Crypto Faces a Liquidity Test as Yields Rise: 5 Altcoins to Buy and Hold for the Next Big Move

• Rising Treasury yields could create additional pressure on cryptocurrency liquidity and risk appetite.
• Chainlink, Hedera, Litecoin, Polkadot, and Dogecoin have different network uses and market drivers.
• A sustained improvement in liquidity could influence altcoin rotation, while higher yields may limit risk-taking.

Amid a new round of liquidity challenges for cryptocurrencies, U.S. Treasury yields are pushing risk assets to the test. Increased yields makes government debt more alluring, and increases interest rates throughout the financial markets. That change can decrease the resources accessible for speculative resources, for example cryptocurrencies. The market talks have consequently been focused on the reaction of digital assets to tighter financial conditions recently. If this continues to rise while the prospects of monetary policy remain unclear, the impact may grow in significance.

Altcoins are typically more volatile, as they are traded on smaller markets, and are reliant on the overall mood of the market. But not all projects are created equal when it comes to market weakness. The factors that affect how individual assets react include: network activity, institutional use, development progress, and liquidity. Amidst this, there are other altcoins to keep an eye on, such as Chainlink, Dogecoin, Hedera, Litecoin and Polkadot. Both their underlying networks have different functions, and so may have different reactions to a change in market liquidity. The action will help support the altcoins, though when this will happen is unclear.

… Continue reading the full article at the original source below.