2023-8-23 00:05 |
Cryptocurrencies are going through major challenges as US bond yields surge and regulatory scrutiny continues. Bitcoin has slipped below $26,000 and has formed bearish flag and double-top patterns. Other cryptocurrencies like Ethereum, Solana, and Cardano have all plunged.
Despite the doom and gloom, Shiba Memu, an upcoming meme coin is thriving. Its token sale has raised over $2.2 million from global investors who hope to strike it rich when it is listed by key centralised and decentralised exchanges (DEX).
Why cryptocurrencies are plungingThere are three main reasons why cryptocurrencies have lost momentum in the past few weeks. First, indications are that demand for digital coins has retreated after rising in the first part of the year. The volume of cryptocurrencies traded in most CEX exchanges has dropped to the lowest level in years.
Second, there are concerns about the next actions by the Federal Reserve. The performance of the bond market shows that investors expect that the Fed will hike interest rates by another 0.25% in September. US Treasury yields have jumped to the highest level in more than a decade. Bond prices move inversely with the yields.
Finally, cryptocurrencies have dropped because of woes on China, which have led to a sense of fear in the market. The most recent data shows that the Chinese economy is slowing at a quick pace. Key parts of the economy like industrial production, retail, exports, imports, and fixed asset investments.
As I wrote here, the Chinese economy is facing challenges that can be summarized by 4 Ds: demand, demographics, debt, and decoupling. All these factors have in turn led to a balance sheet recession as people and companies focus on reducing their debt.
Weakness in China has impacts for cryptocurrency prices in two main ways. First, it leads to a sense of fear in the market, pushing most people to safer assets. Second, many crypto holders are now selling and moving to cash.
Shiba Memu is thrivingDespite the doom and gloom, there are some bright spots in the crypto industry. The brightest one is Shiba Memu, a new cryptocurrency that is gaining momentum, The developers have already raised over $2.2 million in one of the most promising token sales of the year. You can buy the token here.
Shiba Memu is benefiting from two important themes in the market this year. First, it is benefiting from the demand of artificial intelligence products. And second, many meme coins have transformed people into instant millionaires. Some of the most popular new meme coins are Pepe and Milady Meme Coin.
According to Shiba Memu’s white paper, the platform will use AI to grow its ecosystem through marketing. The AI technology it will use are Natural Language Processing (NLP), Sentiment Analysis, and Image and Video Recognition among others.
The ultimate goal is to ensure that the platform has a thriving ecosystem with millions of users.
Still, like all investments, Shiba Memu has some risks, meaning that you should implement quality risk management strategies. For example, you should only invest funds you are wiling to lose.
The post Shiba Memu frenzy accelerates as fear spreads in crypto industry appeared first on Invezz.
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