Cryptocurrency markets felt a slight chill on Thursday, as prominent virtual currencies Bitcoin (BTC) and Ether (ETH) slipped into a downslide, dipping over 2% and 2.5% respectively. In a surprising turn, news of defunct cryptocurrency exchange MtGox pushing back repayments until 2024 failed to embolden the market sentiment, likely shackled by the ripple effects of the recent Federal Reserve gathering.
The US central bank not only held interest rates steady but hinted at further rate hikes through 2023, while suggesting fewer cuts in 2024. Coupled with a positive economic outlook, these developments prompted the US Dollar Index (DXY) to scale fresh six-month highs, pushing the US 2-year government bond yield to a staggering 22-year high.
Effectively, higher yields on US debt and a sturdier dollar can dwindle crypto asset value by heightening the appeal of risk-free options and making dollar-denominated cryptocurrencies more expensive for non-US currency holders.
Despite these setbacks, heavyweights like Bitcoin and Ether stay comfortably tucked within recent ranges, stirring crypto enthusiasts to turn their gaze to less-heralded shitcoin and meme coin sectors in a quest for near-term returns.
One such emerging player is a fledgling shitcoin christened GOLD ($GOLD), that has seen its popularity skyrocket since its Wednesday launch. In 24 hours, $GOLD’s value has mushroomed by nearly 26,000%, but with $225,000 in unlocked liquidity, the rug pull potential hangs over it like a Damocles sword.
Similarly, Green Bomberman ($BOMBER) has exploded on to the scene less than a day post-launch, touting an impressive surge of over 800%, while Membot ($MEMBOT) turned heads with a 100% price boost, albeit driven by a meagre $18,500 in trading volumes, casting doubt on the sustainability of this upshot.
However, it’s imperative to underscore that such investment avenues, despite their allure, carry tremendous risk due to lack of tangible value proposition. A feasible alternative route could be crypto presales – a bold investment strategy where investors invest in tokens of budding crypto projects to bankroll their progress. While cheap and dripping with potential for exponential gains, it’s indispensable to gauge the vision and vitality of the projects to maximize return on presale investments.
Notwithstanding the turbulence, cryptocurrency remains a thrilling frontier for the eager investor. However, one must tread with caution in these unpredictable terrains. Risk and reward walk hand in hand in this volatile landscape, making it an endeavor for the brave and discerning investor. Your fortune may indeed prosper or dwindle to naught on the whims of this capricious market.
Source: Cryptonews
