The cryptocurrency markets experienced volatility on Monday as traders assessed the potential easing of geopolitical risks in the Middle East and the release of stronger-than-expected US economic data. This has led to a reduction in bets on near-term rate cuts from the US Federal Reserve. Bitcoin was trading just above $64,000, down over 2% on the day, with sell pressure increasing after robust US retail sales data was reported. Despite this, Bitcoin was up close to 5% from its lows on Saturday, following a downturn over the weekend due to conflict between Iran and Israel. However, fears of further escalation eased on Sunday, leading to a recovery in the market.
The focus in the cryptocurrency market this week will be on Federal Reserve Chair Jerome Powell’s remarks on Tuesday. Expectations of interest rate cuts by the Fed in 2024 have been supporting crypto prices, but strong US data has cast doubt on this narrative. Major cryptocurrencies like Bitcoin might face downward pressure, especially with the upcoming BTC halving, which could result in increased sell pressure from miners. Investors seeking quick returns may need to explore alternative options for the best cryptocurrencies to buy now.
Some altcoins that are gaining momentum on Monday include Core (CORE), a Layer-1 blockchain protocol that combines delegated Bitcoin mining hash and delegated Proof-of-Stake. Core’s price has surged by more than 50% in 24 hours, pushing its market cap to just under $2 billion and placing it in the top 100 cryptos by market value. Another promising altcoin is NEO, the cryptocurrency of the smart contract blockchain NEO, which has seen a price increase of 13% in the past 24 hours, with a market cap of around $1.4 billion. Pendle (PENDLE), a future yield tokenization and trading protocol, is also performing well and could retest record highs.
Investing in smaller altcoins can be a profitable strategy for quick profits, but investors looking to increase their risk profile should consider investing in new crypto ICOs. Up-and-coming web3 startups often raise funds by selling their native protocol token at a discount in presales. These presales can offer significant gains if the project gains traction and sees an increase in market cap. Investing in new crypto ICOs carries risks similar to traditional start-up investing, including reliance on management competency for success. It can be overwhelming to navigate the multitude of new crypto ICOs, but experienced teams can help identify potential opportunities. Investors should be aware of the high-risk nature of the cryptocurrency asset class and conduct thorough research before making investment decisions.
