Ethereum ETF Delay Causes Crypto Prices to Plummet Top Altcoins to Consider Buying on the Dip
Bitcoin and major alternative cryptocurrencies suffered significant declines in prices today, with BTC briefly falling below $60,000.
Experts attribute this downturn to mounting concerns about an impending economic downturn, which may have prompted investors to withdraw from the crypto market.
Ethereum, on the other hand, dropped by 7% from its peak of $3,500 earlier this week, reaching as low as $3,275 during early US trading hours. This decline followed news that the US Securities and Exchange Commission postponed the introduction of spot ETH ETFs. As a result, related assets like Ethereum Name Service, Pepe, and Floki also experienced sharp corrections, with losses approaching double digits.
The broader macroeconomic risks appear to have triggered today’s crash in crypto prices. Some traders argue that the decline was primarily a benign retesting of the $60,000 support level by Bitcoin.
A few also speculate that today’s downward movement aimed to close the gaps left by last weekend’s trading on the CME. Bitcoin often exhibits a pattern of closing such gaps, which occur when significant price movements happen over weekends, while traditional markets like the Chicago Mercantile Exchange are closed.
However, there’s a more bearish interpretation gaining traction. Concerns about an impending recession are intensifying, fueled by reports like today’s ISM services and manufacturing employment outlook, which confirm economists’ fears of economic slowdown. Additionally, the Atlanta Federal Reserve has revised down its Q2 GDP growth forecast from 4% in May to just 1.5%.
Regarding Ethereum, there’s speculation that the SEC’s delay in approving spot ETH ETFs may have contributed to the negative sentiment affecting both Ethereum and other large-cap altcoins. Despite these concerns, Bloomberg analyst James Seyffart remains optimistic, asserting that the ETFs are likely to commence trading in July.
In the midst of the downturn, some investors see an opportunity to buy the dip in certain altcoins. Cryptos offered at a fixed price during their initial coin offerings (ICOs) remain shielded from short-term price volatility. For instance, the BRC-20 token 99Bitcoins (99BTC) has raised over $2.3 million in its presale phase, attracting substantial retail investment. This token is viewed as a strategic bet on Bitcoin’s recovery, poised to deliver significant returns once market sentiment improves.
99Bitcoins, renowned as a Web3 education platform with a substantial following across its website and YouTube, offers its token holders various financial incentives such as staking rewards and exclusive trading signals.
Similarly, newly emerging meme coins are capturing attention. Base Dawgz, a multi-chain meme coin centered around dog themes, raised $2.3 million within a few weeks of its ICO launch. With innovative features like staking rewards and share-to-earn mechanisms, Base Dawgz has garnered positive feedback from crypto influencers, positioning it for potentially massive returns in the future.
Experts believe that both 99Bitcoins and Base Dawgz exemplify strategic opportunities for investors seeking to capitalize on the crypto market’s volatility and innovation.