In the midst of weaker-than-anticipated US survey data, leading cryptocurrency prices have been appreciating. BTC is holding its footing in the $26,300 range and ETH is in the high $1,600s, marking a gain of around 2% in the past 24 hours. These movements come as a flash US PMI Survey signaled stagnation in the dominant US service sector, leading to concerns that the strength of the US economy, recently indicated by various data, could be misleading.
This interpretation has seemingly placated the fear of further interest rate hike by the US Federal Reserve this year. Apparently, the prospects of lowering interest rate bets have traditionally seen an optimistic performance of cryptocurrency prices.
Less sanguinity rests on the potential effect of the impending remarks of Fed Chair. It’s expected that he will maintain the possibility of future interest hikes while resisting the notion of premature rate cuts, considering that the inflation struggle in the US is still far from over. Should markets interpret this message in an aggressive light, the US dollar and yields could witness an uptick, driving the top tier cryptos down.
While it’s most likely that major cryptocurrencies won’t witness substantial highs in the short term, traders seeking quick gains could turn to the extremely volatile meme coin markets where stellar daily gains or drastic one-day losses are not unusual. As a case in point, one can reference to the remarkable performance of $SP500, a token that saw a 160% rise in the past 24 hours. On the other hand, the Salt Token and the meme coin XDoge have also presented impressive profits.
Amid this unpredictability, alternatives such as crypto presale investments may appeal to those investors thirsty for high risks and rewards. By purchasing tokens of burgeoning crypto projects to fund their development, investors have a chance to make significant gains. However, the high-risk nature of these investments cannot be understated.
Cryptocurrency trading remains a high-risk pursuit, but with cautious approach and a keen eye on market trends, one can potentially enjoy substantial returns. As always, one should practice extreme caution and conduct thorough due diligence before leapfrogging into the volatile waters of digital asset trading. Remember, invest only what you can afford to lose.
Source: Cryptonews
