As Tuesday unfolds with risk assets starting on a defensive note, major cryptocurrencies are losing ground, giving back a significant portion of Monday’s gains. This pullback has traders scouring the altcoin markets for top performers that might shield them from potential downside risks.
Renewed strength in the Japanese yen is back in the spotlight, driven by speculation of further interest rate hikes from the Bank of Japan. This development has triggered concerns over the unwinding of the “carry trade,” where investors borrow in low-interest currencies like the yen to invest in higher-yielding assets.
With these macroeconomic factors at play, traders are exploring altcoins that could provide a buffer against broader market turbulence. The focus is on assets with strong fundamentals, recent momentum, and those connected to sectors like decentralized finance (DeFi), gaming, and Layer 2 scaling solutions.
As the yen gains traction and market volatility increases, the ability of altcoins to act as safe havens remains uncertain but worth watching closely. Traders are advised to stay agile, informed, and prepared to adapt to rapid market shifts in this complex financial environment.
