Crypto Chronicle with NewsCrypto
Welcome back NewsCrypto readers, it’s time for another edition of Crypto Chronicle!
Today we are going to find out why Bitcoin rallied to $38k. It bailed out traders who were longing into the resistance (maybe you are one of them) but the next time most likely luck luck won’t be on your/their side.
We are also going to dive into how to find the next 100x memecoins.
Here's what we got on the menu today:
1. 5 Reasons Why Bitcoin Pumped to $38k
2. Guide to Finding 100x Memecoins
3. Funny meme
5 Reasons Why Bitcoin Pumped to $38k
1. ETF Excitement
First up, we have the crypto market buzzing with the possibility of the US SEC approving several spot Bitcoin ETFs. The approval window, which opened on November 9, has experts like James Seyffart and Eric Balchunas from Bloomberg betting on a 90% chance of approval by January 10, 2024.
2. Institutional Interest
Next, we've seen an unprecedented level of institutional interest in Bitcoin, particularly through exchange-traded products. Of them all BlackRock's Bitcoin spot ETF filing has been the most significant catalyst. Imagine Bitcoin walking into a high school reunion and suddenly being the most popular kid in the room. That's the level of attention we're talking about.
3. Supply and Demand Dynamics
Data from LookIntoBitcoin shows that over 70% of Bitcoin hasn't moved for at least a year. It's a testament to the strength of Bitcoin's tokenomics and the HODL mentality.
4. Fed's Liquidity Injection
Arthur Hayes, co-founder of BitMEX, has highlighted the significant liquidity being injected into the market and its impact on cryptocurrencies. Hayes points out that understanding the RRP and TGA dynamics is crucial in predicting market movements, which is a bit like reading tea leaves, but with more charts.
Turns out this was not true
5. DXY's Dumps ➡️ Bitcoin Pumps
Lastly, the inverse correlation between Bitcoin and the DXY has been a notable factor. As the DXY faced resistance and began to fall, Bitcoin's value conversely increased.
As you can see below when DXY bounced (marked with first orange circle) BTC started to fall, inversely was true when DXY started falling BTC started pumping (marked with second orange circles)
Guide to Finding 100x Memecoins
Meme coins, often inspired by internet jokes or pop culture, have become more than just digital chuckles. They represent a unique, albeit risky investment opportunity. With their ability to generate massive returns (and equally massive losses), they've caught the attention of investors worldwide. It's like betting on the underdog in a race - sometimes, they surprise you!
A Treasure Map to Meme Riches
The key tool? Dexscreener, a platform that provides real-time data on new and existing projects.
Step 1: Chose Your Chain
First, pick your blockchain playground - Ethereum, BSC, Arbitrum, or others. It's like choosing your favorite flavor of ice cream; each has its own unique taste.
Step 2: The 'New Pairs' Tab
Under the 'New Pairs' tab, you'll find freshly minted coin pairs. These are the riskiest yet most lucrative. For example $GROK made over 4500% if you were early but if you invested at the top your investment would now be worth 97% less.
Step 3: Filter Like a Pro
Avoid trending coins, as they can be manipulated. Use the 'Filter' tab to sort coins by liquidity, fully diluted valuation (FDV), pair age, and 24-hour buy/sell activity. It's like sifting through sand to find hidden gems.
Spotting the Next Big Meme Coin
Once you've filtered, you'll likely find a majority of meme coins. But the work isn't done yet. Look for coins that align with trending narratives or upcoming events. Just like Grok soared after Elon Musk's tweet about his new chatbot.
Do Your Homework
Before diving in, do some detective work:
- Visit the project's website
- Investigate the team and community
- Read any available papers
- Check social media and charts
A Word of Caution
While the potential for high returns is tantalizing, remember that the waters of meme coins are fraught with risks. Scammers are increasingly sophisticated, creating projects that look legitimate. So, invest wisely and never more than you can afford to lose.
No matter what you do at least don’t be like this Newbie crypto trader.