As we kick off a short week, investors in a range of speculative assets are seeing selling pressure build. Of course, there are plenty of macro reasons for this trepidation. Some rather important inflation readings are due later this week, which could impact everything from growth stocks to commodities to cryptocurrencies. Everything is tied to interest rates these days.

In the crypto world, Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE) are among the megacap tokens seeing declines today. Over the past 24 hours, these three top tokens have slumped 3.8%, 3.5%, and 4%, respectively, as of 2:30 p.m. ET.

Let's dive into what's driving today's price action in these top tokens.

Enthusiasm over key catalysts wears off

Investors in these three megacap tokens have certainly had quite the run over the past few weeks, and really since the beginning of the year. Bitcoin started the party off with the approval of a dozen spot exchange-traded fund (ETF) products, which conjured up some significant demand for its token. In combination with a halving event, which saw the amount of newly minted Bitcoin slashed in half, this created a supply-and-demand dynamic investors liked.

Ethereum recently saw similar catalysts take hold, with the Securities and Exchange Commission (SEC) approving spot Ethereum ETFs last week as well. Additionally, previous upgrades have resulted in Ethereum becoming less inflationary, and depending on the day, deflationary based on token burn metrics relative to transaction volumes.

As a more speculative asset, Dogecoin has ridden market momentum higher. But with these catalysts now seemingly in the rearview mirror (it's really amazing how quickly the market adjusts to news, particularly in this space), some investors may be looking to sell into this news and wait patiently for another catalyst to take hold. A similar "sell the news" effect took place immediately following the anticipated approval of spot Bitcoin ETFs earlier this year.

Until the next catalyst takes hold, investors appear to be on pause for the next reason to bet big on this sector (and these three tokens by default).

A pause in the rally, or a reversal?

Now, the question is whether this recent dip is a sign of more downside to come, or if it's simply a consolidation period before the next move higher. Earlier this month, a speculative wave hit the crypto sector, driving everything from meme tokens like Dogecoin to large-cap cryptos like Bitcoin and Ethereum higher. But since then, it appears the broader crypto market is awaiting the next catalyst on the horizon.

There is certainly a tremendous amount of innovation and technological movement happening underneath the surface in the crypto realm. I wouldn't be surprised to see headlines pop up for any of these three tokens that have the ability to move the market higher, with all three benefiting from positive news. I just don't know what the catalyst will be, or when positive momentum can be expected to build again. For now, I'm happily watching this price action from the sidelines.

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Chris MacDonald has positions in Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

Why Bitcoin, Ethereum, and Dogecoin Are Taking a Breather Today was originally published by The Motley Fool