Bitcoin (BTC) is pulling back on Friday amid profit-taking in wake of its recent US spot Bitcoin ETF approval optimism powered pump this week, with the world’s largest cryptocurrency last trading just above the $33,500 mark.
That means BTC is down close to 2.0% on the day, which marks its biggest one-day decline in over two weeks.
That won’t concern the bulls, many of whom would probably admit that Bitcoin was due a bit of a pullback in wake of its recent impressive breakout to fresh yearly highs.
Indeed, despite its drop of now close to 5% from this week’s highs above $35,000, Bitcoin is still up around 14% in the past seven sessions, and is up close to 25% for the month.
Spot Bitcoin ETF approval hopes will continue to pump optimism about continued institutional adoption, with the latest CoinShares digital asset fund flows report this week pointing to another big week of inflows into Bitcoin investment products, showing institutions increasingly aren’t waiting for ETF approvals to get involved.
But institutional adoption isn’t the only narrative supporting Bitcoin right now – others are excitedly pointing to the fact that Bitcoin has decoupled from stocks recent, seeing a big rise this month versus large drops for US stock prices.
That supports the growing narrative that Bitcoin is a safe haven asset akin to gold, a narrative more and more Wall Street leaders like BlackRock’s Larry Fink have been parroting this year.
The latest Core PCE inflation figures out of the US have done little to alter expectations that the US Federal Reserve will keep interest rates high for a long time, given the still strong economy and still above-target inflationary pressures.
The Fed will update its guidance to markets at next week’s meeting and this expected hawkish message should keep stocks under pressure and US bond yield at elevated levels close to multi-decade peaks.
But Bitcoin and the broader crypto sector’s recent outperformance despite still tough macro conditions suggests that crypto investors are focusing more on positive crypto-relevant fundamentals (adoption etc.), rather than macro.
Looking at other major altcoins on Friday, the likes of XRP (XRP), Solana (SOL), Cardano (ADA) and Dogecoin (DOGE) are flat to lower on Friday, though are also all holding onto strong gains for the week.
With blue-chip crypto markets consolidating after a decent pump, traders will probably continue to turn to the highly illiquid shitcoin/meme coins markets in the hunt for bigger potential movers.
Here are some of the top-performing low-cap coins, as per DEXTools.
A newly launched coin called TokenFi ($TOKEN), which claims to power a platform of the same name that “aims to simplify the crypto and asset tokenization process and eventually become the foremost tokenization platform in the world”, has seen an explosive rally on Friday.
Earlier in the day it pumped 14,000% in a matter of minutes, and currently has a market cap of over $35 million, as per DEXTools.
That kind of rally is very suspicious and, needless to say, $TOKEN has three very concerning aspects to its smart contract, as per DEXTools’ security audit, including it being a potential honeypot, having a modifiable tax and having external call risk.
Investors should be very cautious of the token, as it could easily be a scam token.
A shitcoin called SuperMariaPorsche911Inu ($SILKROAD) has pumped over 250% in the last 24 hours, making it one of the best performers in the shitcoin space on Friday as per DEXTools.
Its market cap was last around $330,000, with 24-hour trading volumes of over $500,000, locked liquidity of around $80,000 and over 1,100 holders.
The token has no concerning aspects to its contract, as per the DEXTools’ security audit suggesting it isn’t a scam.
However, shitcoins like this have no fundamental value and investors should thus be very careful that anything they invest in it they might not be able to get back, should other investors decide they don’t want to invest in the shitcoin.
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.
See the 15 Cryptocurrencies
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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