Schlagwort: crypto business

Ethereum price drifted lower on Wednesday as its correlation with the Dow Jones and the Nasdaq 100 indices continued. The coin dropped to a low of $1,964, which was its lowest level this week. It was a sea of red as other cryptocurrency prices nosedived.

Don’t fight the Fed

ETH price declined sharply as volatility in the market continued. The closely-watched CBOE volatility index rose by more than 5%.

There were several catalysts for this volatility. First, investors were reacting to the statement by Jerome Powell on Wednesday during an event sponsored by Wall Street Journal. In it, he reiterated that inflation was the biggest challenge facing the economy. He then reiterated that the Fed would do whatever it could to push inflation towards its target of 2.0%. 

Therefore, investors believe that this means that the bank will not come to its rescue like it did in 2018 and during the Covid pandemic. As such, it will continue hiking interest rates by 0.50% in the remaining meetings. It will also start a period of quantitative tightening. As such, Ethereum price is falling as investors avoid fighting the Fed.

Read our Ethereum price prediction.

US stocks correlation

ETH price is also crashing as the correlation with American stocks continues. The Dow Jones declined by more than 1,100 points while the tech-heavy Nasdaq 100 index declined by more than 560 points. 

The decline was triggered by the relatively weakness in the retail sector. The Target stock price crashed by more than 25% while Walmart fell by more than 10% after the firms published weak quarterly results. 

Their results showed that the biggest American companies were seeing wage inflation affect their businesses. As such, the trend could continue in other sectors of the economy. 

In the past few months, there has been a close correlation between American stocks and cryptocurrencies like Ethereum.

The post 2 reasons why the Ethereum price is plummeting appeared first on Coin Journal.

Cryptocurrency prices have had a difficult year in 2022 as investors continue worrying about a number of factors. The most important challenge in the industry is the Federal Reserve, which has committed to do whatever it could to lower inflation. It has already hiked interest rates by 0.75% and hinted that it will continue hiking rates this year. Most importantly, the Fed has said that it will start implementing quantitative tightening.

There have been other challenges in the crypto industry such as regulations and the crash of Terra LUNA, Terra USD, and affiliated platforms like Anchor Protocol. In this article, we will look at some of the best cryptocurrencies to invest for short-term gains. 

ApeCoin (APE)

ApeCoin is a relatively new cryptocurrency that was launched in 2022 by Yuga Labs. It is a digital coin that aims to power the Bored Ape Yacht Club ecosystem, which is the biggest NFT platform in the world. Yuga also hopes that ApeCoin will power its other products such as the metaverse and games. 

At the time of writing, ApeCoin price is trading at $8.50, giving it a market cap of over $2.4 billion. While its price has declined sharply, there is a possibility that it will bounce back as the developers launch new products. This makes it a good cryptocurrency to invest in for the short term.

Kyber Network Crystal (KNC)

Kyber Network is a relatively small cryptocurrency that could do well in the short term. It is a platform that allows traders to trade or invest in cryptocurrencies from across the chains. This means that you can swap tokens in chains like Ethereum, Polygon, Avalanche, and Cronos among others. According to its website, it has facilitated volumes of more than $7 billion. 

The Kyber Network Price declined sharply after the collapse of Terra. But it has done relatively well since then and I expect that its trend will continue as investors buy the dips. KNC has a market cap of more than $217 million.

Synthetix Network (SNX)

Synthetic Network is another crypto to invest in for short-term gains. It is a blockchain platform that is in the DeFi industry through its derivatives features. Its concept is that it allows developers to create derivatives products across multiple assets like cryptocurrencies, stocks, indices, and commodities. 

As a result, a derivative of Apple makes it possible for one to trade Apple shares in a derivative format. Synthetix has a total value locked (TVL) of more than $538 million. The SNX price will likely do well in the near term as the derivatives industry continues doing well.

STEPN (GMT)

STEPN is a relatively new blockchain project that is in the move-to-earn industry. Its concept is relatively simple. Users install an app in their smartphones and are then rewarded using GMT for running and walking. In addition to this, the network has an NFT element.

STEPN’s market is continually growing as the number of people embrace the platform. Therefore, there is a likelihood that the GMT price will keep rising in the coming months. A key challenge for STEPN is that competition from the likes of Step App and Sweat Coin.

Theta Network (THETA)

Theta Network price has crashed by more than 88% from the all-time high that it reached in 2021. Its market cap has dropped to more than $1.2 billion, making it the 56th biggest cryptocurrency in the world. For starters, Theta is a platform that is changing the video distribution industry. 

It uses a decentralized method where anyone can host videos in their free storage and then earn money from it. The platform launched TDROP,  a platform that lets people mint and buy NFTs. Therefore, while the token has declined sharply, there is a likelihood that it will bounce back in the near term.

The Sandbox (SAND)

The Sandbox is one of the biggest platforms in the gaming, metaverse, and NFT industries. The platform allows people to buy virtual land, host virtual events, play games, and trade NFTs. It has managed to attract leading companies like HSBC and Standard Chartered, which are some of the biggest banks in the industry. 

The SAND price has dropped by more than 85% from its all-time high. Therefore, there is a likelihood that the Sandbox price will have a relief rally in 2022.

Hedera Hashgraph (HBAR)

Hedera Hashgraph has been one of the best cryptocurrencies to buy for short-term gains. For starters, Hedera is a blockchain project that aims to become a better alternative to Ethereum and Solana. It claims to have faster speeds and that its blockchain is carbon negative. Hedera is also owned by some of the leading companies like IBM, Google, LG, Ubisoft, and Boeing. 

The Hedera Hashgraph price has fallen by 83% from its all-time high while its total market cap has moved to $2 billion. With its ecosystem growing, there is a possibility that the HBAR price will bounce back.

Cosmos (ATOM)

The Cosmos price has had a difficult performance this year. The most recent catalyst for the sell-off was the collapse of the Terra ecosystem. This was a notable event since Terra was built using Cosmos’ SDK. Therefore, the ATOM price declined as investors predicted reduced activity. 

However, these fears are likely overblown since Cosmos is much bigger than Terra. Besides, Terra did not collapse because it was built using the SDK. Therefore, ATOM is a good short-term and long-term investment.

Ethereum Name Service (ENS)

Ethereum Name Service is a unique blockchain project that is changing the domain registry business. People can use its network to buy domains that have a .eth suffix. The network has a near-monopoly in this industry. It has also moved to the NFT industry. Therefore, while the ENS price has declined sharply, there is a possibility that the coin will recover.

Learn how to buy Ethereum.

Litecoin (LTC)

Litecoin price has declined sharply this year. To a large extent, the coin has even lost its correlation with Bitcoin. Still, it is one of the oldest coins in the industry, meaning that it has trust of investors. If the digital coins bounce back, there is a possibility that Litecoin will also rise.

Learn how to buy Bitcoin with a debit card.

The post 10 Best Cryptocurrencies to Invest in 2022 for Short-term Gains appeared first on Coin Journal.