Major cryptocurrencies are retracing on Thursday as traders digest the latest US economic data releases and earnings from Microsoft and Meta, with investors eyeing up what might be the best crypto to buy now to benefit from the market’s recent dip.
Bitcoin (BTC) slipped 2.7% to trade just above $70,000 as traders took profit following its recent run higher and test of all-time highs in the $73,000s.
Mega cap stocks were a drag on Thursday’s US stock market and broader risk appetite. Despite beating earnings, Microsoft and Meta’s guidance on rising AI-related costs appeared to unnerve some investors.
Microsoft & Meta are intensifying capital expenditures to develop AI data centers, driven by surging demand.
This week, Microsoft disclosed a significant increase in spending, reaching $20B in the first fiscal quarter.
In an earnings call, Meta CEO Mark Zuckerberg stated,… pic.twitter.com/H3Zfy7Uxzj— Shelly Palmer (@shellypalmer) October 31, 2024
US economic data, meanwhile, was broadly consistent with the notion that the US will manage a so-called “soft landing,” where inflation falls back to 2% without the US economy slipping into recession.
September Core PCE inflation was 0.3% as expected, and the Q3 Employment Cost index showed wages rising at a quarterly rate of 0.8%, while September Personal Spending figures were robust.
*US SEPT. PCE PRICE INDEX RISES 0.2% M/M; EST. +0.2%
*US SEPT. CORE PCE PRICE INDEX RISES 0.3% M/M; EST. +0.3%
*US JOBLESS CLAIMS 216,000 IN OCT. 26 WEEK; EST. 230K pic.twitter.com/uaCSZ3p20g— Christian Fromhertz
(@cfromhertz) October 31, 2024
That broadly supported the argument for the Fed to cut interest rates by 25bps next week and then again in December – the market’s current base case expectation, per the CME’s Fed Watch Tool.
Friday’s official US jobs report will be closely watched in case it upends this narrative. A stronger-than-expected report could dampen rate cut bets and weigh on crypto.
But broadly, the macro backdrop remains positive for major cryptos so long as the Fed continues gradually easing and the US economy remains robust.
Meanwhile, pro-crypto ex-US President Donald Trump appears to have all the momentum going into next week’s presidential election – this has been touted as a possible catalyst to launch major cryptos to fresh yearly highs.
As the market dips back from highs, investors will assess which cryptos to buy now.
Best Crypto to Buy Now – Which Are They?
Ethereum (ETH)
The world’s second-largest crypto by market capitalization, Ethereum (ETH), continues to underperform the market, dropping over 5% in the past 24 hours compared to Bitcoin’s 2.4% decline, per CoinMarketCap.
ETH was last trading just above $2,500, down close to 40% from its earlier yearly highs. Metrics such as the ETH/BTC ratio and ETH’s market dominance were all around three-and-a-half-year lows.
The crypto suffers from bearish narratives surrounding weak spot Ethereum ETF demand, weak on-chain activity, and growing competition from more agile rivals like Solana.
But Ethereum remains the dominant DeFi chain, commanding over 50% of TVL per DeFi Llama.
Assuming that cryptos break out to new yearly highs before the end of the year, the Ethereum narrative could suddenly switch to ETH being an “undervalued gem.”
ETH is not dying.#ETH / #BTC is doing what it always does.
I think ETH/BTC bottoms this quarter and goes up in 2025.
Once ETH/BTC passes the 50D SMA, the bottom is in IMO.
Still a risk ETH/USD drops one more time in Nov/Dec but hedging makes sense pic.twitter.com/xAbg8Szi3N— Benjamin Cowen (@intocryptoverse) October 30, 2024
Ethereum is poised for a quick 2x rally to record highs, making it potentially the best crypto to buy now.
Kaspa (KAS)
Innovative PoW blockchain protocol Kaspa (KAS) was one of the outperforming cryptos on Thursday. According to CoinMarketCap, its token has gained around 3% in the past 24 hours.
Traders appear to be buying the KAS dip. The token last traded around $0.1150, down over 45% from the record highs it hit above $0.20 in late July.
KAS has found solid support at its April/May lows just above $0.10 and could be set for a swift 2x rebound, assuming a broad market rally is inbound.
Could Raydium (RAY) Be the Best Crypto to Buy Now?
One of Solana’s leading DEXs, Raydium (RAY), is another top crypto performer on Thursday, rising 3% per CoinMarketCap despite the market’s broader decline.
Solana DEX trading volumes have been booming recently, launching RAY to its highest levels since early 2022, above $3.50, earlier this month.
RAY has since retraced to around $3.15. But it remains over 80% down from its 2021 record highs.
For investors who think that Solana’s glory days lay in the future, not back in 2021, RAY could be one of the best cryptos to buy right now to gain ecosystem exposure.
Alternatively, high-potential Solana meme coins could also provide excellent upside potential as Solana’s ecosystem grows.
Analysts at cryptonews.com keep a close eye on the meme coin market as they hunt for the next 50x gem.
Here are some of their favorite Solana meme coins to invest in right now.
10 Best Solana Meme Coins to Buy in October 2024
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