Bitcoin (BTC) is experiencing a minor pullback on Friday, as traders take profits following the recent surge in price fueled by optimism surrounding the approval of a US spot Bitcoin ETF. The world’s largest cryptocurrency is currently trading just above the $33,500 mark, representing a decline of close to 2% for the day. This drop, however, is not a cause for concern among bullish investors, who acknowledge that a pullback was to be expected after Bitcoin’s impressive breakout to fresh yearly highs.
Despite the recent decline of nearly 5% from its highs above $35,000 earlier this week, Bitcoin has still recorded a gain of approximately 14% over the past seven sessions and close to 25% for the month. The hopes of a spot Bitcoin ETF approval continue to drive optimism about increased institutional adoption. The latest CoinShares digital asset fund flows report indicates another significant week of inflows into Bitcoin investment products, suggesting that institutions are getting involved in the crypto market even before ETF approvals.
Institutional adoption is not the only factor supporting Bitcoin’s current strength. Some market participants are pointing to the decoupling of Bitcoin from stock markets, with Bitcoin experiencing substantial gains this month while US stock prices have dropped significantly. This supports the growing narrative that Bitcoin is considered a safe haven asset, much like gold. Wall Street leaders, including BlackRock’s Larry Fink, have echoed this sentiment throughout the year.
Despite the release of the latest Core PCE inflation figures from the US, which show little alteration in expectations that the Federal Reserve will maintain high interest rates due to strong economic conditions and persistent inflationary pressures, Bitcoin and the broader crypto sector have outperformed traditional markets. This suggests that crypto investors are focusing more on positive crypto-related fundamentals, such as adoption, as opposed to macroeconomic factors.
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Looking at other major altcoins, XRP, Solana, Cardano, and Dogecoin are mostly trading flat to lower on Friday but still hold onto strong gains for the week. With the consolidation of blue-chip crypto markets after a significant pump, traders are likely to turn their attention to the highly illiquid shitcoin/meme coin markets in search of potentially larger movers.
One such low-cap coin gaining attention is TokenFi ($TOKEN), a newly launched coin that claims to power a platform aiming to simplify the crypto and asset tokenization process. It experienced an explosive rally on Friday, pumping around 14,000% in a matter of minutes. However, caution is warranted regarding this token, as DEXTools’ security audit has identified three concerning aspects of its smart contract, including potential honeypot, modifiable tax, and external call risk. Investors should exercise extreme caution, as this token may be a scam.
Another coin making waves is SuperMariaPorsche911Inu ($SILKROAD), a shitcoin that has surged over 250% in the past 24 hours, making it one of the best performers in the shitcoin space on Friday. With a market cap of around $330,000, trading volumes exceeding $500,000, locked liquidity of approximately $80,000, and over 1,100 holders, this token does not exhibit any concerning aspects in its contract, suggesting it may not be a scam. However, investors should still exercise caution and be aware of the lack of fundamental value associated with shitcoins.
For those looking for alternative investment strategies, crypto presales present a high-risk, high-reward opportunity. These presales involve investors purchasing tokens of upstart crypto projects to support their development. Historically, presales have delivered substantial exponential gains to early investors. While these projects carry risks, thorough research can help identify projects with strong teams and promising visions for revolutionary crypto applications/platforms. Cryptonews provides a list of what it deems the best crypto presales of 2023 to assist investors in making informed decisions.
It’s important to note that crypto is a high-risk asset class, and this article is provided for informational purposes only and does not constitute investment advice. Investors should be aware of the potential to lose all of their capital and exercise caution when making investment decisions in the crypto market.
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