5 Crypto to Sell to Avoid Losses After Fed’s 50 bps Interest Rate Cut

by

As a seasoned crypto investor with a decade of experience navigating the rollercoaster ride that is the cryptocurrency market, I have learned to read between the lines and anticipate the trends before they become mainstream. With the Fed’s recent rate cut, I can sense an impending bull run, but it’s crucial to tread carefully in this dynamic market.

In light of the U.S. Federal Reserve reducing interest rates by 0.5% on September 18, there’s a growing expectation that the crypto market will experience a rise. Interestingly, some leading altcoins have already seen significant gains ahead of the rate reduction announcement. With this in mind, potential investors might want to consider offloading these five cryptocurrencies to minimize potential losses.

5 Crypto to Sell to Avoid Losses After Fed’s 50 bps Interest Rate Cut

5 Crypto to Sell After Fed’s 50 bps Interest Rate Cut

After the FOMC meeting on September 18, these five digital currencies are showing signs of a potential sell-off. It might be wise for investors to consider selling these coins at present to minimize potential losses.

    Render (RENDER)
    Polygon Ecosystem Token (POL)
    Uniswap (UNI)
    Optimism (OP)
    BabyDogeCoin (BABYDOGE)

Render

Since September 6, Render price surged nearly 20%. This uptrend was a common theme across altcoins due to the anticipation of the Fed’s interest rate decision on September 18. As of September 19, Santiment data shows that the daily active addresses for RENDER dropped by 66% after noting a peak on September 13. 

It’s probable that this cryptocurrency will experience a drop in value following the Federal Reserve’s rate cut, as well as once the excitement around OpenAI’s new model subsides.

5 Crypto to Sell to Avoid Losses After Fed’s 50 bps Interest Rate Cut

Polygon

Recently, Polygon’s transition from MATIC to POL and rebranding drew a great deal of attention, but it appears that the initial excitement has subsided, so potential investors should remain vigilant regarding POL. After the rebrand, there has been a significant increase in supply available on exchanges, while major holders have continued to sell. This trend suggests decreased interest from large investors (whales) and may indicate a potential price correction for MATIC.

5 Crypto to Sell to Avoid Losses After Fed’s 50 bps Interest Rate Cut

Uniswap

After the Fed’s 50 basis point cut, the third cryptocurrency to consider selling is Uniswap. Although there’s talk of a possible fee switch proposal during the v4 update, it’s advisable for investors not to hold onto UNI for one key reason: complete unlock. Since all tokens are already in circulation, there could be significant selling pressure on this cryptocurrency, potentially affecting the short-term price trend of Uniswap.

Optimism

Initially, Optimism was known as one of the leading Ethereum Layer 2 scaling methods, but by 2024, it had stepped out of the limelight. The user base for Optimism has remained approximately 500, marking a significant drop from its peak of 2500, representing a fivefold decrease.

The network growth metric is used to gauge new users joining the Optimism blockchain. A spike in this indicator shows that new capital is flowing in and investors are interested in the underlying token at the current price levels. However, for OP this is the complete opposite, since the network growth is dropping. As a result of this, OP could see a further spike in selling pressure going forward. 

5 Crypto to Sell to Avoid Losses After Fed’s 50 bps Interest Rate Cut

BabyDogeCoin 

Following its successful debut on Binance, I’ve noticed an impressive 130% surge in the value of this leading meme coin. While historical data suggests that rallies driven by exchange listings can be temporary and may result in a complete reversal, BABYDOGE appears to be bucking this trend with its robust performance. However, it’s crucial for investors to remain vigilant as any signs of weakness should be closely monitored. If the buying pressure were to wane significantly, there’s a possibility that the price could dip nearly 40% down to a key support level at $0.00000000132.

5 Crypto to Sell to Avoid Losses After Fed’s 50 bps Interest Rate Cut

“It’s worth considering that five specific cryptocurrencies might witness a significant turnaround as they are exhibiting sell signals. This change could be further intensified by the Federal Reserve’s decision to lower interest rates on September 18. As a result, it may be prudent for investors to think about offloading these alternative coins to minimize potential losses.

Read More

2024-09-19 17:36