July 2023 has been an exciting month for investors in general. From Ripple's partial victory to multiple hacks and the start of a new fad, meme coins. These meme coins are altcoins based on frogs, roaches, hamsters and many other creatures. While some pick up steam, others do not. In the latest development, things have taken a wild turn as a token called BALD rug pulls, which caused losses to hit $68 million. If that was not enough, the latest developments include a lawsuit against Richard Heart, the founder of cryptocurrency project Hex and a rehashing of the SEC vs. Ripple lawsuit's decision.
Read more: With Ripple’s victory tainted, what’s next for XRP price?
Meme coin galore
Regardless, Bitcoin price action continues to hover around the $30,000 level seen for a month with no directional bias in sight. The interesting part is what’s happening with altcoins on DEXs, known as Decentralized Exchanges.
DEXs have become the focus with the launch of animal-themed cryptocurrencies like hamsters, roaches, snails, etc. Many traders who like to get down and dirty have flipped a few thousand dollars into life-changing money. Some of these tokens’ prices have increased by around 10,000% over the weekend.
Read more: Hamsters, roaches or snails: Animal-themed cryptocurrencies take center stage among crypto traders
The brunt of this recent phenomenon is clearly visible in Centralized Exchanges (CEXs), whose volumes are on track to fall to the lowest point of 2023.
CEX trading volume
What does this mean?
A relatively low volume leaves the crypto market open to manipulation and volatility. With the United States Federal Reserve set to decide on interest rates this week (on July 26), crypto markets might get turbulent and could potentially trigger a reaction that ends the month-long sideways movement.
A 25-basis-point hike is all but common knowledge and is already priced in by markets considering the Nonfarm Payrolls (NFP) and Consumer Price Index (CPI) numbers seen over the last few weeks. So, any deviation from the normal could trigger a volatile move for cryptos.
Read more: What can crypto traders expect from Fed’s interest-rate decision?
Traders need to be extra cautious considering the low volumes and the important macro event set to take place this week.
More on BALD and Base coverage:
Coinbase Layer 2 blockchain traders drawn to three-digit gains in BALD as Bitcoin, Ethereum rally fades
BALD meme coin on Coinbase Layer 2 Base chain yields massive gains for traders overnight
Ethereum L2 meme coin BALD, under Coinbase incubation, rug-pulls $68 million from investors at “presale stage”
Is SBF secretly behind BALD? Crypto Twitter debates latest conspiracy
BALD rug pull wipes out 90% of value, hitting Base DEX LeetSwap: A timeline of events
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.