Bitcoin (BTC) is pulling back after reaching new highs for the year in wake of Wednesday’s Fed policy announcement near $36,000.
The world’s largest cryptocurrency by market capitalization was last changing hands just under $35,000, nearly 3% below earlier session highs as short-term speculators book profit.
But this is a dip that could well be bought, given positive trends in the broader macro landscape – US stocks are pumping and US government bond yields are dumping on Thursday on bets that the Fed’s tightening cycle has finally ended and easing lays ahead, despite Fed Chair Jerome Powell doing his best on Wednesday to leave the door open to further rate hikes.
Bets for easier monetary policy ahead in the US could encourage investors to pile back into crypto, which typically performs well in times of easing financial conditions.
Macro tailwinds would add to the list of bullish Bitcoin narratives that have supported the price in recent weeks, such as expectations for near-term approval of spot Bitcoin Exchange Traded Funds (ETFs) in the US (which would boost institutional adoption), the 2024 Bitcoin halving and Bitcoin’s increasing appeal as a safe haven asset.
Bitcoin bulls will be eyeing a test of $40,000 in the coming weeks.
Major altcoins are also in a buoyant mood, with the likes of Ether (ETH), XRP (XRP) and Dogecoin (DOGE) all up 1-3% in the past 24 hours, as per CoinGecko, while Cardano (ADA) and Solana are up nearly 7% and 10% over the same time period respectively.
With blue-chip crypto markets pumping, highly illiquid shitcoin/meme coin markets are in a state of frenzy.
Here are some of the top performing low cap shitcoins, as per DEXTools.
PEPE2 ($PEPE2)
A new copycat version of Pepe Coin called PEPE2 ($PEPE2) has seen a large pump since launching on Wednesday, up over 600% in the past 24 hours amid trading volumes of over $1.6 million, as per DEXTools.
The shitcoin last had a market cap of around $450,000, over 500 holders and unlocked liquidity of around $200,000.
The token has undefined risks relating to its smart-contract, as per DEXTools’ security audit, so investors should be cautious.
Wealth ($WEALTH)
A shitcoin called Wealth ($WEALTH) has pumped up more than 550% in the past 24 hours, as per DEXTools.
But bulls should beware that this pump could easily reverse, as its been driven by very shallow trading volumes of only around $80,000 in the past 24 hours.
$WEALTH last had a market cap of around $215,000 and liquidity of just over $80,000, with 507 holders.
As per DEXTools’ security audit, the token has five concerning aspects relating to its smart contract, including a possible pause of transfers.
The SimpSonGoku ($SIMPKU)
A recently launched shitcoin called The SimpSonGoku ($SIMPKU) is still pumping on Thursday and was last up 350% in the past 24 hours amid trading volumes of around $1 million, as per DEXTools.
The shitcoin last had a market cap of just over $500,000, locked liquidity of around $350,000 and just over 250 holders.
As per DEXTools’ security audit, the token has no defined issues with its smart contract, aside from “other risks”, so investors should still be cautious.
Crypto Alternatives to Consider
Shitcoins can offer huge potential returns, but also come with a lot of risk.
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.
These tokens are nearly always sold cheaply, and there is a long history of presales delivering huge exponential gains to early investors.
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.
The team at Cryptonews spends a lot of time combing through presale projects to help investors out.
Here is a list of 15 of what the project deems as the best crypto presales of 2023.
See the 15 Cryptocurrencies
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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