Bitcoin Dips Below $26,000 Amidst Lack of Catalysts
Bitcoin (BTC) briefly fell below $26,000 on Monday, despite a lack of significant catalysts for the drop. Although it has since recovered to the $26,200s, it remains below its 21-day moving average (21DMA), which is just under $26,300. The world’s largest cryptocurrency is on track to end Q3 with a 15% loss due to rising US government bond yields. Higher yields on risk-free assets reduce the appeal of non-yielding and riskier assets like Bitcoin. Ether (ETH) is also trading below its 21DMA, reflecting the overall bearish sentiment in the market.
US Core PCE Inflation Data to Watch This Week
This week, traders should keep an eye on the US Core PCE Inflation data release on Friday as it is the Federal Reserve’s preferred measure of inflation. Until then, the crypto market is expected to remain relatively quiet with major cryptocurrencies staying within recent ranges. Consequently, traders may turn their attention to low-cap “shitcoin” or meme coin markets in search of short-term gains.
Top-Performing Low-Cap Coins
Here are some of the best-performing low-cap coins according to DEXTools:
GeneraitivAI ($GIA)
GeneraitivAI ($GAI) is a community-driven AI platform that rewards contributors for their efforts. It has experienced significant price surges since Sunday and is up nearly 100% in the last 24 hours. With a market cap over $2.5 million and locked liquidity exceeding $530,000, it may soon reach its previous all-time highs in February.
ZkTsunami ($:ZKT)
ZkTsunami ($:ZKT) is a platform that offers transactional anonymity through ZK-AnonSNARK technology. It has surged 50% on Monday and currently has a market cap close to $2.0 million, locked liquidity of $240,000, and approximately 2,600 holders.
Prophet ($PROPHET)
Prophet ($PROPHET) is a new “shitcoin” that has gained nearly 50% in value on Monday. It currently has a market cap close to $2 million, locked liquidity just under $200,000, and around 1,200 holders.
Consider Crypto Presales for Higher Risk-Reward
While shitcoins can be highly risky with little value proposition, another high-risk-high-reward investment strategy to consider is participating in crypto presales. These presales involve buying tokens of up-and-coming crypto projects to support their development. Presale tokens are usually sold at low prices and have a history of delivering substantial gains to early investors. Many of these projects have strong teams and innovative visions. Identifying promising presale projects can offer attractive risk/reward ratios for investors.
Hot Take: Evaluating the Risks and Rewards
Investing in cryptocurrencies involves careful evaluation of risks and rewards. While Bitcoin faces challenges amidst rising US government bond yields, alternative low-cap coins like GeneraitivAI ($GIA), ZkTsunami ($:ZKT), and Prophet ($PROPHET) have shown impressive gains. However, it’s important to exercise caution when investing in these coins due to concerning aspects in their token contracts. Additionally, considering participation in crypto presales can offer another avenue for potential gains but requires thorough research and due diligence. Ultimately, understanding the risks and rewards is crucial for successful cryptocurrency investments.
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