Bitcoin continues its consolidation action. Cryptocurrency prices continue to show a bearish trajectory as the market awaits key PCE inflation data, which will be released on Friday. In particular, personal consumption expenditure, or PCE, is the Federal Reserve’s preferred inflation measure, even more so than the much-hyped CPI.
Due to market uncertainty, traders continue to invest in new meme coins. Tokens like Dogeverse and Sealana not only show promising potential, but also have no major correlation with market sentiment.
Why are cryptocurrency prices falling?
Macroeconomic risks continue to spook the cryptocurrency market as concerns over inflation levels and high interest rates remain an obstacle to a sustainable bull rally.
For example, after another day of weak debt auctions on Wednesday, yields on 10-year U.S. Treasury bonds rose to 4.623%, rising 30 basis points in just two weeks. U.S. 2- to 30-year yields showed a similar rebound, signaling growing macroeconomic concerns.
Top Fed officials are also taking an aggressive stance, with Minnesota Fed President Neel Kashkari saying “many more months of positive inflation data” are needed to begin easing. He also suggested further interest rate hikes, a decidedly dire scenario for large-cap altcoins.
As a result, CME FedWatch is no longer in favor of an interest rate cut in September, stressing that there is a 45% probability of such a move.
All eyes are now on the upcoming personal consumption expenditure data. As previously mentioned, the PCE is the Fed’s preferred measure of inflation. In the bearish scenario where the PCE fails to meet market expectations tomorrow, a larger collapse in cryptocurrency prices could follow.
Key Support Levels for Bitcoin and Ethereum
Growing macroeconomic risks have put a strain on the cryptocurrency rally.
Instead of attempting to breach the $68,000 and $72,000 resistance levels, the bulls now need to defend the crucial region between $66,000 and $67,000. Incorrect PCE data could cause BTC to miss this important support, which could trigger a downside move to $60,000.
Meanwhile, altcoins desperately need Ethereum to remain strong against Bitcoin. The ETH/BTC pair must hold above the 0.051 level or face more selling pressure on altcoins.
Cryptocurrency prices are also hoping that skyrocketing US Treasury yields will cool in June, without which a broader altcoin rally is out of the question.
The new meme coins are in high demand
The new meme coins have no correlation with the market, which makes them an excellent investment opportunity in uncertain macroeconomic conditions. For example, the multi-chain meme coin Dogeverse is currently trending and its IEO is approaching.
The Dogeverse presale raised over $15 million, signaling the meme coin’s promising price potential following its launch. The ICO will end on June 3rd and this also contributes to the FOMO.
Dogeverse will be the first meme coin to launch on 6 different blockchains, including Ethereum, Solana, Base, Avalanche, Polygon and BNB Smart Chain.
Experts believe that this multi-chain strategy could prove to be a game-changer for meme coin awareness. After all, Dogeverse will attract the attention of all investors looking for the best Solana meme coins or the best Base meme coins.
As a result, investors believe that Dogeverse could potentially deliver up to 1000x returns after its launch. Likewise, a new Solana meme coin – Sealana ($SEAL) – is attracting interest during its pre-sale, raising over $3 million in the first few weeks.
The meme coin is on investors’ radar. Top cryptocurrency influencers have gone so far as to call Sealana the next potential 100x meme coin.
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