Crypto Prices Plummet As Recession Alarms Go Off, Are Whales Still Bullish?

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Rektember is in full force. 

Crypto prices saw a heavy correction on Friday after the weak August jobs report sparked recessionary concerns in the US economy. 

The Bitcoin price fell to $52,700 before a marginal bounce back, with concerns mounting that the largest cryptocurrency could plummet to sub-$50k levels. 

However, smart money investors believe that the bull market is far from over and the current correction could be one last pull-back before new all-time highs. 

Indeed, they are still bullish on Bitcoin, Solana, Dogwifhat and new meme coins like Pepe Unchained. 

Weak US Jobs Report Spark Recession Concerns, Crypto Prices Fall

The US jobs report has missed expectations for a second straight month. The Nonfarm Payrolls for August came out at 142,000, substantially lower than the expected 164,000. 

The already weak July NFP data was also revised down to 89,000, making it the worst monthly job report since 2020. 

The private NFP and manufacturing payroll data also missed expectations, sparking concerns that the US economy could be headed to a recession. 

Even Federal Reserve officials sounded pessimistic in their overview of the economy. For instance, Chicago Fed CEO Austan Goolsbee believes that the odds of a recession might be rising. 

Unsurprisingly, the global crypto market cap is down by nearly 5%, data from CoinMarketCap reveals. 

Why The Whales Are Still Bullish on Crypto?

Whales believe that the crypto bull market isn’t over, only postponed. 

While the soft NFP may have resulted in a sharp decline in crypto prices, it has also substantially increased the odds of a 50 bps rate cut in September, a decidedly bullish scenario for the market. 

Indeed, Jesse Cohen of Investing.com is calling a 50 bps quantitative easing “a near certainty”. Meanwhile, the CME FedWatch is showing a 31% probability of the same. 

Moreover, there is growing evidence that the US economy may not be headed to a recession after all, at least not in the short term. 

For instance, the bears have pointed towards the 10-year/2-year US Yield Curve inversion as a major recessionary signal. However, popular analyst Game of Trades (@GameofTrades_) signals to the Yield Curve forming a Whipsaw Signal, which typically results in a blow-off top rally in the financial markets. 

Best Crypto To Buy Now?

Indeed, smart money investors are already gearing up for a blow-off top rally. 

For instance, Elja (@Eljaboom) believes that the current correction in crypto prices is the final pullback before new all-time highs for Bitcoin. He expects BTC to peak at $165,000 in the coming months. 

Solana also appears poised for a bull rally in the short term. Crypto analyst Ali Martinez (@ali_charts) highlights that the TD Sequential Indicator has flashed a “buy” signal for SOL, which could spark a rally to $187. 

Considering that the top Solana meme coin Dogwifhat acts as a beta play on SOL, it is also poised for a bullish reversal. 

Whales are also buying new meme coins, with one investing $55k into Pepe Unchained (PEPU). He is also not the only one, considering PEPU has raised over $12 million in its presale funding. 

Pepe Unchained is one of the rare meme coins with its own blockchain, making it one of the best crypto to buy right now. PEPU holders can benefit from low transaction fees, fast trades and high staking rewards. 

Owing to its unique value proposition, some analysts are even calling Pepe Unchained the next 100x crypto. 

Visit Pepe Unchained Presale

Source: https://finbold.com/crypto-prices-plummet-as-recession-alarms-go-off-are-whales-still-bullish/