It was a slightly bearish day for most major cryptocurrencies early this morning, with Bitcoin (BTC) down 1.5% to the low $67,000s and Ethereum (ETH) down 2.5% to the mid-$3,700s, and traders seeking the best cryptocurrencies are looking for outperformers in the altcoin market.
Billions of dollars in Bitcoin moved between wallets associated with Mt Gox, undermining a strong start to the week. Both Bitcoin and Ethereum are currently down 4-6% from their earlier weekly highs. But any declines are likely to be only minor and short-lived. That’s because there has been a lot of good news in the cryptocurrency market recently. The U.S. Securities and Exchange Commission (SEC) has softened its anti-crypto stance and recently approved a spot Ethereum ETF. There has been increasing pro-crypto rhetoric from U.S. presidential candidate Trump and growing support in Congress for constructive cryptocurrency legislation.
There could also be macroeconomic tailwinds, assuming this Friday’s U.S. inflation data points to a sustained decline in inflation, which would support expectations of a rate cut by the Federal Reserve. As the market moves lower, traders are looking for cryptocurrencies that could offer quick gains.