Crypto markets are currently facing selling pressure as traders take profits after significant gains in recent weeks. Bitcoin (BTC) has dropped over 3% today, reaching the low $35,000s and testing its 21DMA. Similarly, Ether (ETH) has also fallen by a similar margin and is now below the $2,000 level.
The latest US Core Inflation figures, released on Tuesday, turned out to be weaker than expected. This has led to an increase in US stock and bond prices, while the US Dollar Index (DXY) has declined. Traders are now speculating that the Federal Reserve will begin reducing interest rates in mid-2024. With the presence of favorable macro tailwinds and the anticipation of near-term spot Bitcoin ETF approvals, crypto bulls continue to look for opportunities to buy any market dips, and the current dip could be seen as one such opportunity.
Looking ahead, the release of US Retail Sales data later this week, if softer than anticipated, could further drive up US stocks and bonds and contribute to a decline in the US dollar. This would provide additional macro tailwinds for the crypto space. Although a pullback is overdue given the recent market surge, traders should expect that dips will be bought into, and the market will maintain its bullish momentum in the near term.
Low-Cap Crypto Gainers
While blue-chip cryptocurrencies offer a good medium-term trading strategy for dip buying, investors with a high-risk tolerance who seek quick exponential profits are drawn to the highly illiquid and volatile low-cap “shitcoin” or meme coin markets. Here are some of the notable low-cap crypto gainers:
- Grok 2.0 ($GROK) – “A copycat 2.0 version of the original Elon Musk AI-project-inspired Grok coin”, Grok 2.0 has seen a massive pump on Tuesday, with an increase of over 2,000%. According to DEXTools, it has trading volumes exceeding $600,000, a market cap of over $2 million, liquidity of approximately $170,000, and nearly 300 holders. Investors should be cautious as the token’s smart contract has three concerning aspects.
- MUBI – Another “shitcoin” released on Tuesday, MUBI has experienced a pump of around 1,300% and has traded massive volumes exceeding $12 million. Its market cap currently stands at approximately $5.7 million, with liquidity of over $400,000 and close to 2,000 holders. While the token only has two smart-contract alerts, it has garnered a 74% downvote rating, indicating a lack of trust within the community.
- Web ($WEB) – Claiming to be a competitor to Google, this “shitcoin” has gained around 110% in the past 24 hours, with 24-hour trading volumes reaching roughly $17 million. With a market cap of approximately $3.3 million, liquidity slightly exceeding $300,000, and around 2,700 holders, investors should exercise caution due to the five smart-contract alerts associated with the token.
It is important to note that while these “shitcoins” may offer the potential for significant returns, they also come with inherent risks. Investors seeking a higher probability of short-term gains may consider exploring participation in crypto presales. This investment strategy involves purchasing tokens of emerging crypto projects to contribute to their development. Typically, these tokens are sold at low prices, and historical data shows that presales have delivered substantial exponential gains to early investors. Many of these projects have exceptional teams and innovative visions for delivering revolutionary crypto applications or platforms. Identifying such projects can present favorable risk/reward ratios for presale investments. The Cryptonews team actively researches and evaluates presale projects to assist investors. Below is a list of the 15 best crypto presales of 2023 as compiled by the project.
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