The crypto market has had a difficult start to the year. Markets surged after Donald Trump won the election, as cryptocurrencies rallied, driven by the prospect of a crypto-friendly administration and relief from former SEC Chair Gary Gensler’s “regulation through enforcement” approach.
Trump’s inauguration sent the markets flying again as Bitcoin (BTC) surged past $100,000 and set a new all-time high at $109,000. However, the bump did not last long. Three months into the year, nearly every cryptocurrency is in the red, with no signs of a turnaround happening anytime soon. Several factors have contributed to this decline, including fears of a trade war with China, inflation concerns, tariffs against Canada and Mexico, and concerns about a recession. In such a scenario, investors are moving their capital away from risk assets like crypto to safe-haven assets. With the markets bearish, which cryptocurrencies can give investors a decent return?
Bitcoin (BTC)
Bitcoin is the flagship cryptocurrency and has stood the test of time despite being a highly volatile asset. BTC has witnessed several downturns greater than 20% in the past, with Ark Invest’s Cathy Wood stating there have been at least five times in BTC’s history when its price has dropped over 50%. While investors are de-risking and moving their capital to safer assets, BTC remains the best investment option for traders.
The flagship cryptocurrency has often been called digital gold and has attracted considerable institutional interest as companies add the asset to their reserves, further increasing its long-term value. President Trump has also issued an executive order to create a strategic Bitcoin reserve. While BTC may have declined from its January highs, analysts expect the price to bounce back, with many expecting a climb to $150,000 by the end of the year.
Ethereum (ETH)
Ethereum is one of the leading Layer1 blockchain networks with a large and diverse ecosystem. It is often called the building block of the modern blockchain economy, making ETH very valuable. Ethereum has established itself as a major DeFi powerhouse, and with the Trump administration adopting a crypto-friendly approach, Ethereum could become the bedrock of a modern, blockchain-based financial system.
However, ETH has struggled in recent months, with its price plunging to multi-month lows. This gives traders an excellent opportunity to buy the dip and make a significant profit when ETH rebounds.
Dogecoin (DOGE)
Dogecoin (DOGE) is the largest meme coin by market capitalization, giving it a significant advantage over others. It was one of the first cryptocurrencies, created as a spoof on BTC. Investors who bought DOGE at launch and HODL-ed the meme coin have made a significant profit. Dogecoin surged in popularity after its launch, with the token and blockchain having several use cases. The meme coin’s value soared in 2021 and it established itself as one of the ten largest cryptocurrencies by market capitalization.
Dogecoin has several high-profile backers and an enthusiastic community. Tesla CEO Elon Musk is the project’s most high-profile backer and has taken the initiative to champion the token and put it miles ahead of the competition.
Husky Inu (HINU)
Husky Inu is one of the newest meme coins to enter the market. The project is designed to bring value and utility to token holders and supporters of the project by leveraging the Solana blockchain. Husky Inu aims to establish itself in the meme coin ecosystem by establishing a strong and supportive community that boasts of enhanced rewards and innovative features. The project launched its presale with immense success and has raised over $720,000 to date.
Husky Inu is also planning to launch an Earn App and a decentralized exchange. The Earn App will reward users for interacting with the project and completing simple tasks, while the decentralized exchange will facilitate trading and improve the utility of the HINU token.
In Closing
While the crypto market may be in the doldrums, it allows traders to buy tokens at a lower price and make significant profits when the asset’s value goes up. However, traders must be careful when investing in a bearish market because not all cryptocurrencies are a good buy during an adverse market. Always be thorough with your research when investing, whether its a bull market or a bear market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Crypto Daily™ – Read More