- Pav Hundal and Ted Coaldrake from Swyftx sat down for their Tapping Into Crypto podcast to discuss the current state of the market.
- Bitcoin has fallen 5% over the past week, with volatility due to changing cash rates and increased liquidity a potential catalyst.
- Altcoins have had a mediocre 2024 to date, with all but a handful being handily outperformed by Bitcoin.
- That said, the podcast hosts suggest this presents excellent growth opportunity, especially for actively-developed projects with good narratives such as Polygon and Chainlink.
The crypto market has been in a rut this past week. Bitcoin has fallen by more than 5%, with many major altcoins seeing losses in the double digits. And according to Pav Hundal and Ted Coaldrake, team members of popular Aussie exchange Swyftx, BTC might still have more room to drop.
Speaking on the Tapping Into Crypto podcast, the duo discussed important macroeconomic decisions that may influence crypto’s current downturn. For starters, the US Federal Reserve kept the cash rate steady in yesterday’s meeting and unveiled plans to cut rates only once this year – instead of the three times they’d previously promised.
However, other major economies (such as Europe and Canada) acted contrary to the US and decided to cut rates in the past week or two.
This is typically a good signal for markets and crypto, as it increases cash flow. However, an increase in cash flow, plus the slightly bearish news coming from the US Feds, does mean that short-term volatility in the cryptosphere is likely until the market settles.
Related: Bitcoin Dips Below $68K, Traders Eye DeFi Liquidation Trends for Potential Sharp Rebound
Can Altcoins Finally Make Their Move?
Although altcoins might be “absolutely decimated” by the market volatility, such dips can create exciting buying opportunities for investors. The past month hasn’t been great for most altcoins, with many going backward in light of Bitcoin hitting a new all-time high. The vaunted 2024 altcoin season is still well out of arm’s reach.
However, according to Coaldrake and Hundal, this presents a great growth opportunity moving forward. In particular, the podcast hosts focus on how narrative can be a huge driver of value (perceived or otherwise) among the crypto ecosystem – especially for altcoins.
The podcast highlights Polygon as a potential breakout project in the next altcoin cycle, largely on the back of Polygon 2.0. The upgrade to the network will include a token migration (from MATIC to POL), which will help the cryptocurrency “spend some time in the spotlight”.
The hosts also discuss Chainlink as a project with significant growth prospects. The Oracle blockchain made major strides in the industry in 2023, forming important partnerships with financial institutions like ANZ and Swift.
Related: AVAX Soars as ANZ Bank, Chainlink and Avalanche Explore New DeFi Frontiers
The team has also added a powerful interoperability protocol (CCIP) and shifted its attention to tokenisation, an asset class many predict will bridge traditional finance to the blockchain world.
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