Investors cannot prepare for a black swan event. The black swan market is an unpredictable crash event with extremely negative consequences. According to the latest data, investors should expect the extremely negative black swan market. This market is more likely than ever to come. Because, as it is known, the US economy is on the verge of recession. So what should altcoin investors do before the black swan thing happens?
3 altcoins to buy in the black swan market
Economists debate whether we are currently in a recession after GDP contracted for two consecutive quarters. Inflation reached 8.5% in July. While this marks an improvement from June’s 9.1%, it is far from stable. Credit card debt is rising in ways not seen for decades. So we really have to think about a black swan event that crashes the stock market.
As time passes, crypto prices are more in line with stocks. However, if that happens, the cryptocurrency is likely to survive relatively unscathed. In fact, it has the potential to make these cryptos more attractive. Considering all this, an analyst shared 3 altcoin projects that he recommended to be bought in the black swan market. We, as Kriptokoin.com, have compiled its list for you.
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Solana (SOL) remains a strong network after becoming popular last year. Which cryptocurrencies could survive a black swan event that crashed the stock market is purely conjecture. But it makes sense for investors to look for projects with a lot of overall strength and strong prospects. This accurately describes Solana, a project notable for its massive growth in 2021.
The altcoin was at $1.80 at the beginning of 2021 but rose to $170 by the end of the year. The massive 9,360% increase definitely made a lot of people a lot of money very quickly. But more importantly, it kept the SOL ahead even in the cryptocurrency crash of 2022. It is currently trading as low as $38. However, it seems that the crypto money will not be wiped out of the market unless it experiences a planned and major collapse like Terra.
Ethereum (ETH)
Ethereum (ETH) is the most valuable altcoin project with a market cap of $229.4 billion. So it’s likely to do well if an exchange crashes the black swan event. When traditional markets crash, the cryptocurrency market will emerge as a bulwark against real chaos. Investors have seen crypto prices fall as well as stock prices this year. Therefore, they may be considering this idea.
However, the analyst hints that the crypto will leave the stock market during the crash. This means that Ethereum should see massive capital inflows given its size and location. Also, the altcoin plans to migrate from a PoW network to a PoS network. The Merge upgrade, set to take place on September 15, raises bullish expectations.
Dogecoin (DOGE)
Investors may consider buying Dogecoin (DOGE) in anticipation of a black swan event for slightly different reasons than Solana or Ethereum. Dogecoin is clearly on the speculative side of crypto assets. So, Solana and Ethereum are much more established and secure in the market. The rationale for buying DOGE depends on the traditional market failing.
A stock market crash is likely to trigger a resurgence in interest in decentralized markets. Speculative capital will flow into Dogecoin as it is a safe asset among cheap crypto assets. It is not hard to imagine that speculative market makers would quickly pump capital into Dogecoin in such a scenario. The altcoin project’s 10X move in early 2021 makes it inherently attractive to speculative investors.
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