After an incredibly bullish Labor Day weekend, the infamous crypto market volatility reared its ugly head. The price of Bitcoin ($BTC) fell from $51,000 to below $43,000 in a matter of hours on Tuesday morning, triggering a correction of more than 10% across the market at large.
Overzealous leverage likely contributed to this flash crash.
However, for more measured investors, the recent correction represents an ideal buying opportunity.
By zooming out and looking at longer-term trends around consumer adoption, the bullish case for crypto in general remains clear.
By focusing on crypto trading Mentions, we can see that the number of individual investors talking about trading cryptocurrencies may be down recently, -36% quarter-over-quarter, but remains up +361% year-over-year.
As the price begins to rise across the board, we’re looking for opportunities to buy low and names showing unusual strength, especially in coins that are showing high levels of continued consumer and investor adoption.
Bitcoin Remains an Investor Favorite
The stubborn fact remains: Bitcoin and investment demand for Bitcoin aren’t going anywhere, as evidenced by the trajectory of underlying Purchase Intent Mentions.
We made a similar bullish argument when Bitcoin was trading below $30,000 earlier this year, and our outlook remains unchanged.
Speculation-driven fluctuations aside, there’s an increasing number of institutions, businesses, and now countries throwing in their lot with Bitcoin.
Filecoin Emerging as Promising Technology and Altcoin
There’s another recent gainer that’s gotten our attention as of late: Filecoin ($FIL).
This unique blockchain boasts the same core functionality as existing cloud storage systems such as Amazon Web Services (AWS), combined with the data integrity and privacy benefits of a decentralized network.
The trend seen in the Mention chart above mirrors that of FIL’s price, which rose more than +400% in March before correcting roughly -60% in the following months.
FIL isn’t the most “meme-worthy” coin, and it has relatively low total Mention volumes.
Still, it’s hard not to be optimistic about Filecoin’s experienced team and compelling use case.
Dogecoin Could Get Left Behind
As the popular “meme” cryptocurrency, what Dogecoin ($DOGE) lacks in terms of a clear use case it makes up for with mainstream appeal…
DOGE still maintains the No. 8 rank in terms of market cap, with more than $33 billion invested, and has gained by an impressive +2,650% YTD.
In recent months, its performance has fallen behind many other Top 10 standouts such as Cardano ($ADA) and Solana ($SOL), both of which are desirable due to their functionality.
As always, LikeFolio members will be the first to know when we spot unique opportunities to benefit from the powerful trends our software highlights. In fact, we’re working on one such opportunity right now, and will likely be issuing a bullish report in the coming week!