Crypto U-Turn: Steer Clear of Three Coins Facing Inflationary Events, Experts Warn

Despite the bullish shift in the cryptocurrency market, three specific currencies, Heroes of Mavia (MAVIA), Galaxy (GAL), and Hashflow (HFT), will experience inflationary events through scheduled token unlocks, representing a significant percentage of their current supply. Traders are advised to avoid trading these assets during the next seven days to mitigate risks associated with supply inflation pressure.

Cryptocurrency Market Reverses Trend, But Speculators Cautioned to Avoid Three Cryptocurrencies Facing Inflationary Events

The cryptocurrency market has experienced a notable shift in sentiment, transitioning from a bearish to a bullish outlook following the release of nonfarm payroll data. The recent positive data has instilled optimism among traders, who anticipate a favorable macroeconomic environment for riskier assets in 2024.

However, despite the overall market upturn, several cryptocurrencies are scheduled to undergo inflationary events in the coming week, prompting analysts to recommend that speculators exercise caution in trading these assets to mitigate risks.

Scheduled Token Unlocks to Create Inflationary Pressure

Token unlocks, also known as cliff unlocks, refer to pre-determined dates when a specific amount of tokens are released into circulation. These events can significantly increase the supply of a cryptocurrency, potentially leading to downward pressure on its price.

Three cryptocurrencies, Heroes of Mavia (MAVIA), Galaxy (GAL), and Hashflow (HFT), are set to experience significant token unlocks over the next seven days, starting from May 4th. Collectively, these unlocks are estimated to total approximately $56.24 million, which could potentially exacerbate inflationary pressures on their respective prices.

Heroes of Mavia (MAVIA): Dominant Inflationary Influence

MAVIA will account for a substantial 55% of the total token unlocks in the coming week, with a release of 6.328 million tokens worth $30.79 million on May 6th. This amount represents a significant 25% of MAVIA's current circulating supply, indicating the potential for a substantial impact on its price.

Galxe (GAL): Significant Unlocked Value

GAL is set to release 5.17 million tokens valued at approximately $19.20 million, constituting 34% of this week's unlocks and 5.8% of the project's market capitalization. Similar to MAVIA, this substantial supply increase raises concerns about potential downward pressure on GAL's price.

Hashflow (HFT): Sizeable Unlock Despite Bullish Outlook

Hashflow's token unlock, scheduled for May 7th, will introduce 13.326 million HFT tokens into circulation, with an estimated value of $4.20 million. While Hashflow has been displaying positive price performance, the token unlock could introduce supply-side pressures that speculators should be aware of.

Trading Recommendations

Given the imminent inflationary events, analysts advise speculators to avoid trading the aforementioned cryptocurrencies (MAVIA, GAL, and HFT) in the coming week to minimize potential risks associated with increased supply.

While these cryptocurrencies may still experience positive price movements in the short term, implementing prudent risk management strategies, including avoiding trading during periods of significant supply pressure, is crucial for successful cryptocurrency trading.

Disclaimer:

The information provided in this news article should not be construed as investment advice. Investing in cryptocurrencies involves inherent risks, and individuals should exercise caution when allocating capital to these volatile assets. It is recommended to conduct thorough research and consider one's risk tolerance before making any investment decisions.