Major blue-chip crypto markets are exhibiting a mixed performance on Monday. Bitcoin (BTC) has dipped back into the mid-$36,000s, while Ether (ETH) is challenging the $2,100 level once again. Other major altcoins are also pulling back as investors anticipate the release of key US inflation and retail sales figures later this week. The outcome of this data will shape market expectations regarding the US Federal Reserve’s future tightening measures.
US Data and its Impact on the Crypto Market
The upcoming US data releases are crucial as they will influence market sentiments towards potential interest rate hikes by the Federal Reserve. Traditional markets have been betting that the Fed’s tightening cycle is over, which has led to significant increases in US stock and bond prices in November. However, Fed officials have maintained a hawkish stance, signaling the possibility of further interest rate hikes.
If this week’s US data aligns with the Fed’s narrative of higher interest rates, it could negatively impact US stocks and bond prices, creating macro headwinds for the crypto market. Nevertheless, investors are expected to continue buying the dip, driven by growing optimism for near-term spot Bitcoin and Ethereum ETFs.
“Optimism has driven huge institutional inflows into the crypto space over the last three weeks, with regulated crypto investment products attracting around $300 million in capital inflows per week over the past three weeks.” – CoinShares
The Grayscale Bitcoin Trust’s discount to the spot value of its Bitcoin holdings has also narrowed, indicating the prevailing optimism. As reported by YCharts, the discount recently hit its lowest level in over two years at 10%. This suggests that investors believe Grayscale will successfully convert its Bitcoin Trust to an ETF in the near future.
Promising Cryptocurrencies on November 13th
Despite the mixed performance in the market on Monday, there are several cryptocurrencies that show potential for growth:
- Celestia: A new modular blockchain token that has been experiencing significant price increases over the past four days. It reached a new all-time high near $6 per token, with a market cap of around $700 million.
- Bitcoin ETF Token: Despite being in its pre-sale phase, this token has already attracted over $500,000 from investors. Its audacious pitch into the lucrative Bitcoin ETF theme has contributed to its appeal, along with its DeFi attributes. Investors can participate in the pre-sale and stake their tokens to earn an impressive annual percentage yield of 487%.
- KLAY: The native token of the layer-1 proof-of-stake Klaytn blockchain has also seen price surges in the past two days. It was up by as much as 17.5% on Monday, following its rise above the 200-day moving average (200DMA) on Sunday.
- Filecoin (FIL): This cryptocurrency, which powers Filecoin’s decentralized storage network, continues to experience significant gains. Trading around $5.30s, it has surged a remarkable 70% since October’s lows. The bulls remain in control after Filecoin convincingly broke above its 200DMA earlier this month.
Despite the market’s mixed performance, these cryptocurrencies present investment opportunities on November 13th.
