The Bitcoin (BTC) bulls are back in the ascendency, with the world’s first and largest cryptocurrency by market capitalization recently pushing back to the north of the $35,000 once again amid gains of more than 3% in the past 24 hours. Optimism about expected upcoming spot Bitcoin ETF approvals remains a tailwind for the market, but analysts are increasingly pointing at other bullish BTC narratives as driving the price increase.
Narrative Shift: Bitcoin as a Safe Haven
For example, Bitcoin’s strong performance comes despite recent weakness in the US stock market, and the fact that long-term US bond yields remain close to multi-decade peaks – in recent years, Bitcoin had a positive correlation to stocks and negative correlation to yields. That correlation was likely because many market participants had viewed Bitcoin as a speculative, risky investment. But the narrative seems to be shifting toward Bitcoin being more of a safe haven against government and central bank largesse and geopolitical risks. Traders will recall that Bitcoin saw a huge safe haven pump back in March on fears of the US banking system going under and, since then, leaders at major financial institutions like BlackRock’s Larry Fink have been touting Bitcoin as a safe haven asset like gold.
“Bitcoin is here to stay. Investors are increasingly accepting it as a hedge, similar to gold,” Fink said.
With stock and bond prices trending lower but Bitcoin moving higher, more and more macro/traditional investors will start to look at Bitcoin as an uncorrelated but strong-performing asset worth diversifying into. Of course, there are plenty of other exciting narratives to get the Bitcoin bulls fired up, like the halving and the potential start of a Fed easing cycle, which could be viewed as inflationary, thus boosting scarce assets like Bitcoin. It may not be long before Bitcoin surges above $40,000.
Altcoins on the Rise
Elsewhere, other blue-chip altcoins like Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and Tron (TRX) have all pumped between 2-8% in the past 24 hours, as per CoinGecko. Whilst blue-chip crypto markets are performing well, highly illiquid shitcoin/meme coin markets remain the most volatile place in the crypto space. Traders looking for 2-3x gains in a matter of days or hours will continue to flock to these markets.
Here are some of the top-performing low-cap coins, as per DEXTools:
- SamurAI Bot ($SAMBO)
- Obama6900 ($OBX)
A new AI trading bot called SamurAI Bot ($SAMBO) has seen an explosive start to life since launching earlier on Tuesday. The token last had a market cap of around $350,000, up over 140% in the last 24 hours as per DEXTools, with around $130,000 in 24-hour trading volumes, more than 230 holders, and around $70,000 in liquidity.
A shitcoin called Obama6900 ($OBX) has been pumping over the last few days. $OBX was last up more than 110% in the past 24 hours according to DEXTools, making it one of the best performers in the shitcoin market. Its market cap was last around $1.25 million, with 24-hour trading volumes coming in at over $400,000, over 1,100 holders, and locked liquidity of around $115,000.
Shitcoins can offer huge potential returns, but also come with a lot of risk. Those looking for a better probability of near-term gains, an alternative high-risk, high-reward investment strategy to consider is getting involved in crypto presales. This is where investors buy the tokens of upstart crypto projects to help fund their development. These tokens are nearly always sold cheaply, and there is a long history of presales delivering huge exponential gains to early investors. Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform. If an investor can identify such projects, the risk/reward of their presale investment is very good. The team at Cryptonews spends a lot of time combing through presale projects to help investors out. Here is a list of 15 of what the project deems as the best crypto presales of 2023.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
