Crypto Prices Crash Despite Dovish FOMC - Best Crypto To Buy The Dip?
Crypto prices saw a broad-based decline today on Thursday, with Bitcoin trading as low as $63,300.
This is despite Fed Chair Jerome Powell adopting a dovish stance after Wednesday’s FOMC, indicating that interest rate cuts could come as early as September.
Despite the weakness in large-cap cryptocurrencies, low-cap meme coins such as Base Dawgz continue to show strength in their respective presales. Experts are even calling DAWGZ one of the best crypto to buy after today’s dip.
Why Did Crypto Prices Crash Today Despite A Dovish FOMC?
Federal Reserve Chairman Jerome Powell adopted an extremely bullish stance yesterday on Wednesday.
While the Federal Reserve kept interest rates unchanged, Powell indicated that the central bank is open to rate cuts in September. The CME FedWatch is currently showing a 100% probability of atleast 25 bps rate cut in September.
However, the risk of an all-out war in Middle East has overshadowed the bullish FOMC.
The assassination of Hamas leader Ismail Haniyeh has added to the geopolitical turmoil, with Iran threatenting to launch an offensive against Israel. Yemen, Turkiye and Qatar could also join against Israel, while the United States continues to back the latter.
The US has even sent 12 warships to the Middle East.
BREAKING:The United States deployed 12 warships in the Middle East. pic.twitter.com/Puy93kQE5E
— Globe Eye News (@GlobeEyeNews) July 31, 2024
Unsurprisingly, the geopolitical risks have taken a toll on equities and crypto prices. However, some experts are still bullish on crypto, treating today’s crash as an opportunity to buy the dip.
Indeed, crypto prices strongly bounced back in May after correcting in April due to flaring tensions in the Middle East. There is no reason why this phenomenon could not repeat in August.
Furthermore, the upcoming interest rate cut in September is yet to be priced in, which will also provide a major boost to Bitcoin and other large-cap altcoins.
The BTC price is already showing some resilience, rallying by nearly 2% from today’s low of $63,300. It is trading at $64,700 at press time, above the crucial 100-day Simple Moving Average.
A daily close above $64k could invalidate most bearish scenarios.
Best Crypto To Buy The Dip
Smart money investors are treating today’s crypto crash as an opportunity to buy the dip. For instance, experts believe that Ethereum could show significant strength in August, owing to the bullish impact of spot ETH ETFs.
Considering that Ethereum meme coins also show a strong correlation with ETH, Pepe and Floki are also excellent buys after today’s depreciation.
Experts are not underestimating new ERC-20 meme coins either. As such, they show little correlation with the broader crypto market and can offer outsized returns, owing to their low market-cap.
For instance, Base Dawgz has raised nearly $2.8 million in its ICO, thanks to its multi-chain status and innovative concepts such as share-to-earn and staking rewards.
Despite its multi-chain status, DAWGZ is native to Base. As such, Base meme coins are highly undervalued and in high demand. Brett is the only meme coin with a market cap of over $100 million on Base.
However, analysts believe that Base Dawgz could be the next big meme coin on Base, following in the footsteps of Brett. It will also go live on Ethereum, Solana, Avalanche and BNB Smart Chain and is already offering attractive staking rewards on all chains except Solana, which is currently in the works.
Others have called it one of the best crypto to buy now.
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