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Cryptocurrency prices collapse, token presales continue to work well
The once-booming cryptocurrency market appears to be entering a period of greater volatility than usual. The main cryptocurrencies such as The price of $BTC and $ETH fell (12% and 11% respectively since the beginning of the month) despite the recent halving of Bitcoin, which historically has had a positive effect on the market.
This decline coincides with a broader market correction as investors stay put cautious about high inflation and a potential recession.
The Fed balances inflation concerns with economic growth
The possibility of a disconnect between the stock market and the economy as a whole was the key topic at the latest meeting of the Federal Open Market Committee (FOMC).
The head of the Central Bank he underlined that as stock markets have begun to recover, there is a possibility that we are entering a period of stagflation. In this scenario, high inflation persists alongside economic stagnation.
Fed Chair Jerome Powell warned as much Inflation in the United States is still too highand its removal may take longer than expected.
As stock market investors express concern about the potential for rising interest rates, typical during periods of high inflation, the The Fed takes a reassuring “pro-economy” position..
Chief Investment Strategist Scott Helfstein promised as much keep rates stablehighlighting that the The Fed is focused on keeping the economy strong even if that means inflation is not falling as fast as desired.
The economic depression casts a shadow on the cryptocurrency market
Given the uncertain economic outlook, investors appear to be wary of riskier assets such as cryptocurrencies.
And while some investors may view cryptocurrencies as a hedge against inflation, their effectiveness in that role is questionable.
$BTC collapsed below $60,000his lowest since the end of February, despite recent analyst predictions that it would reach $70,000 after the halving. $SOL has passed 9.22% within a week, now trading at $133, and $DOGE from 14.55%now at $0.1282.
In addition to global economic recession, former CEO of Binance Changpeng “CZ” Zhao was sentenced to four months in prison For violation of the banking secrecy law in November 2023.
Cases like this tend to undermine investor confidence in the cryptocurrency market, leading to an overall price collapse.
Another factor in this accident could be Powell’s confirmation in the 2023 FOMC meeting that Stablecoin legislation is about to be implementedalong with a recommendation to Congress for CBDC development.
Many cryptocurrency experts could do this see strict regulations as a departure from the decentralized philosophyblocking investments until the situation calms down.
High Risk, High Reward: The Allure of Token Pre-Sales During a Cryptocurrency Crash
While established cryptocurrencies are experiencing a bearish turn, we notice a surprising trend: token pre-sales seem to defy the bearish sentiment.
So, the first multi-chain meme coin Dogeverse ($DOGEVERSE) raised 10 million dollars in just two weeks. Sealana ($SEAL) showed equally significant investor sentiment, reaching $130,000 in the first 24 hours of pre-sale.
This increase in investor interest in seemingly riskier coins may be due to hopes of a quick turnaround in a volatile market. As established coins decline, some investors may seek short-term gains purchasing in advance with a discount.
Closing thoughts
The cryptocurrency market is in a precarious position, but it’s not all doom and gloom. While the next few months will likely be marked by continued volatility, some the new projects show that there is still hope for the revival of the sector.
As always, we want to remind you that cryptocurrencies are a high-risk investment. In these uncertain times, the the importance of carrying out due diligence doubles.
Never invest more than you are willing to loseand follow industry news to stay up to date on the latest developments and regulations that could affect cryptocurrency prices.
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