Cryptocurrency markets are currently experiencing a stagnant phase, with most altcoins not showing significant movement. The market did not react much to the July personal consumption expenditures (PCE) data released yesterday. Specifically, the July inflation data showed that the price increase continued to slow in line with the Federal Reserve’s 2% target. This situation creates a possibility for 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 may present an investment opportunity, there are cryptocurrencies that investors should avoid trading next week due to the potential for increased volatility. 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, with an upcoming token unlock on September 6, 2024, 32.47 million IMX will be released into the market. These tokens represent 2.06% of the cryptocurrency’s market value, equivalent to approximately $47.23 million. While technical indicators mostly show bullish signals for IMX, the increased supply from the unlock could change market sentiment and trigger new volatility.
Be Cautious with HFT and SUI
Altcoin Hashflow (HFT) faces a similar situation. A token unlock is scheduled for September 7, 2024. 15.83 million HFT tokens will be released into the market. This release, representing 4.33% of the current market value, is worth approximately $2.27 million. Historically, tokens with significant unlocks like HFT usually experience increased selling pressure. At the time of writing, Hashflow was trading at $0.14 and had dropped more than 23% over the past month.
The cryptocurrency Sui (SUI) will face a token unlock on September 3, 2024. With the unlock, 83.88 million SUI will be released 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.
