7 Cryptos to Watch as the Blockchain Hits $1 Trillion Again

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After weeks of trading below the all-important $1 trillion mark, the market caps of all cryptocurrencies have finally broken the rising wall, albeit barely. Still, for blockchain advocates eager to reverse the Fed’s monetary policy, this is a small milestone event. Over the last year, central banks have tightened the money supply dramatically, particularly in the risk-on asset class. But with inflation easing, supporters want a strategic reorientation.

There is no denying the possibility of such a pivot happening, which bodes well for cryptocurrencies. “Fed tightening appears to be easing, and inflation risks appear to be low,” said Charles Hayter, CEO of crypto data site CryptoCompare, in an email. CNBCWe expect the world to be cautious about rate hikes.”

However, investors should be careful. In the most recent bull market, cryptocurrencies reached their all-time high of $545 billion in early 2018. Shortly thereafter, the sector’s market capitalization plummeted to about $140.5 billion in late March. By early May, the sector was worth about $302 billion, more than doubling before imploding again. In other words, be careful. Anything can happen in crypto.

BTC-US Dollar
Bitcoin $22,978.30
ETH-US Dollar
Ethereum $1,618.49
USDT-USD

Tether $1.00
BNB-USD
BNB. $309.85
ADA-US Dollar
Cardano $0.37
SOL-USD
Solana $24.33
DOGE USD
Dogecoin $0.08

Crypto to watch: Bitcoin (BTC-USD)

Continuing the remarkable run, Bitcoin (BTC-US Dollar) is below $23,000 at the time of writing. Earlier this year, BTC fell below his $17,000. Within a few weeks, contrarian gamblers have earned returns of around 35%. Now the question is, should you sell for an even bigger return or keep digging?

What’s even more amazing about Bitcoin and other cryptocurrencies is their resilience.Despite bankruptcy of digital asset lenders Genesis Global Capital, BTC brushed off the negative impact. Instead, the main catalyst underpinning cryptocurrencies could center around Fed policy. BTC could be in the race if the monetary tightening strategy is reversed.

Still, it’s important to keep things in perspective. After the initial crash of Bitcoin price in February 2018, BTC climbed about 32% before falling gradually. Therefore, the investor should sustain this rise for more than a month. Otherwise, the bear may be preyed upon from resurrection.

Cryptocurrency to Watch: Ethereum (ETH)

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Another name for Crypt that continues to impress onlookers, ethereum (ETH-US Dollar) started the year at around $1,200. ETH is currently trading at his $1,635, and in less than a month he has earned 36%. From a technical analysis perspective, ETH is currently significantly above the 50- and 200-day MAs.

Essentially, Ethereum also successfully wiped out the Genesis Global Capital bankruptcy along with other major cryptocurrencies. But now all attention is on the upcoming Shanghai hard fork. Targeted for release in March 2023, this protocol update will enable the withdrawal of Beacon Chain Stake Ether (ETH). Coindesk.comEthereum developers have also created a “shadow fork” to provide a testing environment ahead of the Shanghai upgrade.

While the situation bodes well for ETH, investors should be aware that Ethereum doubled in value between April and May of 2018, slipping into blockchain purgatory. Investors should therefore be careful not to bet excessively on this or any other cryptocurrency.

Cryptocurrency to Watch: Tether (USDT)

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As a stablecoin tether (USDT-USD) is pegged 1:1 with the US dollar, so its value does not change significantly. Over the past few years, Tether’s long-term ownership claim has made some sense. With the dollar constantly declining purchasing power, investors had an incentive to try risky assets like cryptocurrencies. However, due to the aforementioned changes in Fed policy, crypto traders should consider carefully.

For example, on a year-to-date basis at the time of writing, Tether has gained 0.048% of market value. In contrast, the dollar’s purchasing power increased by 0.30 percent in November-December last year. Therefore, by simply holding regular old dollar bills, everyday individuals can reap greater benefits from just sitting in cash.

To be fair, holding a tether allows interested parties to get crypto at lightning speed. However, cryptocurrencies remain a risky proposition as the Fed has not said with any certainty that it will lower its benchmark interest rate.Combined with the collapse of other stablecoins, investors should beware of excessive exposure to USDT. there is.

BNB (BNB)

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under guarding binance virtual currency exchange, BNB (BNB-USD) has been in the unfortunate spotlight of competing platforms going bankrupt. In the last week, the coin has gained more than 7% of its market value, and has gained more than 5% in the last 24 hours since the time of writing.

From a technical analysis point of view, BNB certainly looks promising with the current price above the 50 and 200 DMA. Earlier this year, BNB traded at around $244. As I write these words, it’s up close to $322 representing a 322% return.

Although impressive, BNB recovered from March to June 2018 following a correction in January of that year. From a low of around $8 to a peak of around $17.27, BNB captured around 116% of the market value. Again, the 32% return this year is impressive, but investors should keep everything in perspective.

Cardano (ADA)

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Other cryptocurrencies posted definitively promising chart patterns, but recovery Cardano (ADA-US Dollar) leaves room for mild concern. Don’t get me wrong, Cardano is very impressive. In its January opener, the ADA traded about a quarter’s worth. But at the moment, the ADA is just below his 38 cents. Rounding up, we’re talking an impressive return of 52%. January isn’t over yet.

Still, what has bothered some potential investors is Cardano’s failure to break the 200 DMA so far. Indeed, it is close. 200 DMA is 40 cents, while ADA is trading at 38 cents, leaving a 5% gap and some change. It’s nothing in the crypto world. Nevertheless, it stands out as many other non-stablecoin digital assets have been blown above 200 DMA.

Additionally, despite Cardano’s stratospheric run, 2018 saw better performance as a deadcat bounce. That year he recorded a 149% return for him between April and May. So yeah, it’s great that you’re excited about crypto right now. But keep everything in perspective.

Solana (SUN)

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Being branded as the Ethereum killer due to its ability to facilitate fast transactions at a fraction of the costs associated with the ETH network Solana (SOL-USD) has generated a lot of interest among blockchain developers. Soon, an investor strictly seeking the capital gain potential of the cryptocurrency boarded and sent SOL to the moon.

Unfortunately, Solana is notorious for FTX bankruptcy.but Reuters Solana and FTX reportedly had little to do with each other, and FTX founder Sam Bankman-Fried’s candid endorsement of SOL sent the coin plummeting. enjoyed one of the Starting at around $10 per coin, the price jumped to around $25.

SOL newcomers are sure to be delighted, but this digital asset still has a mountain to climb. Long term support is about $30. So Solana needs another 20% rally from here. A 20% move makes a lot of sense considering we are talking about cryptocurrencies. Still, it’s worth treading carefully.

Dogecoin (DOGE)

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but dogecoin (DOGE USD) has a controversial profile due to its irreverent stance, but this rebellious demeanor also attracts onlookers. Paper aims for a better economy, a better world, or at least a better blockchain.At Dogecoin, the emphasis seems to be on community and fun.

It’s not a particularly serious company, but that’s why it’s fresh. Dogecoin allows you to gamble. So every time you buy DOGE, you know what you’re getting yourself into. There is no cover in the sense of framing your speculations as a means of dealing with world hunger.

Certainly, DOGE has had a good year so far. His DOGE, which started at around 7 cents in January, has risen to 9 cents and produced a 28% return. Still, back in April 2018, Dogecoin was up 119% of him before eventually falling and leveling off. So it’s okay to be a little skeptical about the current rally.

Josh Enomoto on publication date I held long positions in BTC, ETH, USDT, ADA, and DOGE. The opinions expressed in this article are those of the subject author of InvestorPlace.com. Publication guidelines.

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Seven crypto posts to watch as blockchain hits $1 trillion again first appeared on InvestorPlace.