Kryptanium Capital CIO Daniel Yan Eyes AI, Solana, Memes for May’s Top Crypto Trades

full version at beincrypto

Amid the turbulence that rocked cryptocurrency markets in April, Daniel Yan, the Chief Investment Officer of Kryptanium Capital, has a clear vision for May’s trading strategies.

He focuses on artificial intelligence (AI), Solana, and meme coins as potential leaders for a rebound.

AI, Solana, Memes to Lead May Catchup Trade

A blend of macroeconomic triggers and market dynamics marked April’s crypto crash. The US’s persistent inflation and hot labor market led to a significant selloff in US treasuries, impacting cryptocurrencies that are sensitive to such macroeconomic factors. Additionally, the behavior of the spot Bitcoin ETFs, which, contrary to expectations, acted more as a trading instrument than a stable investment, contributed to April’s downturn.

Altcoins suffered acutely due to poor liquidity and heavy unlocking schedules, leading to a dramatic drop not seen since the tumultuous events of 2022.

“The medium performer of the top 100 tokens on CoinMarketCap in April saw a decline of 33%, compared with a milder 15.5% dip for Bitcoin and Ethereum,” Yan explained.

Altcoins Market Cap. Source: TradingView

However, after a series of positive macroeconomic updates, Yan sees a silver lining. The introduction of the US Treasury Department’s first bond buyback program since 2002 and a dovish statement from the Federal Open Market Committee have helped stabilize the crypto market. These factors contributed to Bitcoin’s over 10% rebound in just a few days.

Looking into May, Yan predicts it to be a “very macro month for crypto.” He expects market stability until the mid-month Consumer Price Index report, likely influencing market direction. Specifically, Yan is bullish on categories like Solana, AI-driven coins, and meme tokens.

“Solana category, AI category and Memes category are my top picks for the catchup trade – they should outperform Bitcoin in May. In general, I don’t think the theses for a very bullish 2024 is challenged at all. However, the April crash is a great lesson to all market players,” Yan asserted.

Despite April’s challenges, Yan remains optimistic about the long-term prospects of cryptos, viewing the recent crash as a crucial lesson for market participants.