- Bitcoin (BTC): The benchmark of cryptos may continue to rise due to inflationary pressures.
- Ethereum (ETH): One influential voice is rooting for Ethereum to be the valuation king.
- Tether (USDT): Bearish activity is focusing on USDT, though this is a risky proposition.
- XRP (XRP): Despite the ongoing lawsuit, the folks behind XRP are surprisingly confident.
- Cardano (ADA): Although ADA has been on the move recently, it needs to get that $1 level.
- Monero (XMR): Coordinated trading in XMR demonstrates the real power dynamics behind cryptos.
- JasmyCoin (JASMY): Although extremely speculative, JASMY may be onto something big.
Given the volatile nature of cryptocurrencies, sector veterans know better than to expect a smooth linear ride. However, when the total market capitalization of all cryptos dipped to $1.81 trillion earlier this week — reaching lows not seen since April 12 of this year — some analysts started to worry. Naturally, you don’t want your heavy hitters to slip below key technical levels.
At the same time, cryptos seem to have a cadence following their remarkable reawakening in late 2020: just when you think circumstances are about to move in a decisively bearish trajectory, a surge of bullish activity comes in. And that’s exactly what happened in the evening hours of April 18, putting major cryptos back above benchmark thresholds that hold both psychological and market sentiment importance.
While anything and everything can happen with virtual currencies, the bulls may have a slight edge over the bears in the coming weeks ahead. True, recession fears are rising — a circumstance my colleagues and I have discussed extensively. But on the other end, the Federal Reserve expanded the money stock with unprecedented speed and scale. This inflationary pressure may bolster cryptos, some of which have become digital safe havens.
As well, the Federal Reserve presumably must raise the benchmark interest rate above the inflation rate to tackle surging prices — a matter which the central bank apparently doesn’t have the political will to do. Therefore, these cryptos could be substantial beneficiaries.
A legitimate argument can be made regarding Bitcoin’s (BTC-USD) global pertinence. According to a survey compiled by Statista.com in 2018, 75% of U.S. adults had heard about Bitcoin, while 19% had never heard about cryptos whatsoever.
By now, I’m speculating that if this same survey were to be taken today, the Bitcoin awareness should be in the 90% range or higher. Evolving from niche innovation to possibly becoming the currency of the internet, BTC has come a long way. And it might still give investors some love after a major scare.
Just a day ago from the time of this writing, Bitcoin dropped a tick below the $39,000 range, setting off alarm bells. To be fair, the worsening crisis in Ukraine likely contributed to the downturn. However, BTC has shot back up around the $41,000 level. Personally, investors may want to hold as BTC is essentially digital gold and because inflationary pressures are only rising.
Long the No. 2 digital asset by market cap, Ethereum (ETH-USD) is one of the most important cryptos in the blockchain space. While Bitcoin captures the headlines, the Ethereum architecture forms the backbone of myriad decentralized projects. But will its time as the constant sidekick to BTC come to an end?
According to BitBoy Crypto founder Ben Armstrong, the answer is an emphatic yes. Speaking to Yahoo Finance, Armstrong stated that he ultimately believes “Ethereum will pass Bitcoin in market cap. I don’t even think it’s a question, it’s just a matter of when.”
In his assessment, Bitcoin’s cadence of block reward halving creates four-year cycles of boom-bust dynamics. To break this predictability, a catalyst must shake things up, such as Ethereum taking the lead in the virtual currency market.
For now, investors will have to be satisfied with ETH breaking above $3,000 territory after slipping below the $2,900 level. Further down, the rising cost of everything may bode cynically well for Ethereum as it is a reputable name as far as cryptos are concerned.
A controversial though useful class of cryptos, stablecoins — or digital assets pegged to hard fiat currency, typically the U.S. dollar — have become a favorite of blockchain investors. Primarily, stablecoins like Tether (USDT-USD) act as substitutes for greenbacks but in the decentralized realm. Therefore, users don’t have to deal with cumbersome fiat exchanges: With Tether, their funds are available right away to advantage market opportunities.
But in early April, the Wall Street Journal reported that a few investment firms have “placed substantial bets in recent months that the price of tether will fall.” Essentially, these bears don’t believe that each USDT unit is backed by one dollar. If Tether doesn’t have enough paper to back up its digital claims, we could see a run for the stablecoin.
Theoretically, such a scenario wouldn’t be just a Tether problem as evidence indicates USDT helps undergird the Bitcoin price and perhaps other cryptos. Such accusations have always been a dark cloud hanging over USDT. Nevertheless, belief in the virtual currency space is strong, suggesting that a stumble might not come soon.
Lawsuits are unpredictable which is why I don’t want to issue too many strong opinions about XRP (XRP-USD), the digital asset created by Ripple Labs, which is at the epicenter of a Securities and Exchange Commission lawsuit. To quickly recap, the SEC views XRP as a security and, therefore, it’s subject to securities laws, while Ripple sees it as a legitimate virtual currency.
If you’re the type that wagers on judicial rumblings, then Ripple CEO Brad Garlinghouse’s words might be encouraging to you. Speaking about the lawsuit during the Paris Blockchain Week Summit, Garlinghouse stated that “[t]he lawsuit has gone exceedingly well, and much better than I could have hoped when it began about 15 months ago.”
Some of his confidence stems from certain realities governing cryptos and their juxtaposition against publicly traded securities. The chief executive mentioned, “If you determine XRP as a security of Ripple, we have to know every person that owns XRP … That’s an SEC requirement. You have to know all of your shareholders. It’s not possible.”
That’s a significant point that might not be lost with the court presiding over the case.
Easily one of the most vexing names among cryptos, Cardano (ADA-USD) again finds itself in an ambiguous position. Recently, ADA has worked its way up around 6% after struggling alongside other digital assets as a wave of selling pressure hit the market. So far, it has done a decent job of hanging on despite technical headwinds.
On the other hand, Cardano finds itself yet again below the $1 level. Granted, at time of writing, it’s only a few cents shy of the critical mark. Therefore, by the time you read this, ADA could be well above this vital demarcation point. Still, if you place importance on factors such as technical momentum, you’d like to see the coin maintain its baseline support at least at $1.
But does that mean ADA is out for the count? One factor that is interesting is that during the latest period of volatility, Cardano dropped to around 88 cents. While obviously posing concerns for stakeholders, the coin dipped into 76-cent territory on Feb. 24, coinciding with Russia’s dangerous decision to invade Ukraine. Rising support could work out for ADA but it has to deliver the goods soon.
While many digital assets have printed solid performances in the 24 hours between April 17 and April 18, Monero (XMR-USD) stands out because of its double-digit gains; 11.1% as I write this to be precise. Much of that can be traced to a community-wide initiative to prove that exchanges selling cryptos are on the up and up regarding their balances.
As Vice.com mentioned, stakeholders of Monero — which initially leapt to fame for its privacy-driven blockchain architecture — have planned to simultaneously withdraw their holdings from multiple exchanges in an effort to prove that these platforms are selling XMR coins that they don’t actually possess.
It’s like the crypto equivalent of the meme-stock phenomenon and it might spark a real revolution in the space. Contrary to stock exchanges, there’s not a whole lot that organizations can do to stop such coordinated actions, in this case because Monero specializes in anonymity.
Speaking of which, as centralized governments prove incapable of providing for the needs of their citizenry, XMR could also rise as a symbol of independence and resistance. I’d say watch this space closely.
With the last idea on this list of cryptos to consider, I’m going to dive into the extremely speculative space with JasmyCoin (JASMY-USD). Currently priced at under 2 cents, I’m not entirely sure where JASMY’s ultimate trajectory will land. As a stakeholder myself, hopefully, that direction is much higher from here, but you must be prepared: This token is extremely speculative.
Fundamentally, the underlying blockchain of JasmyCoin seeks to integrate the benefits of the Internet of Things (IoT) with the blockchain. In this process it aims to mitigate or outright remove the negatives of increased connectivity. Under traditional IoT platforms, users exchange their privacy for the convenience and utility of connected solutions. However, online privacy concerns are rising, per data from the Pew Research Center, leading to possible trust issues with IoT.
This is where JASMY comes in. Using blockchain technologies, the network can deliver the myriad benefits of connected applications while providing encrypted security measures. This best-of-both-worlds model has many speculators — myself included — excited about JASMY.
However, it’s also the “penny stock” of cryptos, so please do not invest more than you can afford to lose.
On the date of publication, Josh Enomoto held a LONG position in BTC, ETH, USDT, XRP, ADA and JASMY. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.