Major blue-chip crypto markets are experiencing mixed performance on Monday. Bitcoin (BTC) has dipped back into the mid-$36,000s while Ether (ETH) is once again challenging the $2,100 level. Other major altcoins are also pulling back ahead of the release of key US inflation and retail sales figures later in the week. The market is eagerly awaiting the data as it will have a significant impact on expectations for future actions by the US Federal Reserve.
Traditional markets have been betting that the Fed’s tightening cycle is over, with US stock and bond prices rising significantly in November. However, Fed officials have remained hawkish and have emphasized that additional rate hikes are still on the table. If this week’s US data confirms the risks of higher interest rates, it could lead to a decline in US stocks and bond prices, which would have a negative effect on the crypto market.
Despite potential headwinds, investors are likely to continue buying the dip due to growing optimism for near-term spot Bitcoin and Ethereum ETFs. Institutional inflows into the crypto space have been substantial over the past three weeks, with regulated crypto investment products attracting around $300 million in capital inflows per week, according to CoinShares.
“The continued narrowing of the Grayscale Bitcoin Trust’s discount to the spot value of its Bitcoin holdings demonstrates the palpable optimism in the market. Investors are betting that Grayscale will be able to convert its Bitcoin Trust to an ETF in the near future,”
– YCharts
Despite the mixed performance of major blue-chip crypto markets, investors seeking quick exponential profits are turning to the highly illiquid and volatile shitcoin/meme coin markets. Some of the biggest gainers on Monday, as reported by Uniswap, include:
- CyberTruck ($TRUCK): This shitcoin launched last week and has spiked nearly 500% on Monday, reaching a market cap close to $5.5 million. It currently has around 1,800 holders, $300,000 in liquidity, and has seen a significant $8.8 million in 24-hour trading volumes. However, investors should exercise caution as the token has four smart contract alerts, as per the DEXTools security audit.
- PromptIDE ($PROMPTIDE): Another shitcoin that has surged over 500% in the past 24 hours. It currently has a market cap of around $2.26 million, close to 2,000 holders, around $250,000 in liquidity, and impressive 24-hour trading volumes of approximately $4.36 million. The DEXTools security audit has identified five concerning aspects of the token’s smart contract, so investors should conduct thorough due diligence.
- Grok ($GROK): An Elon Musk-themed shitcoin that has seen a 20% increase in the last 24 hours, despite rumors on Twitter about its creator potentially being a scam artist. The token currently has a market cap of around $90 million, with trading volumes of nearly $65 million in 24 hours. It has close to 12,000 holders and liquidity of approximately $1.67 million. Although the DEXTools security audit reveals only two concerning aspects to its smart contract, potential investors should be cautious due to the scammer allegations against its creator.
While shitcoins offer the potential for significant returns, they also come with high risks. For those looking for a better chance of near-term gains, another high-risk, high-reward investment strategy to consider is getting involved in crypto presales. In crypto presales, investors purchase tokens of upstart crypto projects to support their development. These tokens are typically sold at low prices, and past presales have delivered exponential gains to early investors.
It is important to be aware that investing in crypto is a high-risk asset class. This article is provided for informational purposes only and does not constitute investment advice. Investors should carefully consider the potential risks and conduct thorough research before making any investment decisions.
