Cryptocurrency markets are currently experiencing a stagnant phase, with most altcoins showing no significant movement. The market did not react much to the July personal consumption expenditures (PCE) data released yesterday. Especially, the July inflation data showed that the price increase continued to slow down in line with the Federal Reserve’s 2% target. This situation suggests a possibility of interest rate cuts in September.
Avoid These 3 Cryptocurrencies
Despite the potential for interest rate cuts, risky assets like cryptocurrencies remain stagnant. Bitcoin (BTC) continues to consolidate below the $60,000 resistance level. While the current situation might present an investment opportunity, there are cryptocurrencies that investors should avoid trading due to the potential for increased volatility next week. The first of these is Immutable.
The cryptocurrency Immutable (IMX) has shown resistance recently, increasing by about 8% over the past month despite overall market fluctuations. However, an upcoming token unlock on September 6, 2024, will release 32.47 million IMX into the market. These tokens represent 2.06% of the cryptocurrency’s market value, approximately worth $47.23 million. Although technical indicators mostly show bullish signals for IMX, the increased supply due to the unlock could change sentiment and trigger new volatility.
Beware of HFT and SUI
Altcoin Hashflow (HFT) faces a similar situation. A token unlock will occur on September 7, 2024. The market will see the release of 15.83 million HFT tokens. This release, representing 4.33% of the current market value, is worth approximately $2.27 million. Historically, tokens with significant unlocks like HFT typically experience increased selling pressure. At the time of writing, Hashflow was trading at $0.14 and had dropped more than 23% in the past month.
The cryptocurrency Sui (SUI) faces a token unlock on September 3, 2024. The unlock will release 83.88 million SUI into the market. This release, representing 3.23% of the current market value, will be worth approximately $67.97 million. At the time of writing, SUI was trading at $0.81.
