It’s been a tough 48 hours for cryptocurrency investors, with most coins and tokens seeing significant price declines.
Several factors have combined to create a pervasive bearish sentiment in the market – although some coins are now in the process of rebounding.
This article discusses three reasons crypto prices crashed in the past few days before highlighting which altcoins are bouncing back and showcasing strong bullish momentum.
1. SpaceX Reportedly Sells Bitcoin Holdings
The first reason crypto prices have been taking a hit is that SpaceX, the space exploration company founded by Elon Musk, has reportedly sold off all of its Bitcoin holdings – totaling over $370 million.
This news sent shockwaves throughout the crypto market, given that Musk has been one of the most high-profile supporters of $BTC.
Musk’s dumping of Bitcoin fed fears that institutional investors may be spooked by the cryptocurrency market, leading many retail investors to liquidate their holdings.
As a result, crypto prices across the board have been dwindling, prompting the Crypto Fear & Greed Index to drop to just 37 – designated as “Fear” territory.
2. Federal Reserve Remains Hawkish
Another reason for the market’s price crash is the release of the Federal Reserve’s minutes from the most recent FOMC meeting.
These minutes highlighted that the Fed remains hawkish in its battle against rampant inflation in the US.
Several committee members emphasized that continued rate hikes would be necessary, dashing hopes of a “pivot” anytime soon.
This hawkish stance has drawn investors away from riskier asset classes like cryptocurrencies and towards safe-haven assets like treasury bonds.
Many crypto investors had hoped that easing inflation rates would prompt the Fed to pause rate hikes – but this latest revelation makes it clear that such optimism was misplaced.
3. SEC’s Appeal Against Ripple Ruling Sparks Concern
Finally, crypto prices have been trending downward thanks to the continued fallout from the SEC’s decision to appeal July’s favorable court ruling in its battle against Ripple Labs.
Although many market commentators believe that an appeal won’t be upheld, this announcement has reignited fears and uncertainty surrounding the regulatory landscape for cryptocurrencies.
The SEC’s aggressive stance has been a cause for concern in the crypto community – and the potential implications of a successful appeal could impact hundreds of coins and tokens.
Which Altcoins Are Rebounding?
Amid these volatile market conditions, not all cryptocurrencies are succumbing to the bearish pressure.
Let’s now look at which altcoins are bucking the trend and showing signs of strength.
Sonik Coin Defies Bear Market & Gears Up for Uniswap Listing
Sonik Coin ($SONIK) is a new meme coin that is excelling, even in the face of broader market pressure.
The Sonik Coin presale phase kicked off this week, allowing early investors to buy $SONIK for just $0.000014 ahead of the planned Uniswap listing.
Within three days, this presale has raised nearly $150,000 in funding – evidencing the growing support from meme coin investors.
Sonik Coin’s Telegram channel has also seen remarkable growth, with an influx of new members joining in the past 48 hours.
Given that Sonik Coin includes a high-yield staking protocol, many are touting it as a potential breakout star in the meme coin space, thanks to the passive income opportunities it offers.
Visit Sonik Coin Presale
Wall Street Memes Presale Enters Final Stage After Raising Over $25m
Another meme coin performing admirably in the face of crypto market volatility is Wall Street Memes ($WSM).
Wall Street Memes’ presale has been one of the talking points of the meme coin space in recent weeks, given that it has now raised over $25.1 million – and counting.
However, the presale is now in its penultimate stage, meaning prospective investors only have a small window to buy $WSM before it’s listed on major exchanges in the coming weeks.
There’s a growing belief that $WSM’s listing could prove explosive due to the project’s community backing.
Over 1.1 million people support the Wall Street Memes brand, with 19,000+ regularly discussing the token in the official Telegram channel – setting the stage for future success.
Visit Wall Street Memes Presale
Sei Price Rockets 151% Since Binance Listing
While most cryptos have been experiencing a sharp price decline, $SEI has been soaring.
Since making its Binance debut on Tuesday, $SEI has risen 151% – although it was up by over 650% at its peak.
Although the $SEI price has pulled back slightly, trading volumes remain elevated, indicating ongoing investor interest.
Moreover, the token is currently ranked second on CoinMarketCap’s list of the top trending cryptocurrencies globally.
With a growing need for fast and scalable blockchain platforms, Sei is uniquely positioned to meet this demand, leading many investors to believe in its long-term potential.
Polkadot Shows Resilience & Bounces Off Key Support Level
Finally, Polkadot is another cryptocurrency that has shown impressive resilience in the face of a market storm.
The $DOT price is up just over 4% in the past day, making up for some losses sustained earlier in the week.
$DOT appears to have bounced off the support zone around $4.40, which was formed in mid-June.
Additionally, sentiment analysis from CoinGecko reveals that over 76% of the trading community is bullish on $DOT’s prospects.
Although the token still has a long way to go to return to November 2021’s all-time high, the signs are undoubtedly positive for Polkadot in the near term.
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