Post a languid retreat from its one-month high earlier this week, the world’s largest cryptocurrency, Bitcoin, has been maintaining its stance in the mid-$27,000s. Enthusiasts had cited October’s robust history regarding Bitcoin’s gains and liquidated short positions as factors propelling Monday’s surge. However, macroeconomic hindrances dragged the numbers down yet again.
Behind this dramatic rollercoaster rate ride is an unanticipated rise in US yields which occurred as a direct consequence of data reflecting a stronger-than-expected US economic outlook. The US job openings have taken a surprising leap, signalling a potent US labour market, thereby translating into a challenging task for the Fed’s inflation war.
Increased yields on risk-free assets such as US government bonds diminish the allure of riskier counterparts, with Bitcoin being one. As long as the trend of ascending US yields persists, it’s plausible that this may pose a hindrance for Bitcoin’s soaring prices.
Down the week, eyes will be trained on the US ISM Services PMI data and the official US jobs report, alongside the likelihood of more robust data pushing yields even higher. Other anticipated incidents include the verdict from the former FTX CEO Sam Bankman-Fried’s trial, and the lukewarm initiation of the first Ether futures ETFs in the US.
Nevertheless, with both Bitcoin and Ether within recent boundaries, risk-tolerant traders are veering towards the highly illiquid shitcoin/meme coin market for lucrative opportunities. Among these enterprising initiatives, the newly-launched Master Shifu ($SHIFU), the frivolous HairyPlotterFTX ($FTX), and Oozaru Vegeta ($VEGETA) are emerging as vigorous contenders, listing strong trading numbers.
However, exercise caution with these newfound favourites, as potentials of a rug pull loom large with incomes not locked to liquidity.
Another strategy worth considering is getting involved with crypto presales. This risky but potentially rewarding approach entails purchasing tokens from budding crypto projects for their advancement. With an extensive history of presales delivering multi-fold gains, identifying the right venture could turn the tables.
Epilogue: Crypto indeed remains a high-risk asset. Nevertheless, with the proper perusal and strategic planning, it can be a profitable gamble. It’s essential to note this text exists to explore the potential of crypto and should not be misconstrued as investment advice since the risks warrant the potential of complete capital loss.
Source: Cryptonews
