The sun appears to have come out in the midst of the crypto winter, as several digital currencies are rallying. Many have begun to move higher and are trading well off their mid-June bottoms.
What Changed Now: The sell-off in risky assets has made valuations very attractive, and this has drawn in bargain hunters. The buying may have also been supported by the expectation that one of the risk factors that was playing up in the minds of traders could soon be mitigated.
Most economists believe the Federal Reserve could soon drop its aggressive monetary policy stance, and pause rate hikes in 2023. After three 75-basis-point increments, there could be another one of similar magnitude next week. The December meeting will likely throw in a smaller hike, setting the stage for a pause early next year.
Benign interest rates would mean consumers will be left with more money to spend and invest, and corporations will have access to finances on easier credit terms. This in turn will kick-start the economy.
In the near term, the markets have received support from an increase in risk appetite following encouraging earnings reports. Most companies, barring big techs and those that rely on ad dollars, have reported better-than-feared results for the September quarter.
Dogecoin DOGE/USD is seeing particular strength, as Elon Musk’s Twitter, Inc. TWTR purchase is perceived to be positive for the meme crypto. Musk has been very vocal in his support of the doge-themed currency, preferring it over even Bitcoin BTC/USD.
See also: Dogecoin Price Doubles In A Week, Analyst Say DOGE Can Hit 50 Cents By End Of 2022
Doge Vs, Bitcoin Vs. Apple: Among high-profile stocks, Apple, Inc. AAPL has been a standout performer, given its businesses are relatively immune to a recession.
As the crypto rally picks up steam, here’s a look at how returns from investments in Bitcoin, Doge and Apple compare, assuming money was plowed in at the mid-June lows.
A $1,000 invested in Bitcoin at the apex crypto’s mid-June low of $17,708.62 (June 18) would have fetched an investor 0.06 bitcoin. This 0.06 bitcoin would be worth $1,250.30 at Saturday’s intraday high of $20,988.39, a 25.9% gain over about four months.
A $1,000 invested in Doge at its mid-June low of $0.050267 (June 14) would have bought 19,893.8 Doge. If the same were sold at Saturday’s intraday high of $0.149076, the return would have been about $2,965.69 or 297%.
A $1,000 invested in Apple at the stock’s mid-June low of $129.04 (June 16) would have fetched 7.75 shares. If these shares were sold at Friday’s intraday high of $147.28, the sale would have generated a return of $1,141.42 or 14.14%.
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Image and article originally from www.benzinga.com. Read the original article here.