The cryptocurrency industry witnessed a significant shake-up last Friday. Major cryptocurrencies including Bitcoin (BTC) and Ether (ETH) fell by around 8% and 5% respectively, marking losses of over 11% and 9% for the week, one of the worst weeks this year. This substantial dip in the values of BTC and ETH took the broader cryptocurrency market’s total capitalization down by approximately $110 billion, barely preserving it above the $1 trillion mark.
Several factors appear to be responsible for the downturn, driven by macroeconomic and liquidity conditions along with a shift in market sentiment. The bond yields are near multi-year highs due to a resilient US economy, while US stocks, which have showcased a sturdy correlation with cryptocurrencies in recent years, have been retracting. Reduced August liquidity conditions, hinting at a volatility surge in the financial market, have also influenced the situation.
Further seeping into the sentiment is the news that, despite Bitcoin and Ether breaking below significant support levels, the SEC’s inclination towards endorsing multiple new Ethereum Futures ETFs couldn’t improve the mood.
Yet the gloom surrounding major cryptocurrencies opened up opportunities elsewhere in the market. Investors seeking better near-term gains are turning their focus towards the shitcoin/meme coin markets, with tokens such as Tele (TELE), Shib Bonk (SBONK), and XRP HarryPotterObamaPacMan9Inu (XRP) showing commendable performance.
Tele, the token supporting a web3 protocol enabling users to transact crypto through their phone numbers, saw an enormous 24,000% rise in just 24 hours. Similarly, Shib Bonk, an emerging meme coin, and XRP HarryPotterObamaPacMan9Inu, a recently launched shitcoin, reported significant increases and new all-time highs.
Amid the burgeoning unpredictability and varying risk profiles of the shitcoin/meme coin market, other alternatives are cropping up, like crypto presales. Presales provide opportunities for investors to buy tokens cheaply from developing crypto projects, often delivering exponential gains. Despite carrying high risks, identifying promising projects can become a rewarding investment strategy.
Ultimately, while the falling values of major cryptocurrencies like Bitcoin and Ether induce a wave of skepticism, they also steer market players towards alternative prospects. Even though the headwinds of the macroeconomic climate and uncertain liquidity conditions may persist, the dynamic nature of cryptocurrency markets continues to proffer a variety of strategies for the committed investor.
Source: Cryptonews
