2023-12-30 10:52

Cryptocurrencies, stocks, and commodities retreated on Friday as most investors closed their books for the year. The Dow Jones and Nasdaq 100 indices retreated by over 30 basis points while gold, silver, and copper fell by at least 0.50%. Similarly, Bitcoin retreated to $42,000 while coins like Ethereum, Solana, and Dogecoin fell by over 3%.

This retreat is usually expected since Friday was the last trading day of the year for stocks and cryptocurrencies. As a result, there was some selling pressure as investors closed their books in preparation for the start of 2024 next week.

The January Effect is coming

Still, there is a likelihood that cryptocurrencies and other assets will bounce back in January. This will happen because of a situation known as the January Effect, where assets tend to rally at the start of the year.

We saw that effect work well in January 2023. In that period, Solana jumped from about $1.50 and peaked to a high of $8. Similarly, Bitcoin rose from about $16,000 to a high of over $24,000 in the start of February. These rallies set the stage for the strong performance during the year.

The same performance happened in the stock market. For example, the tech-heavy Nasdaq 100 index jumped from $10,673 on January 2nd to $12,886 at the end of the month. The blue-chip Dow Jones index rose from $32,497 to $34,388 in the same period.

This performance has worked well over the years and 2024 will likely follow the same trend. Besides, there are numerous catalysts for a major jump in global assets in this period. For one, inflation has dropped sharply in most countries like in the United States and Europe. As a result, most economists expect the Federal Reserve to deliver several rate cuts in 2024.

Rate cuts will likely see investors pushing their funds to riskier assets like stocks and cryptocurrencies. In the past two years, funds have moved their dry powder to less riskier assets like short-term government bonds.

There are other potential catalysts for cryptocurrencies as we start 2024. The SEC is expected to approve a spot bitcoin ETF while halving is just four months away.

Memeinator will benefit

These tailwinds will likely benefit Memeinator, one of the several upcoming meme coins in the market. The token aims to take advantage of the ongoing crypto rally as it prepares to go public soon.

Its creators have already raised over $2.7 million from global investors. According to its website, Memeinator has now moved to stage 10 and is expected to continue to stage 20. The price of the MMTR token increases in every stage and you can buy the token here.

For starters, while Bitcoin and other big tokens did well in 2023, meme coins like Bonk and Pepe did much better. Bonk price surged by more than 1,265%. Pepe soared by over 350%. As a result, these tokens created several millionaires.

Still, investing in presales carries risks. Therefore, you should always use proper risk management strategies when allocating funds to the MMTR token. For example, you should only invest in funds that you can afford to lose. You should also diversify your crypto holdings.

The post The January Effect is coming and Memeinator (MMTR) could benefit appeared first on Invezz

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