After several days in the green, the cryptocurrency market has turned bearish again. This follows news that the Federal Reserve may be about to raise interest rates. However, based on recent rate hikes, it is clear that markets are setting interest rates faster and faster.
The most important crypto news is that Bitcoin is becoming illiquid. Data shows that 76% of all Bitcoin available is currently illiquid. This means that a few large orders on the exchanges can trigger a massive price spike.
This is a double-edged sword, as Bitcoin can easily test extremely low prices, as low as $10,000, or easily test prices above $40,000 or more. Given that Bitcoin is already enjoying massive support at $20,000, there is a good chance of a spike to the upside.
With such spike potential, it might be time to start buying altcoins that could follow Bitcoin’s lead. Here are three of those with the most potential.
The number two altcoin stands out as one of the best altcoins with the potential to do well if Bitcoin rallies. This is because Ethereum (ETH) is in the midst of big news in addition to its status as the biggest altcoin.
Recently, the Ethereum merger was carried out on a testnet, which turned out to be a great success. At the recent EthCC, it was announced that the merger would be completed by September and would push Ethereum to the next level with the goal of becoming the most secure and scalable blockchain platform ever created.
If Bitcoin manages to rise amid this news, chances are Ethereum could outperform many other altcoins.
Shiba Inu (SHIB)
Meme coins have done quite well during the market upswing. Shiba Inu (SHIB), being one of the most famous and successful altcoins, stands among them. As such, if Bitcoin pulls off another rally, Shiba Inu might do well. However, it’s not just about speculating on his past performance. There’s a lot going on within the Shiba Inu ecosystem right now.
For example, the Shiba Inu team recently announced a SHIB-engraved Visa card. With this card, users will burn SHIB when making payments. This means that SHIB is on track for an accelerated decline in total supply, driven by actual uses. That’s a good reason to believe in SHIB.
Despite the weak performance of the crypto market in 2022, the appetite for NFTs remains strong. If Bitcoin surges and FOMO kicks in, NFT cryptocurrencies could get a boost. ApeCoin (APE), one of the best-known NFT cryptocurrencies, could see a massive increase in its value in such a scenario.
Also, with many large companies taking an interest in the metaverse, the APE could get a boost if the Other Side metaverse gains adoption by a large company. Overall, the odds are in favor of ApeCoin.