Crypto markets are succumbing to sell pressure on Tuesday as traders take profit in wake of strong gains nearly across the board in recent weeks.
Bitcoin (BTC) was last down over 3% on the day in the low $35,000s and probing its 21DMA, whilst Ether (ETH) was down a similar margin and back below the $2,000 level.
But the latest US Core Inflation figures came in weaker than expected on Tuesday.
This has spurred substantial upside in US stock and bond prices and downside in the US Dollar Index (DXY) as traders amp up bets that the Fed will start cutting interest rates in mid-2024.
As a result, growing macro tailwinds plus optimism for near-term spot Bitcoin ETF approvals that remains palpable, crypto bulls remain very much on the lookout for dip-buying opportunities, and the present market dip may well qualify as such.
Looking ahead, the release of US Retail Sales data later in the week, if also softer-than-forecast, could spur further upside in US stocks and bonds and further downside in the US dollar, adding further macro tailwinds to the crypto space.
While a pullback is certainly overdue in wake of the pump of recent weeks, traders should expect dips to continue being bought into and the market to retain its near-term bullish momentum.
Whilst blue-chip crypto dip buying will probably remain a good medium-term trading strategy, investors with a high-risk tolerance who want to turn quick exponential profits will continue to be attracted to the highly illiquid and volatile shitcoin/meme coin markets.
Here are some of the biggest low-cap crypto gainers, as per DEXTools.
Grok 2.0 ($GROK2.0)
A copycat 2.0 version of the original Elon Musk AI-project-inspired Grok coin, Grok 2.0 ($GROK), is enjoying a massive pump on Tuesday and was last up over 2,000% as per DEXTools, amid trading volumes of over $600,000.
The token now has a market cap of over $2 million, around $170,000 in liquidity and close to 300 holders.
As per DEXTools’ security audit, the token has three concerning aspects to its smart contract, so investors should be sure to do their due diligence.
Another shitcoin that was also released earlier on Tuesday called MUBI is also pumping, up around 1,300% as per DEXTools amid massive trading volumes of more than $12 million.
The token’s market cap was last around $5.7 million, with over $400,000 in liquidity and close to 2,000 holders.
While the token has only two smart-contract alerts according to DEXTools’ security audit, it has a 74% downvote rating, suggesting the community doesn’t trust the token.
A shitcoin called Web ($WEB) that claims to be a competitor to Google is up around 110% in the past 24 hours, as per DEXTools amid around $17 million in 24-hour trading volumes.
The shitcoin last had a market cap of around $3.3 million, just over $300,000 in liquidity and around 2,700 holders.
Investors should be cautious of the token given its five smart-contract alerts as per DEXTools’ security audit.
Crypto Alternatives to Consider
Shitcoins can offer huge potential returns but also come with a lot of risk.
Those looking for a better probability of near-term gains, an alternative high-risk, high-reward investment strategy to consider is getting involved in crypto presales.
This is where investors buy the tokens of upstart crypto projects to help fund their development.
These tokens are nearly always sold cheaply, and there is a long history of presales delivering huge exponential gains to early investors.
Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform.
If an investor can identify such projects, the risk/reward of their presale investment is very good.
The team at Cryptonews spends a lot of time combing through presale projects to help investors out.
Here is a list of 15 of what the project deems as the best crypto presales of 2023.
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