This week, I want to build on something I laid a foundation for in the last newsletter. The narrative is simple, Bitcoin price fails to deliver the volatility, so investors are going off centralized entities to on-chain to find some. The result of this is a burst in Decentralized Exchange (DEX) altcoins that rally hundreds and thousands of percentages in 24 hours.
While most of these altcoins are scams, very few make it to the mainstream attention. The frog-based crypto PEPE is one such altcoin that is listed on major centralized exchanges.
In this latest on-chain altcoin season, Coinbase’s BASE chain caught the attention of many investors as token BALD rallied 30,000x in under 48 hours.
The fact that investors cannot bridge their capital out of the Layer 2 token made it much more amusing to on-chain degenerates on the constant lookout for altcoins that make it big.
This week, however, the BASE Layer 2 chain might get a second taste of the spotlight again as the project announced the launch of an official bridge on August 9.
The launch will give investors a chance to realize their unrealized profits made on tokens such as BALD and TOSHI. Additionally, it could trigger a burst in buying pressure in anticipation of this bridge.
So, for on-chain degenerates, who do not care about the risks or if the altcoins are scams, this is a perfect opportunity.
Bitcoin price, on the other hand, continues to hover around the $29,000 level with no directional bias in the short term. But for long-term holders, the three-month chart provides a clear picture, and it suggests BTC could slide down to the $24,777 to $21,473 zone.
Moreover, short-term investors could find some respite as the U.S. Federal Reserve will be announcing the inflation numbers this week on August 10 at 12:30 GMT.
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
Crypto Today: Bitcoin is less than 10% away from all-time high as Ethereum ETF approval anticipation brews
Bitcoin trades around $68,000 early on Monday, less than 10% away from its all-time high of $73,777 on Binance. Ethereum ETF anticipation brews among traders and Ether investment products see inflow of over $45 million in the past week.
Ripple lawsuit settlement likely soon, says Brad Garlinghouse, XRP hovers around $0.60
Ripple (XRP) trades around a key psychological level of $0.60, early on Monday. The altcoin recently made headlines for its highest weekly gain of 2024, over 40%. XRP sustained nearly 21% of the gains from the last seven days.
Solana could cross $200 if these three conditions are met
Solana’s total value locked climbs 18% in July to $5.38 billion, as seen on DeFiLlama. Solana sustains over 20% gains in the past seven days, corrects nearly 3% on Monday. Active addresses and new address count in the Solana network have increased throughout July.
ALT, WLD, ENA, ID set for $200 million token unlocks next week
The crypto market is set to experience another wave of token unlocks next week, with Altlayer (ALT), Worldcoin (WLD), Ethena (ENA), and Space ID (ID) set for a combined token unlock worth about $200 million.
Bitcoin: Will BTC continue its bullish momentum?
Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166.