After the recent rallies in Bitcoin (CCC:BTC-USD), some cryptocurrencies may be ripe for profit-taking. When your portfolio shows a lot of green, greed can kick in and keep you invested longer than necessary. Today, the focus is on the three top cryptos to sell right now.
Not to sound any bearish alarms, but there are reasons why you should consider selling these cryptos. However, the market is pricing in the same cheap money environment of 2020-2022 set by the Federal Reserve, making risky assets like crypto all the more attractive.
The reasons the Fed wanted to cut interest rates again this year could be fading away soon. Considering that inflation metrics like the PCE have stood stubbornly high, any change in the Fed’s language could bring about a severe market tantrum. These cryptos to sell could soon erase their recent gains if the market gets upset.
Bitcoin (BTC-USD)
Who better to hedge away your downside risk than the king itself? Considering a reduction in your Bitcoin holdings could seriously reduce the potential pain in your future portfolio. After breaking past an all-time high price of $69,000 recently, some could look away and let greed take over.
Throughout 2022, the Fed hinted at inflation being slightly higher than comfortable. As they followed, these hikes dropped Bitcoin’s price to below $20,000 from its high of roughly $67,000.
History may not repeat itself, but it can surely rhyme. Now that inflation is back to stubbornly high levels, the Fed could abandon its plans to cut interest rates and throw Bitcoin back to its lows. Of course, these are hypothetical scenarios. However you don’t want to risk giving up your gains, do you?
Floki Inu (FLOKI-USD)
Now that asset managers are accepting cryptocurrencies, investors are dropping meme coins left and right. Floki Inu (CCC:FLOKI-USD) becomes a clear target as a topped crypto to consider selling now. With banks like J.P. Morgan Chase & Co. (NYSE:JPM) allowing clients to trade crypto, the excitement runs away from these smaller coins.
Other meme coins have attracted market attention from many retailers. However, for Floki Inu, the story doesn’t look so rosy. According to this Google Trends chart, Google searches for the words “Floki Inu” have declined in the past month, a warning sign of potential bearish times to come.
There are definitely other more suitable cryptos to give you better returns and safety. Knowing this, you couldn’t be caught holding a meme coin that is sure to crash to near zero, or even get to zero. If you hold this one, it might be time to start cutting down your exposure.
Binance (BNB-USD)
The world of crypto can often be linked to fraudulent activity in a sort of black market. Today, a crypto investor’s biggest fear is being realized in Binance (CCC:BNB-USD), yet its price is now at a 52-week high.
Its former CEO, Changpeng Zhao, has now resigned and pleaded guilty to several charges in the United States. Most of them deal with federal money laundering; you can probably say that the apple doesn’t fall far from the tree. If this tree is made of fraudulent activity, how safe could your money be if you were to hold it in Binance?
After a big rally of more than 100% so far into this year alone, this topping crypto is giving you a second chance. A second chance to get your money out and walk away with a hefty profit.
The top cycle could be almost fully formed. You could soon start seeing negative media around crypto. To get ahead of the curb, get away from the crypto asset class, and buy a dip after the dust settles. Do yourself a favor and drop these cryptos to sell.
As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
