The crypto market has bounced back into action again after a turbulent few days since the SEC crackdown. Marking a 5.07% increase on the daily chart, the global crypto market cap is at $1.13T as of 21 June 2023. Interestingly, Bitcoin dominance has breached the 50% mark for the first time in two years.
Investors are highly bullish on Bitcoin as the 10.68% surge on the weekly chart indicates, taking it to $28,743. The prominent investors who have gone public about their optimism in Bitcoin include ARK Invest CEO and chief investment officer Cathie Wood.
What you'll learn 👉
Cathie Wood Believes that Bitcoin Can Reach $1M – Here’s Why
In an interview with Bloomberg, Cathie Wood expressed that “Bitcoin is a hedge against inflation.” She holds firm in her $1 million BTC price target, although she sees deflation as a substantial risk going forward. Yet, Bitcoin can outperform other assets as it is “an antidote to counterparty risk in the traditional financial system”.
She has a point, it seems, as three of the four largest bank failures in U.S. history occurred in the last three months. With the next Bitcoin halving event just less than one year away, we are likely to see more investors accumulate the cryptocurrency in the coming months, despite the ups and downs in the market.
BTC Market Cap Dominance 1-Month, 21 June 2023, TradingView
The recent upturn in the price of Bitcoin and its dominance above 50% is a vivid reflection of the shift. The fact that Bitcoin accounts for around half of crypto’s total $1.1 trillion dollar market capitalization reveals that most investors prefer it over altcoins. But there is more. The Ethereum market cap has also crossed that of all the altcoins put together, for the first time since February 2021.
Over the last few months, investors have been confining their portfolios to BTC and ETH, finding a safe haven in them amid all the chaos. The run-ins with regulatory bodies and governments, especially in the US, have also catered to polarization.
Portfolio Diversification is Key to Risk Mitigation, However
Diversification is one of the key aspects of maintaining a healthy portfolio. When you confine your portfolio to just one or two assets, you are increasing your risk. Although BTC and ETH are considered to be comparatively low-risk assets, it is important to remember that:
- Bitcoin is 58.18% down from its all-time high of $68,789 that was hit on Nov. 10, 2021. That is, in just two years, BTC has lost more than half of its value. That’s not promising.
- ETH is doing no better, having lost 62.88% during the same period.
If you look into the matter, you will realize that these steep downturns have more to do with price corrections than adversary market events. For example, with $559B and $218B market caps, BTC and ETH are already saturated. If we balloon them to a point beyond their capacity, they are bound to burst. While Bitcoin and Ethereum are at the top of the game, pouring more money into these two assets doesn’t help the growth of the broader market.
Creativity and tech innovation should be at the heart of the crypto market. The heaping BTC and ETH market caps slow down the rest of the market from exploring the potential of blockchain technology and taking it to more industries. If the crypto growth is confined to Ethereum and Bitcoin blockchains, mainstream penetration of the industry will remain a distant dream.
A Reality Check – Can Bitcoin Reach $1M?
As hard as investors pump Bitcoin, $1M is not a realistic target for it in the present climate. A highly bullish, yet attainable price prediction for BTC in the coming three years is $100,000, after a series of ups and downs. As lawmakers and regulatory bodies realize the integral role of cryptocurrencies in the global economy, traditional investors will feel more comfortable plowing their money into the crypto market.
Still, it will take another five years for BTC to reach the magnanimous $1M target. This is because the Bitcoin blockchain would be proven obsolete in the next eight years. With more blockchains entering the scene with better features and functionalities, the market relevance of BTC will be confined to its collectible value. As the world’s first cryptocurrency, BTC is likely to continue to maintain its status as the world’s largest cryptocurrency as well.
But, the eight-year returns won’t be worth limiting your portfolio to BTC and ETH. There are greener patches in the market.
These Two Altcoins Can Make You a Millionaire Before Bitcoin Hits $1M
While you definitely need highly established assets like BTC and ETH in your portfolio, you need to diversify your portfolio to more niches and assets to make the best of the crypto market volatility.
Meme coins are a good example of the strength of the crypto community and how far it can take an asset. Unlike the rest of the market, they don’t believe in utility or waiting. Instead, they go on steep bull runs overnight to bring generous returns to investors who bought into the asset on time.
Although they have low long-term market relevance, they are worth holding as a short-term investment. If you buy these assets before they launch or just before a rally, they can give you more returns in a few hours than high-cap cryptos can in a year. So, the first cryptocurrency that has the highest growth potential this year is Wall Street Memes (WSM). The WSM presale is already on its way to the $10M mark, hinting at the massive bull run underway on its debut exchange listings.
Utility tokens, on the other hand, focus on giving slow but steady returns, although they go on occasional hikes. It’s best to buy into these assets before they launch, or before they launch products and product features. Among utility tokens, one of the most promising assets to invest in this year is Launchpad XYZ (LPX). It is the native cryptocurrency of a Web 3.0 hub that aims to onboard the next 1M users to the industry. The project is also in the presale stage.
Let’s take a closer look at both these projects and analyze whether they are worth the presale hype.
1. Wall Street Memes (WSM) – Meme Coin with Explosive Potential this Year
Potential ROI: 10-15X on launch, 50X in the month that follows.
Backed by a large global community of over 1 million meme enthusiasts called Wall Street Memes, WSM is poised to become the next sensation in the crypto market, similar to the iconic Pepe.
The Wall Street Memes team ventured into the crypto market with the highly lucrative Wall St. Bulls NFT collection on the Ethereum blockchain in 2021. To the pleasant surprise of the market, the NFTs were snatched up within a mere 32 minutes, cementing the community’s place in the crypto industry.
Introducing $WSM – yep, we’ve gone and done it.— Wall Street Memes (@wallstmemes) May 27, 2023
The community token that's flipping the Wall Street Memes game upside down! 🐂
We have 50% of the #Token supply up for grabs in the #Presale and 30% set aside for rewarding our community.🔥
Let's make some serious waves together,… pic.twitter.com/fH2TMGmglZ
The team is making a comeback in the cryptocurrency market this year with a meme coin fueled by the collective power of its community. The goal is to offer early investors the chance to achieve substantial financial prosperity, tapping into the meme coin hype.
The growing excitement around Wall Street Memes is not surprising, given the strong community behind it. But Elon Musk’s engagement with the Wall Street Memes posts has also fueled the euphoria. That said, the project’s long-term significance is not solely reliant on it.
You might wonder if Wall Street Memes has long-term relevance, given that it’s a meme coin without any clearly defined utility. But WSM showcases its sustainability by allocating an impressive 30% of the total token supply for community rewards. The giveaway and airdrop campaigns will motivate investors to hold WSM, despite the broader market trends. Rather than being a fleeting crypto sensation, WSM’s goal is to enter the top-3 meme coin chart and climb higher.
If you want to make the highest returns from the explosive potential of Wall Street Memes, it’s best to buy the tokens at the ongoing presale. The token is predicted to surge 10X to 15X on its exchange listing.
2. Launchpad XYZ (LPX) – Utility Token Underpinned by an Exhaustive Web 3.0 Hub
Potential ROI: 5-8X on launch, 15-25X over the next months as the project announces new development milestones.
Launchpad XYZ is another cryptocurrency brimming with potential. It is the native token of a Web 3.0 hub, which introduces attractive opportunities in the industry to new and seasoned investors alike. The curated portal features assets that have the capacity to deliver swift returns as well as steady and gradual growth opportunities.
What sets Launchpad XYZ apart from other crypto hubs is its commitment to empowering users, granting them the autonomy to make informed decisions. It offers an array of data, metrics, and analytics regarding various digital assets.
For example, the dynamic Launchpad Quotient (LPQ) is a key highlight of the platform. Derived from an intricate analysis of approximately 400 data points, it serves as an indicator of an asset’s risk and reward potential.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com