5 Cryptos To Watch As The Fed Fights Inflation - Our Picks
With the regulations tightening, these are our top picks of cryptos to watch closely as the Fed fights inflation.
Bitcoin - Often touted as a hedge against inflation
Ethereum - The backbone of Web 3.0 and a must-buy now
Polygon - One of the top full-fledged cryptocurrencies with a hedge against inflation
Toncoin - A crypto with a strong-looking uptrend
Dogecoin - Expected to stay the best meme coin in the future
A Closer Look At 5 Cryptos To Watch As The Fed Fights Inflation
Earlier this year, in September, volatility again hit the crypto market hard as the Fed raised interest rates by 75 basis points. Inflation is often characterized by currencies losing value and a significant increase in the price of consumer goods. It’s clear that the Federal Reserve's efforts to battle inflation by raising interest rates and killing demand are adversely affecting the crypto investment sphere.
Although cryptocurrencies are not yet proven to be inflation-proof, there are a few cryptos that are worth watching as they have the potential to fight inflation. So let’s see how these 5 crypto assets can keep up with and surpass inflation.
Bitcoin (BTC)
The price of BTC has dropped drastically following the Federal Reserve’s announcement that it would hike interest rates. As a result, the oldest and largest crypto by market cap fell below the $19K mark. The crypto’s price is still hovering at a low price of $17K. But investors predict that Bitcoin is still a crypto to watch closely as the Fed fights inflation, and this could also open a buying opportunity for several investors.
As more institutional investors come to view cryptocurrency as a legitimate asset class, BTC becomes their ideal choice as the biggest and most accessible digital asset, driving its adoption.
So to answer the question of whether BTC is a good hedge against inflation, we could say that rather than inflation-proof, Bitcoin could be considered as more of an “inflation-resistant” asset. Bitcoin’s limited and fixed supply is also an advantage. This would create more scarcity as new coins cannot enter circulation, increasing BTC’s value and eliminating the risk of inflation.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Ethereum (ETH)
Like any other cryptocurrencies, Ethereum has proven to be an extremely volatile and potential investment option for investors. However, even ETH didn't do much better after the Fed’s policy decision. The crypto has proven to be a leader in smart contracts and virtual machines, hosting numerous applications, including DeFi, NFT, and Metaverse projects.
Although 2022 was not a great year for it, the asset has never really gotten this much attention, thanks to the launch of its long-awaited update, The Merge. The transition to an energy-efficient Proof-of-Stake network has made it faster, more scalable, and more sustainable. On top of that, the team has announced that Ethereum’s circulating supply is expected to become deflationary in the coming years, making ETH one of the best cryptos to watch as the Fed fights inflation.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Polygon (MATIC)
Polygon is one of the most popular Layer-2 scaling platforms on the Ethereum network that provides developers with an easy-to-use platform for developing dApps. Currently, there is rising enthusiasm for Polygon’s network expansion, as the project has boosted its partnership portfolio. The crypto already has big names on its list, like Disney, Starbucks, and Robinhood.
Moreover, its native token, MATIC, saw a significant price rise earlier this year, fuelled by reports of whales entering the layer-2 protocol. Considering the utility of the Polygon network, it has the potential to move forward and see increased adoption rates. Investors should definitely keep an eye on this crypto.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Toncoin (TON)
Toncoin is a unique decentralized blockchain network designed by Telegram. The platform boasts ultra-fast throughput speed, low fees, and several user-friendly applications. In addition, its flexible architecture helps the network grow and include updates without compromising performance and security.
The utility token of the network, TON, has an impressive array of use cases. For example, along with paying transaction fees, it can also be used for the payment of decentralized data storage and blockchain-based domain names (DNS).
However, the recent price rise of TON was fueled by the partnership with the Huobi Global centralized exchange. Traders can make deposits and enjoy a high-yield interest in the deposit event for launching by Huobi Global for TON. Toncoin is worth adding to your crypto watchlist as it would also be launched on the Binance exchange, creating massive exposure and positive price action for TON.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Dogecoin (DOGE)
Dogecoin's price has doubled after its ardent supporter, Elon Musk, completed the $44 billion deal of buying Twitter. Since 2021, it has been the most popular meme coin, and now with increased use cases, it has become an interesting yet profitable investment choice.
With the Twitter acquisition, DOGE has become the top crypto to watch, as possibilities are endless for the crypto, with more potential use cases arising in the future. On top of that, the asset has constantly been updating its network, as mentioned in Dogecoin Roadmap 2022. The addition of “Dogepedia” on its website to answer all crypto-related questions and a GigaWallet that allows merchants around the globe to accept DOGE as a payment option indicates its growth.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
The Bottomline
2022 has certainly been a painful year for cryptocurrencies. But as an early-stage asset class that is still evolving, the crypto investment sphere has also been a highly lucrative option for investors. Looking ahead, 2023 looks poised to be a big year for several digital currencies, and if you are looking for strong projects, these 5 cryptos could be worth watching as the Fed fights inflation.
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