Bitcoin (BTC) is currently experiencing consolidation above $35,000 at the start of the week. Traders are taking stock of recent dovish US macro developments, which some believe could fuel the next upward movement in BTC price. These developments include last week’s weak US jobs and manufacturing PMI data, along with Fed Chair Jerome Powell’s unconvincing attempt to convince the market that more rate hikes may be imminent. The impact of these developments has been evident in the strong pump seen in US equity and bond prices, as well as the weakening of the US dollar. These macro trends typically provide strong support for the BTC price.
While profit-taking from the massive October pump seems to be limiting the upside for Bitcoin currently, various major altcoins are performing well. This suggests that sentiment in the broader crypto market remains bullish. For instance, XRP (XRP) has seen a 16% increase in just two days, bringing its price back above $0.70, its highest level since late July. The recent legal loss for the SEC in its case against XRP issuer Ripple Labs has further fueled the optimism surrounding XRP, with the cryptocurrency eyeing a test of annual highs in the $0.90s. Stuart Alderoty, Chief Legal Officer at Ripple Labs, highlights the significance of the legal outcome, stating that the SEC cannot ask for a significant disgorgement award without first proving that “investors” suffered actual financial harm. Other altcoins such as Dogecoin (DOGE), Chainlink (LINK), Avalanche (AVAX), Litecoin (LTC), Shiba Inu (SHIB), and BNB (BNB) are also experiencing positive price movements, each recording gains of 4-5% in the past 24 hours, according to CoinMarketCap.
The Appeal of Low-cap Shitcoins and Emerging Opportunities
While sentiment in the blue-chip crypto markets remains strong, traders seeking quick exponential gains continue to explore opportunities in the highly illiquid shitcoin/meme coin market. Interestingly, there has been a surge in the launch of new shitcoins on the Ethereum blockchain, attracting significant attention. One such example is a shitcoin called IO ($IO), which witnessed a staggering 750% pump in the past 24 hours. The trading volumes during this period reached $11.5 million, signaling substantial market interest. Although the shitcoin has a market cap of approximately $1.8 million and has attracted nearly 1,300 holders, as well as more than $440,000 in locked liquidity, investors must remain cautious when investing in high-risk low-cap shitcoins. Despite the absence of concerning aspects in its token contract and the presence of locked liquidity, it is vital to exercise prudence when dealing with such investments.
Another shitcoin gaining traction is MetaBlox (MBX), a crypto gaming token that has witnessed a pump of around 150% in the past few days and currently boasts trading volumes of over $500,000. With a market cap of approximately $1.07 million, locked liquidity of around $120,000, and close to 600 holders, MetaBlox presents an opportunity for significant gains. However, traders should be mindful of the substantial 5.5% buy and sell tax associated with this shitcoin. Additionally, the DEXTools’ security audit revealed that this tax can be modified, adding an additional layer of risk to the investment. It is crucial for investors to be aware that their investments may become worthless if the issuer decides to raise the sell tax to 100%.
One example of a successful shitcoin is BoxBet (BXBT), a Telegram sports betting token that recently surged to fresh all-time highs, experiencing a 240% increase in the past 24 hours. The shitcoin recorded trading volumes of $317,000 during this period and holds a market cap of roughly $1.2 million. It has garnered close to 500 holders and over $200,000 in locked liquidity. However, BoxBet does come with a 5% buy and sell tax, as well as some concerning aspects in its token contract, such as a modifiable tax, pausable transfers, wallet blacklisting, and more. Investors must conduct thorough research and exercise caution when considering investments in such high-risk tokens.
The Potential of Crypto Presales
For individuals seeking a better probability of near-term gains, another high-risk, high-reward investment strategy to consider is participating in crypto presales. These presales involve purchasing tokens of new crypto projects to help fund their development. These tokens are typically sold at low prices and have a history of delivering exponential gains to early investors. Many of these projects have strong teams and innovative visions for revolutionary crypto applications/platforms. Identifying such projects can provide favorable risk/reward ratios for presale investments. Investors can rely on sources like Cryptonews, which extensively reviews presale projects, to guide them through the process. To gain insights into some of the best crypto presales of 2023, refer to the list provided by Cryptonews.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes only and does not constitute investment advice. Investors should be aware that they could potentially lose all of their capital.
