Bitcoin (BTC) has been consolidating in the mid-$27,000s after reversing lower from its one-month highs of $28,600. The initial rally was fueled by optimism about Bitcoin’s historical performance in October and short position liquidations. However, macro headwinds, particularly rising US yields, caused prices to decline again.
The spike in US yields, especially at the long end of the duration curve, is a result of stronger-than-expected US economic data. An unexpected jump in US job openings indicated continued strength in the labor market, making the Federal Reserve’s inflation fight more challenging. Additionally, the ISM Manufacturing PMI data was stronger than expected.
The increase in yields on risk-free assets like US government bonds reduces the incentive for investors to hold riskier assets like Bitcoin, which does not yield any interest. As long as US yields continue to rise, it will remain a headwind for the BTC price.
Moving forward, the main events to watch on the macro front are the US ISM Services PMI data and the official US jobs report. There is a likelihood of stronger-than-expected data that could push yields even higher. Other factors to keep an eye on include the fallout from Sam Bankman-Fried’s trial, the former FTX CEO, and the performance of the first Ether futures ETFs in the US, which have had low trading volumes thus far.
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With both Bitcoin and Ether (ETH) range-bound, traders with a higher tolerance for risk may turn to opportunities in the highly illiquid shitcoin/meme coin market. DEXTools provides insights into the top-performing low-cap coins.
One notable low-cap coin is Master Shifu ($SHIFU), which had an explosive start, rallying around 300% in a day. It has a market capitalization of approximately $240,000, liquidity of nearly $220,000, over 200 holders, and over $400,000 in trading volumes. However, investors should exercise caution as the token’s liquidity is not locked.
Another interesting coin is HairyPlotterFTX ($FTX), a joke coin that gained 240% in the past 24 hours. It has a market cap of $3.2 million, liquidity of around $280,000, close to 800 holders, and $2.3 million in trading volumes. Similar to Master Shifu, caution should be exercised as liquidity is not locked.
Oozaru Vegeta ($VEGETA) is another shitcoin that experienced a strong first day of trading, gaining over 200%. It has a market cap of approximately $175,000, over 225 holders, and nearly $550,000 in trading volumes. While the token contract has only two alerts, investors should remain cautious as liquidity is not locked.
However, it is important to note that shitcoins carry high risks as most of them lack a real value proposition. For investors seeking higher probabilities of near-term gains, engaging in crypto presales could be an alternative high-risk-high-reward investment strategy. These presales involve buying tokens of up-start crypto projects to support their development. While they are typically sold at cheap prices, there is a history of presale investments delivering exponential gains. Identifying projects with strong teams and revolutionary crypto applications/platforms can offer good risk/reward ratios.
Cryptonews provides insights into the best crypto presale projects of 2023, helping investors navigate this high-risk asset class. However, it is essential to remember that crypto investments are speculative and carry the risk of losing all capital, and this article is for informational purposes only.
In conclusion, Bitcoin’s consolidation in the mid-$27,000s follows a reversal from its one-month highs. Rising US yields pose a headwind for the BTC price, and upcoming macro events and developments such as the US jobs report and the Ether futures ETFs’ performance should be monitored. Traders seeking higher risks may explore opportunities in the low-cap shitcoin/meme coin market. Meanwhile, crypto presales offer an alternative high-risk-high-reward investment strategy, and Cryptonews provides insights into the best projects of 2023.
