Blue-chip cryptocurrencies took a beating on Friday after much softer-than-expected US jobs data triggered recession fear-related risk-off across risk assets, with investors not hunting for the top crypto to invest in today to take advantage of the latest market dip.
UNEMPLOYMENT RISING
New Jobs report came in worse than expected, showing that unemployment is rising
US Unemployment Rate Actual 4.3% (Forecast 4.1%, Previous 4.1%)
US Nonfarm Payrolls Actual 114k (Forecast 175k, Previous 206k)
US Manufacturing Payrolls Actual 1k (Forecast… pic.twitter.com/5j3C9UYDBf
— Danish (@operationdanish) August 2, 2024
Bitcoin (BTC) dumped over 5% to test its 200DMA in the mid-$61,000s.
BTC’s dip below its 200DMA in early July didn’t last long, leading some investors to ask whether history might repeat itself.
It’s true that the 200DMA is a strong and important support (or resistance) level for Bitcoin.
But whereas macro was a tailwind for most of July, August could be an ugly month in risk assets like stocks and crypto.
The latest week US jobs figures have triggered fears that the Fed made a mistake earlier in the week when they held interest rates steady.
Investors fear that the Fed may have left interest rates too high for too long.
Indeed, the latest jobs data triggered the famous Sahm recession warning.
Sahm Rule Recession Indicator jumped to 0.53 from 0.43 following weak US jobs data, triggering a recession warning. The Sahm rule is a formula used to identify the start of a recession based on the unemployment rate. It triggers a recession warning when the 3mth moving avg of… pic.twitter.com/9b3CHEoIrR
— Holger Zschaepitz (@Schuldensuehner) August 2, 2024
Recessions cause a lot of uncertainty about corporate profitability, forcing investors from riskier assets into “safer” ones.
So Bitcoin may have some distance to go to the downside.
Could Bitcoin Still Be the Top Crypto to Invest in Today?
That said, a recession would probably mean a lot of interest rate cuts from the Fed.
In fact, macro traders drastically upped their bets that the Fed cuts interest rates by 50bps in September to over 70%, per CME data.
Easing financial conditions would eventually be a tailwind for Bitcoin.
Politics remains an uncertainty – VP Kamala Harris is catching Trump in the polls for November’s Presidential election.
Kamala Harris' election odds just hit a new all-time high. pic.twitter.com/its4N1BHzf
— Polymarket (@Polymarket) August 1, 2024
Given Trump has come out as ardently pro-crypto, and Harris is associated with the anti-crypto policies of the Biden administration, this is also likely weighing on markets.
But a growing throng of Democrats are pushing for a more pro-crypto stance within the party.
The era of anti-crypto policy could well already be over.
Easing financial conditions, political tailwinds and the lagging positive impact of the halving could all still lift Bitcoin to new record highs later this year or next.
Investors should also note that Bitcoin remains the oldest, most trusted, most secure and most decentralized of all existing cryptos. And that isn’t likely to change any time soon.
Bitcoin remains a strong candidate for top crypto to invest in today.
But for investors who already own Bitcoin, are there any other cryptos they should check out.
Solana (SOL)
Solana (SOL) is one of the leading smart-contract-enabled blockchain protocols and has been a huge narrative in the last year.
Its eye-catching pump from 2023 lows around $13 to 2024 highs above $200 was driven by a surge in adoption.
Namely, Solana has become the main home of meme coin trading and is a major market leader.
Last at $152.50, SOL probing its 50 and 200DMAs in the $145-152 area.
It already bounced from a test of its 200DMA earlier in the year. And history could be about to repeat.
Even if SOL does fall further, it remains well within its recent $120-200ish range.
Investors should consider continuing to dollar-cost-average into Solana (SOL) whilst it consolidates below earlier yearly highs.
It remains one of the top cryptos to invest in today.
Near Protocol (NEAR)
Those looking for quick gains might want to check out Near Protocol (NEAR), which is currently testing key resistance at $4.60.
This has been a key resistance-turned-support zone going back to late 2023.
A quick 2x rebound back to yearly highs near $9 could be on the cards.
That said, if NEAR breaks below this key support zone, a 50% drop back to the next support area in the mid $2.0s is possible.
So investors must be cautious, they may get caught out.
The post Top Crypto to Invest In Today August 2 – Bitcoin (BTC), Solana (SOL), Near Protocol (NEAR) appeared first on Cryptonews.