The global equities market is in a state of utter confusion. The US stock market suffered a substantial decline today as fears of an upcoming recession spooked investors.
However, the gold price also fell, contrary to what is expected during a recession.
Unsurprisingly, the crypto market is also in a broad-based decline, with Bitcoin price falling 4% to trade as low as $62,500.
However, experts believe that crypto prices could see a significant bounce back, considering that the odds of a 50 bps rate cut in September have skyrocketed. In such a scenario, meme coins and AI coins could deliver outsized returns.
Even new meme coins such as WienerAI could show impressive growth.
Will Crypto Prices Bounce Back?
The July jobs report turned out to be the weakest since January 2021, with the US economy adding only 114,000 jobs, significantly below the expected 176,000 figure.
Meanwhile, the US unemployment rate rose from 4.1% to 4.3%, the worst since October 2021.
Quite simply, the US economy is now on the verge of a recession, with several economic indicators signalling the same. For instance, the Sahm Rule is now indicating a recession, as does the Piper Sandler indicator.
The stock market typically faces significant correction during a recession. Consequently, crypto prices – which show a strong correlation with equities – could also see a massive decline.
However, experts believe that global equities could see a “blow off top” before the recession, primarily due to the Federal Reserve’s interest rate cuts.
Indeed, the CME FedWatch tool is now showing a higher likelihood of a 50 bps rate cut in September than the previously expected 25 bps.
Furthermore, it is also now showing 3 to 4 rate cuts in 2024.
While Bitcoin does show a strong correlation with equities, experts believe that it responds mostly to rate cuts and global liquidity. Consequently, crypto prices – led by BTC and ETH – could see a major bounce back in the coming months.
Best Crypto To Buy Now?
Crypto prices are expected to show significant bullish strength in the coming weeks. Consequently, smart money investors are treating the current market crash as an opportunity to buy the dip.
For instance, Ethereum meme coins such as Pepe and Floki could deliver outsized returns. The bullish impact of recently launched spot ETH ETFs is yet to be priced in by Ethereum. Considering that Pepe and Floki show a strong correlation with ETH, they may emerge as the top-performing large-cap cryptocurrencies.
AI coins such as NEAR, The Graph and Worldcoin have also been leading the bull market rally in this cycle. There is no reason why this phenomenon could not be repeated in the coming weeks.
The upside potential of new meme coins cannot be underestimated as well. As such, low-cap gems typically see the most growth during high-liquidity market conditions, which would be the case once the Fed starts cutting its interest rates aggressively.
Unsurprisingly, smart money investors have been quick to invest in new presale tokens such as WienerAI (WAI), which has raised over $9 million during its ICO. WAI will go live on Monday, potentially right when crypto prices start to bounce back.
As such, WienerAI is a high-utility meme coin. For instance, its upcoming AI-enabled Trading Bot has caught the attention of several deep-pocketed investors. The bot is being portrayed as the ChatGPT of crypto, which can offer investment strategies, MEV protection and seamless swaps.
Additionally, WAI buyers can earn attractive passive income by staking their holdings.
Owing to its unique value proposition, experts believe that WienerAI could potentially offer up to 100x returns after its launch.
