The world of cryptocurrencies has been experiencing divergent trends recently with big names such as Bitcoin (BTC) and Ether (ETH) showing mixed responses to external factors. Bitcoin has seen some stagnation just above the $27,500 mark, while ETH took a slight dip falling under $1,650. Extraneous influences of US economic performance and labor market data have sparked a considerable increase in long-dated US yields, dampening some of the momentum Bitcoin had gathered at the beginning of the month.
Despite these dynamics, Bitcoin stands positive for the month. A closer look at the latest US job data by payroll firm ADP revealed a slight dampening in monthly private sector job gains, casting some shadows over the health of the US labor market. However, if the forthcoming jobs report substantiates this, we might see a surge in Bitcoin value as yields are likely to take a reverse turn.
So as things cool down in the broader crypto market, attention is turning towards low-cap coins, often referred to as the shitcoin/meme coin market, currently offering a more volatile scene and opportunities for short-term gains. Based on insights from DEXTools, one standout development is a new Dogecoin spinoff called Big DOGE ($BDOGE) that showed a promising start, posting a 400% rise in the last 24 hours. But, the unlocked liquidity and the 90% drop from previous session highs raises eyebrows.
Another coin to note is BoltBot ($BOLT), a trade bot’s native token, displaying an impressive 120% gain. However, this is based on relatively low trading volumes suggesting that the rally might not hold its weight. The addition of a 5% buy-and-sell tax and an anti-whale mechanism, have instilled caution amongst investors.
Crypto games also bring us Gold Fever ($NGL), which has rebounded by 75% after hitting record lows, still well off its prior highs. Spare a thought for the risk nature of such investments. Crypto tokens like these often lack a tangible value proposition, which not only makes them an extreme gamble but can also lead to substantial losses.
A potentially less-risky high-reward strategy might be to consider crypto presales, where investors have the opportunity to purchase tokens of budding crypto projects at discounted prices. Projects with solid teams and game-changing visions increase the odds of a rewarding investment. However, the risk is not to be undermined. In this high-risk asset class, potential for returns and a complete loss of capital cohabitate in a delicate balance.
Source: Cryptonews
