plethora of other meme coins that have surfaced is a key factor many continue to believe should drive greater gains during future rallies.

The thing is, these key catalysts are largely in the rearview mirror for these top cryptos, given the pace of innovation in the crypto space.

Now, there are some positive catalysts investors are looking at when it comes to these top tokens. From a supply-and-demand perspective, the impact of Bitcoin's recent halving and the surging demand for both Bitcoin and Ethereum as a result of recent spot ETF approvals are positive. Then there's recent data around plunging Ethereum gas fees, which have historically led to a surge in usage across this network.

It's still generally a Bitcoin- and Ethereum-led market, so Dogecoin should be able to ride any positive tailwinds higher. With the macro environment set to seemingly become friendlier to investors and rate cuts on the horizon, there are some catalysts investors can look forward to.

The verdict

Overall, I think crypto investors are simply taking a breather right now. There's clearly plenty of uncertainty built up in the crypto world, with the upcoming election (and varying stances from both administrations on this asset class) in the back of investors' minds.

It's unclear to me just how much capital could continue to flow into digital assets despite the key benefit these spot ETFs provide to institutional money managers. For now, I think the crypto market's recent moves reflect a broader shift toward a more defensive posture, which isn't a bad thing.

That's not to say catalysts can't and won't pop up in the coming months. The crypto sector is one that's proven to be very lucrative during bull market rallies. Right now, many in the market appear to want to time the next surge, and there's little reason to believe such a rally is underway just yet.

Before you buy stock in Bitcoin, consider this: