As Bitcoin (BTC) struggles below $55,000 in wake of the latest US jobs report thanks to ongoing elevated sell pressure from the German government, Bitcoin miners and anticipated sell pressure from Mt Gox creditors, investors are assessing what might be the best crypto to buy now to benefit from the market’s latest dip.
While the headline NFP number was a little stronger than expected, the US jobs reports was largely bullish for the market.
That’s because revisions to prior headline NFP numbers were negative and the unemployment rate was high than expected.
US Jobs Report (June)
NFP: 206k (exp. 190k, prev. 272k, revised 218k)
Unemployment rate: 4.1% (exp. 4.0%, prev. 4.0%)
Earnings M/M: 0.3% (exp. 0.3%, prev. 0.4%)
Earnings Y/Y: 3.9% (exp. 3.9%, prev. 4.1%)
— Newsquawk (@Newsquawk) July 5, 2024
Earnings growth also cooled, as expected. Net-net, the report supports the case for Fed rate cuts later in the year.
That has helped keep US equity indices elevated at record highs.
And that would normally be helping Bitcoin too.
But as noted above, Bitcoin is currently experiencing elevated sell pressure from miners and the German government.
The German Government SOLD 20% of its #Bitcoin balance sheet ($ 3.5 billion).
Brace yourself as it might be a few more weeks of red
as they seem to be aggressively selling throughout the week and only really pausing at the weekends.
The selling pressure started 2 weeks ago… pic.twitter.com/iDEfkRRXsL
— 𝘾𝙩𝙧𝙡 (@CtrlFi) July 4, 2024
Mt Gox repayments have also commenced, and markets appear to fear a substantial margin of this will be immediately dumped on the market.
BREAKING
Mt Gox moves 47,228 BTC ($2.71 billion dollars) from cold storage to a new wallet. pic.twitter.com/3ZdSlC1IX2
— Arkham (@ArkhamIntel) July 5, 2024
Many think these sell pressures could keep BTC under pressure in the near-future.
Technical analysis supports this thesis. Bitcoin recently broke below its 200DMA and its May lows.
A retest of the $51,000-53,000 balance area could be imminent. A dip to sub-$50,000 levels and a retest of January highs around $49,000 is also on the cards.
The risk of further selling suggests Bitcoin might not be the best crypto to buy now for those looking for quick gains.
However, with Bitcoin substantially lower versus earlier yearly highs, now is a great time for those who believe the market remains in a longer-term bull cycle to accumulate aggressively.
Is Bitcoin the Best Crypto to Buy Now?
Selling from Mt Gox, the German government and miners is all likely to be sell pressure that only lasts a few months at most.
Bitcoin could then rebound aggressively by the end of summer.
That’s because Fed rate cuts are likely to begin in September, and Trump is likely to win the US Presidential race in November.
Lower interest rates typically support risk assets – indeed, that is the case right now with US stocks at record highs.
Meanwhile, a Republican led US government is expected to pursue pro-crypto policies.
Selling from miners who are struggling/failing to adjust to lower post-halving rewards has historically petered out within 6 months of the halving.
As sell pressure declines, bullish narratives strengthen, an ETF-demand led price surge could see BTC hit $100,000 before the year’s end.
That’s nearly 2x above Bitcoin’s current levels. That suggests Bitcoin is a strong candidate for best crypto to buy now.
Of course, many crypto traders are targeting much larger upside than 2x.
Such traders will instead be turning to smaller, lesser-known altcoins with higher betas.
Here are a few lesser known coins that could be the best crypto to buy now.
MultiversX (EGLD)
Innovative web3 blockchain protocol MultiversX (EGLD) is an out-performer on Friday.
It was last up 12.5% in the past 24 hours, per CoinMarketCap, and trading close to $32.50.
Its been a tough few months for EGLD. But with the crypto having found strong support in the $27 area in recent weeks, a new rebound could be inbound.
If EGLD can break to the north of its 50DMA (last at $34.70), a return to March highs is possible.
That could mean a quick 2x for EGLD holders. That suggests it could be the best crypto to buy now.
Mantra (OM)
Real-world tokenization protocol Mantra (MANTRA) is one of the only cryptos trading in the green on Thursday.
As per CoinMarketCap, MANTRA is up 12% in 24 hours and trading around $0.82.
The news that Mantra has partnered with a major real estate firm in Dubai has been supporting OM this week.
According to an X post, Mantra will bring over $500 million in real estate assets to the chai OM is now up over 32x from its levels last December as it establishes itself as an RWA leader.
With a fully diluted market cap of only around $720 million, it still has plenty of growth potential.
Assuming it stays an RWA leader and the protocols assets on the chain keep growing, OM could easily still be 10x from here.
It could surely be one of the best cryptos to buy now.
Crypto Alternative to Consider – Crypto Presales
All of the above-noted coins have big potential this bull market.
But for investors hunting even bigger returns, an alternative investment strategy to consider is presale investing.
New crypto projects frequently sell their native tokens to early investors via presales to fund development.
Presale investing is risky, as all investing in crypto is. But if investors can reliably identify high-potential projects, they stand to net massive gains.
Analysts at Cryptonews.com work hard to keep abreast of the presale market. Here are some of their top picks right now.
14 Best Crypto Presales to Invest In Now
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