Cryptos to watch - 7 Cryptos to Watch as the Blockchain Fights the Fed

7 Cryptos to watch as Blockchain battles the Federal Reserve

As a long-time fan and supporter of cryptocurrencies, I want nothing more than the rise of these “cryptocurrencies to watch.” Unfortunately, we also have to accept economic realities, especially with the Federal Reserve sticking to its tight monetary policy.

In fact, with the disintegration of the money supply, the purchasing power The price of the US dollar rose slightly from June of this year. If the Fed continues to implement its tightening strategies, digital currencies and other risky assets face significant headwinds, all due to simple economic stimulus. In an inflationary cycle, people had two basic choices with their money: spend it or invest it. Otherwise, holding cash will erode wealth. Under the contraction cycle, the opposite loops are true. People have an incentive to hold cash to expand essentially risk-free wealth. Ultimately, this scenario is negative for cryptocurrencies.

Of course, this does not mean that deflationary forces will continue to affect global markets indefinitely. But at the moment, cryptocurrencies are facing huge hurdles and investors should respect this dynamic. However, here are some of the best cryptocurrencies to watch.

Bitcoin (BTC-USD)

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Legendary fund manager Paul Tudor Jones recently said CNBC that he had secondary position in Bitcoin (BTC-USD). According to Coindesk.com, this wasn’t a great endorsement. However, Jones may be right in his dealings with BTC. Earlier, during the massive boom in cryptocurrencies, the fund manager put his weight behind digital assets. Today, it’s a slightly different story.

Basically, Jones remains concerned about the Fed and its fight against inflation. Like others, his concerns center on the central bank’s aggressive approach and its consequences. “If we go into a recession, it will have negative consequences for a variety of assets,” he said. Jones through CNBC an interview.

At the time of writing (late evening on October 10), BTC is struggling to hold the $19,000 level. In the next 24 hours, Bitcoin lost 2% of its market value. Over the following week, it was down 2.6%. Given the technical profile of Bitcoin, investors should be prepared for the possibility of a slow ride to the $10,000 level. About the only event that can break this negativity is a rise above 20K and back towards 30K.

Ethereum (ETH)

Cryptocurrency Ethereum.  Ethereum coin on exchange charts.  Ethereum electronic currency.  Ethereum Price Predictions

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Back in mid-September, Ethereum (ETH-USDCompleted one of the most ambitious projects among cryptocurrencies. Initially, the ETH network used the Proof of Work (PoW) consensus protocol, which evaluated initial computing power to determine transaction validation rights. However, PoW drained a lot of power. Therefore, the blockchain developers envisioned a Proof of Stake (PoS) hub, which features a more efficient protocol.

However, there is no real scheme of transition called consolidation. So, when switching to PoS successfully achievedIt symbolized a major victory for both Ethereum and cryptos in general. Unfortunately, it was a major victory. In terms of market valuation, Ethereum has not taken advantage of the pivot.

With the adoption of Ethereum by so many blockchain projects, the red ink of ETH could easily translate to the volatility of other cryptocurrencies.

rope (USDT)

Concept symbol for cryptocurrency Tether.

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Investors who have excess wealth attached to them Rope (USDT-USD) Their exposure should be reviewed. During raging bull markets, the speed of cryptocurrency makes well-known stablecoins like USDT one of the best cryptocurrencies to watch. However, during bear market cycles, the lack of speed makes this class of digital assets suspect.

“The main danger of stablecoins is that they… Not fully backed by reserve currencies Says Anthony Citrano, founder of Acquicent, a marketplace for non-fungible tokens (NFTs). “Ideally, a stablecoin issuer would have sufficient coin reserves (cash or other safe, highly liquid investments) to fully support the stablecoin. That is, less than 100 percent and the risk is introduced.”

In other words, when the money is flowing and the cryptocurrency is swinging upward, no one bothers to check the fine print. Emotions of the immediate moment tend to overlook some warning signs. However, in the lull, you can bet that people will start asking questions. I’m not here to say Tether is going to fall apart. But it’s not entirely out of the question, which calls for a cautionary approach.

XRP (XRP)

Concept symbol for XRP with heaps of tokens in the background.  XRP price predictions.

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Although betting on courtroom drama adds more mystery to the mix, the narrative has been fitting for speculators so far. Just look at XRP (XRP-USD), one of the best cryptocurrencies to watch. In December 2020, the US Securities and Exchange Commission imposed a fee Ripple Labs XRP generator, with Securities related violations. Basically, the regulatory agency claims that Ripple used XRP to bypass the securities laws. However, according to Feinbold, XRP gained nearly 60% in a month. the reason? Ripple has had some minor victories in the SEC-led lawsuit. Moreover, some grumbles suggest that Ripple could achieve an all-out legal victory. If so, it would give XRP legal clarity, facilitating an advantage that other cryptocurrencies do not have.

Sure enough, XRP rose by 8% over the following week. The best performing blockchain asset was among the top ten assets by market capitalization. Lately, though, XRP has been looking questionable, to put it diplomatically. Frankly, XRP needs to hold on to its gains. Otherwise, a trip back to 30 Cent is out of the question.

Excellent (XLM)

A concept icon of Stellar (XLM) on a blue gradient background.

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a Peer-to-peer decentralized networkAnd the excellent (XLM – US Dollars) launched its network in 2015. Its main objective is to “connect the world’s financial systems and ensure a protocol for payment service providers and financial institutions,” According to Bitkan.com. Furthermore, “The platform is designed to move financial resources quickly and reliably at minimal cost. Stellar connects people, banks, and payment processors and allows users to create, send, and trade multiple types of crypto.”

Interestingly, Stellar represented one of the very few cryptocurrencies that enjoyed a significant return over the following week. At the time of writing, it has gained just over 6%. Basically, the platform is interesting due to the low transaction costs involved. In the event that the blockchain becomes more integrated into global societies, the Stellar Network can facilitate microtransactions.

However, to the extent that the underlying network is practical, market viability remains the biggest concern in the near term. In the late 24 hours, XLM was looking somewhat affected. Ideally, XLM should start moving towards the 15 cent threshold. Otherwise, a trip to eight cents could be in the cards.

Quantity (QNT)

cryptocurrency on a black background

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One of the least popular cryptocurrency, Quantity (QNT-USD) is another top cryptocurrency to watch. Launched in June 2018, the Quant Network aims to “Connecting blockchain and networks on a global scalewithout reducing the efficiency and interoperability of the network,” according to Coinmarketcap.com.

Interestingly, Quandt claims to be “the first project to solve the interoperability problem by creating the first blockchain operating system.” Beyond the core range of the Quant network, QNT’s core performance also attracts intrigue.

For starters, Quant is also one of the rare cryptocurrencies that has posted positive results in the following week. QNT gained 9%, which is a solid number given the underlying conditions. When evaluating from a long-term perspective (and on a logarithmic scale), you can see that QNT has generally plotted a series of higher highs and higher lows.

Although I don’t want to exaggerate given the widespread fluctuations in cryptography, QNT should be on your radar if you’re the speculative type. Ideally, QNT should stay above the $140 level to avoid retesting the psychologically important $100 threshold.

Elrond (EGLD)

Image of a cryptocurrency index listing Bitcoin, Ethereum, Ripple, Litecoin, and Iota, overlayed on a rising line chart.  The most important cryptocurrency news.

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Finally, we will end this list of cryptocurrencies to watch Elrond (EGLD-USD). Another less-discussed coin outside of the blockchain advocacy crowd, Elrond primarily aims to offer Extremely high transaction speeds via retail. In brief terms, the hash represents a “fracture” Large tables of data into smaller piecesreferred to as cutting.

According to Coinmarketcap.com, Project Elrond describes itself as a new Internet technology ecosystem, which includes financial technology, decentralized finance, and the Internet of Things. Reportedly, its smart contract implementation platform is capable of 15,000 transactions per second, has a latency of six seconds, and has a transaction cost of $0.001.”

Over the next week, EGLD gained 6%, outperforming most other cryptocurrencies in terms of market performance. In a broader context, EGLD is somewhat encouraging in that its price point has been relatively stable since June of this year. Whether he can maintain this path will be key.

Personally, I don’t see it getting out of its range anytime soon, which means a drop to $20. Therefore, you should put EGLD on your radar, although caution is still important.

Posted by Josh Enomoto He held a long position in BTC, ETH, USDT, XRP and XLM. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com Posting Guidelines.

Josh Enomoto, former chief business analyst for Sony Electronics, has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has provided unique and critical insights into the investment markets, as well as many other industries including law, construction management, and healthcare .

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