Blue-chip cryptocurrencies face profit-taking ahead of the end of the year

Market Correction and Holiday Season

Blue-chip cryptocurrencies continue to pull lower from multi-month/year highs hit earlier in the month amid profit-taking ahead of what is expected to be a somewhat calmer and lower volume run in to the end of the year, as major market participants take time off for the Christmas holidays.

Price Movements of Major Cryptocurrencies

Bitcoin was last trading around $41,500, down 1.3% in the past 24 hours as per CoinMarketCap, whilst Ether was last down around 3.0% in the mid-$2,100s. Most major altcoins are also lower, with the likes of BNB (BNB), XRP (XRP), Solana (SOL), Cardano (ADA), Avalanche (AVAX) and Dogecoin (DOGE) all down between 2-6% over the same time period.

“Optimism about near-term expected spot Bitcoin ETF approvals remains a reason for dip-buyers to want to continue entering the market. But price risks remain tilted to the downside this week for major cryptos, with Bitcoin having recently dropped below a short-term uptrend and its 21DMA, a technical sign a short-term dip back to $38,000 could be on the cards.” – CoinMarketCap

Recent Developments in the Crypto Space

• The recent Ledger vulnerability sparked renewed concerns about wallet safety in DeFi.
• A spike in layer-1 blockchain transaction fees amid renewed meme coin mania sparked fresh concerns about scalability.
• Hawkish commentary from a Fed official at the end of last week muddied the waters regarding when the Fed will start cutting interest rates in 2024.

These developments have been generating discussions in the crypto space and impacting market sentiments.

Low-cap Market Performances on Uniswap

• Layer-2 scaling solution Metis’ native token $METIS has enjoyed a 13% pump in the past 24 hours, making it one of the best-performing low-cap coins.
• Finance-focused layer-1 blockchain Injective’s native token $INJ is up around 10% on Monday.
• Decentralized spot, derivatives, and claims exchange the Open Exchange’s native token $OX is up an impressive 9% in the last 24 hours.

These low-cap coins have shown potential for significant returns, but they also come with a lot of risk.

Investment Strategy: Crypto Presales

For 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. 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.

“Low-cap coins can offer huge potential returns but also come with a lot of risk. For 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.” – Cryptonews