Major cryptocurrencies have been in free fall on Friday, with Bitcoin (BTC) last down around 8% in the last 24 hours and Ether (ETH) last down around 5.0% in the $25,700s and $1,650 areas respectively.
That takes losses on the week for Bitcoin and Ether to over 11% and 9% respectively, marking one of the worst weeks so far this year.
The broader crypto market’s total capitalization has dropped around $110 billion this week to only slightly above $1 trillion.
In terms of what’s causing the crash, a combination of factors have been weighing on broad crypto sentiment.
Firstly, macro is a headwind– US long-dated bond yields are back near multi-year highs as traders bet the strong US economy means higher interest rates for longer, while US stocks (correlated to crypto in recent years) have been pulling back.
Thinner than usual August liquidity conditions, which mean the month is often volatile and bearish (in the stock market, at least), have also been cited.
Finally, the fact that Bitcoin and Ether both broke below major support levels, calling their 2023 uptrends into question, has also weighed heavily on sentiment.
News that the SEC is poised to approve a raft of new Ethereum Futures ETFs has failed to lift the mood.
With major cryptocurrencies under pressure, traders looking for a better possibility of near-term gains continue to turn to the shitcoin/meme coin markets.
Here are some of the best-performing low cap coins on Friday.
Tele (TELE)
TELE, the token that powers a web3 protocol that claims to be able to allow its users to send crypto with just their phone numbers.
Last trading around $0.26, Tele is up an incredible more than 24,000% in the last 24 hours and last had a market cap of around $2.5 million, as per DEXTools.
24-hour trading volumes was last around $4.1 million, with TELE having now accumulated over 1,400 holders.
$220,000 worth of liquidity is locked for at least six months, reducing rug pull risk.
Its worth noting, however, that DEXTools’ GoPlus security audit identified 4 alerts regarding the token’s smart contract – a 3% buy and sell tax, plus an anti-whale mechanism and the potential to implement a trading cooldown.
Shib Bonk (SBONK)
A newly launched shitcoin called Shib Bonk (SBONK) is surging higher on Friday.
SBONK just hit all-time highs around $0.0000066, giving it a market cap of around $280,000.
SBONK has seen 24 hour trading volumes of around $590,000 and has nearly $230,000 in liquidity, though this isn’t locked, meaning the chance of a rug pull remains.
DEXTools’ GoPlus security audit has not identified any concerning aspects to the token contract, however, which should ease fears about the token being a scam.
XRP HarryPotterObamaPacMan9Inu (XRP)
A shitcoin called XRP HarryPotterObamaPacMan9Inu (XRP) that was launched a few days ago just hit fresh all-time highs and, as per DEXTools, was last up around 70% in the last 24 hours, making it one of the best performers.
XRP last had an impressive market cap of around $65 million, with over $850,000 in locked liquidity and over 2,600 holders.
The shitcoin has clocked up nearly $4 million in trading volumes in just the last 24 hours.
The DEXTools’ GoPlus security audit highlights two concerning aspects of the token’s contract, an anti-whale mechanism and a possible trading cooldown, as well as a 2% buy and sell tax.
Alternatives to Consider
For crypto investors looking to diversify, an alternative high-risk-high-reward investment strategy to consider is getting involved in crypto presales.
This is where investors buy the tokens of up-start crypto projects to help fund their development.
These tokens are nearly always sold very cheap 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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