Table of Contents
There are times when you should be in the market. Then there are times when you should be watching from the sidelines.
The last two months are a good example of when you should be watching the crypto market from the sidelines.
In our prior Altcoin Reports, we mentioned how we believed the summer months would continue to be bearish for the crypto market and we don't see a trend reversal until at least mid to late September.
To recap the last two months of the crypto market:
Month of July 2024:
During July we saw the continued downward trend from the prior month, with major assets like Bitcoin and Ethereum facing downward pressure. The market was affected by ongoing regulatory concerns, particularly the SEC's continued scrutiny of crypto exchanges and products.
Also, the market's reaction to the broader economic conditions, including rising interest rates and recession fears in major economies, also contributed to the downturn. Additionally, Mt. Gox-related news further eroded confidence in the market, leading to sell-offs.
Month of August 2024:
The downtrend from the prior month has continued into August and is expected to continue until at least mid to late September. Early August was marked by a severe global market crash on August 5 (see image above), which was triggered by unexpected policy changes in Japan, including a surprise interest rate hike, and disappointing economic data from the United States.
These factors led to a sharp sell-off in global equities, which spilled over into the crypto markets, causing significant losses across the board, both for the crypto and stock market.
During this period we could also see the interconnectedness between traditional financial markets and cryptocurrencies, as the market downturn affected crypto trading volumes, leading to widespread liquidations and further depressing prices.
Key Market Factors for September and Beyond:
- Trump's ProBitcoin Stance: If Trump continues to gain traction as a pro-crypto candidate, his potential election could result in more favorable crypto regulations in the U.S., driving bullish sentiment across the market.
- U.S. Bitcoin Reserve: Senator Cynthia Lummis has introduced the "Bitcoin Act of 2024" which aims to establish a strategic Bitcoin reserve for the U.S. Treasury. The plan involves purchasing 1 million Bitcoins over the next five years to hedge against inflation and economic instability. The bill has garnered support from various crypto advocates who believe that incorporating Bitcoin into the U.S. reserves could enhance financial stability.
- Institutional Adoption: Let's not forget the silent but growing institutional adoption of Bitcoin which is expected to continue driving demand for Bitcoin. Major financial institutions, including BlackRock and Fidelity, have been increasingly involved in the crypto space, with Bitcoin at the forefront of their strategies. The entrance of more institutional players could lead to higher prices due to increased demand and reduced volatility.
While nobody can predict the future, we do believe in the long-term growth potential of Bitcoin and the cryptocurrency market as a whole. As we have mentioned in the past, there are many cycles within this space, from altcoin seasons to meme seasons and the cyclical nature of the crypto market, typically marked by the Bitcoin halving event.
At Altcoin Investor we take a long-term approach when it comes to investing in the cryptocurrency market. We focus on undervalued projects with high utility which we believe offer high returns over the long-term.
Top 100 Trending Altcoins
We are seeing a lot of red again in the market this week.
Today's Crypto Fear & Greed Index
Today's Crypto Fear and Greed Index = Fear (27).
Bitcoin & Ethereum Price Movement
Bitcoin decreased 2.33% last week, currently trading at $59.405. In the previous 90 days, Bitcoin has decreased by 11.2%.
Ethereum decreased 0.75% last week, currently trading at $2,622. In the previous 90 days, Ethereum has decreased by 15.98%.
Global cryptocurrency market capitalization decreased to $2.09T (from $2.15T last week).
Top 100 Gainers - Last 7 Days
In the previous 7 days, the biggest gainers (within the top 100):
Aave (AAVE) +19% - Ranked #47
Aave (AAVE) is a leading decentralized finance (DeFi) protocol on the Ethereum blockchain that enables users to lend and borrow cryptocurrencies without intermediaries. It offers innovative features like flash loans, which are instant, no-collateral loans, and gives users the option of stable or variable interest rates. The native AAVE token is used for governance and can provide fee reductions. Aave's risk management includes a safety module funded by AAVE to cover potential losses, making it a secure and flexible platform in the DeFi space.
Helium (HNT) +17% - Ranked #55
Helium (HNT) is a decentralized network designed for the Internet of Things (IoT) devices, allowing them to communicate over long distances via a global wireless network powered by user-operated hotspots. These hotspots provide coverage and are rewarded with HNT tokens, the network's native cryptocurrency. Helium uses LongFi technology, which combines LoRaWAN and blockchain, and employs a Proof-of-Coverage consensus algorithm to ensure reliable network service. This innovative approach aims to create an efficient, user-driven wireless network for IoT devices worldwide.
SATS (1000SATS) +17% - Ranked #91
SATS (1000SATS) is a token issued on the Liquid Network, a Bitcoin sidechain developed by Blockstream. Each token represents 1,000 satoshis, the smallest unit of Bitcoin, equal to 0.00001 BTC. This tokenized form of Bitcoin allows for easier fractional trading and use in applications requiring smaller Bitcoin units, facilitating micropayments and other transactions within the Liquid Network ecosystem.
THORChain (RUNE) +16% - Ranked #53
THORChain (RUNE) is a decentralized liquidity protocol that enables users to swap assets across different blockchains without needing centralized exchanges. It facilitates cross-chain swaps and allows users to provide liquidity to its pools, earning fees and rewards in RUNE, the network's native token. RUNE also plays a crucial role in settlement, security, and governance within the network. THORChain is fully decentralized, offering secure, direct asset exchanges between blockchains, and includes features like impermanent loss protection for liquidity providers.
Meme Coins
We love to hate and hate to love meme coins. These projects are frowned upon by most serious investors because they don't have any intrinsic value however, meme coins are responsible for more crypto millionaires than any other sector in the crypto market.
Top Performing Meme Coins
Meme coins continue to offer some of the most ridiculous returns in the crypto market, with the biggest gainer in the last 30 days, Lovely Inu Finance +4,681,321% (30 days).
The second most popular is Pepe Trump. It can be expected with the upcoming presidential elections in November, we will continue to see politically-themed meme coins perform well.
However, it's important to remember that meme coins do not offer any intrinsic value and are pure speculation. Despite this, the ridiculous returns offered by meme coins continue to draw many people into this sector of the market.
What is the Next 100x Meme Coin?
The next 100x meme coin is likely a coin that has yet to be minted. If you are looking to invest in meme coins, the best opportunity for massive gains happens when buying in as soon as the token is minted.
How do you find these newly minted coins?
To learn more about finding newly minted coins with high potential, check out our article - The 100x altcoin strategy.
Anna Petrov
Monthly Altcoin Picks
To our valued subscribers, during the months of June and July, we did not publish any Altcoin Picks due to the bearish nature of the market. While we do see continued bearish indicators for the remainder of this month, we do anticipate a trend reversal to occur in the month of September.
Our Altcoin Picks are published in accordance with the current market conditions and during bearish markets where we believe the market will continue to fall, we postpone the publishing of the monthly Altcoin Picks. Due to the current market conditions, we will delay the publishing of future Altcoin Picks until more suitable market conditions are met.
While it is impossible to accurately predict the bottom of any bearish trend, we are confident we will start to see a reversal of this trend in mid to late September, in which case there is a high likelihood a September Altcoin Pick will be published.
Our approach and strategy for picking Altcoin is simple - we focus on undervalued, high-utility projects with worldwide market growth offering long-term potential (these are what we call blue-chip cryptos). If you are wondering how we choose our monthly Altcoin Picks, this is the methodology we use.
Thank you to our dedicated members and subscribers for staying with us during this downturn in the market and we hope to resume our monthly Altcoin Picks as soon as the market conditions present more favorable conditions.
If you would like access to our current and past Altcoin picks, consider becoming a member - It's only the price of a few cups of coffee a month.
Our Altcoin Picks for the prior months can be found here.
Thanks and appreciation to all our members!
Until the next report,
Richard.
