While mainstream cryptocurrency markets struggle amidst of macroeconomic pressures, those with a high-risk tolerance might find interest in the fringe corners of the crypto universe. Blue chip cryptos, notably Bitcoin and Ether, are seeing a minor slump. This downturn is fueled by worries of rising US long-dated yields, a consequence of the expectation that US interest rates will remain high in the wake of the country’s robust economic performance.
The anticipation of comments from Federal Reserve Chair Jerome Powell, regarding future monetary policy, is also driving anxiety in the market. Many observers are looking at potential impacts of speculated delays in rate cuts currently heavily factored into prices. Fluctuations in the market could also be affected by the ongoing lawsuit between crypto investment firm Grayscale and the US Securities and Exchange Commission over the latter’s denial of Grayscale’s spot Bitcoin ETF application last year.
While the major cryptos are developing in this tough environment, some people still see opportunities for extraordinary gains in the less well-known section of the market, routinely enjoying astronomical intra-day gains. Recently, a newly-launched token, Guise, has surged a staggering 33,000% within a day. This high risk asset carries certain warning signs, like a significant buy and sell tax, a mechanism to prevent large volume transactions, and a trading cool down mechanism.
Two other newcomers, Xccelerate and Back to 2017, have also seen significant surges in value. Both of these tokens possess an anti-whale mechanism to prevent substantial transactions, and traders should take caution when considering the risk associated with these cryptos.
Finally, some crypto enthusiasts searching for high stakes, high reward opportunities are examining presales of tokens for emerging crypto projects. Theoretically, these investors could reap profound exponential gains if these projects mature successfully. However, due diligence is still essential in navigating these turbulent and risky waters.
Crypto investments carry inherent risk and it’s crucial to remember that capital can be lost. As always, information provided herein merely provides the market overview. Every investor needs to do a proper research and understand risks before participating in the world of crypto.