By: Zeng Han-Jun, Head of Research, Market Capital Research

Two significant events has reached a fever pitch. First, there is the Bitcoin (BTC) halving and second, the potential approval of a spot Bitcoin ETF in the United States. However, investors are urged to exercise caution when investing in cryptocurrencies. These highly anticipated events may not have the earth-shattering impact that many crypto investors and traders believe.

To shed light on the first event, we need to discuss briefly about how BTC halving works. The BTC halving occurs approximately every four years and reduces the reward for mining new blocks by half, effectively limiting the supply of new BTC. Historically, the halving has been viewed as a catalyst for upward price movement.

Even though many may view it as so, investors and traders should also consider the viewpoint that markets may already anticipated and factored in future events. As such, the expected impacts of the upcoming BTC halving have already been priced in by the market. Investors and traders are encouraged to consider that viewpoint when making their trades.

Besides that, we are also witnessing the ongoing discussions surrounding the potential approval of a Spot BTC ETF and this has generated substantial excitement, with hopes that such a financial tool would attract institutional capital, potentially propelling BTC’s valuation to new heights. Notable players like BlackRock and Fidelity have thrown their weight behind the concept.

BTC has already maintained market dominance for the past few years. In fact, BTC’s dominance and its first mover advantage have continued to befuddle non-investors who often use the terms BTC and cryptocurrency interchangeably, often mistaking it for one another. There are some challenges to tackle if BTC was to break through its current price range. It’s unlikely that the new Spot BTC ETF concept would play a strong part in that. Apart from this, we need to dive into the details of new instrument and the price for risk mitigation. BTC will remain at the top of the food chain, independent of external influences.

While the market speculates on the potential impact of these events, it is important to note that BTC’s price continues to chart its own course. In the past 24 hours, BTC has experienced a slight increase of 0.4%. Presently, BTC is trading at $29,305 at the time of writing.

Then again,with the current bear trend in the crypto market, investors and traders are presented with an opportune moment to invest in digital assets at a lower price point. Apart from BTC, investors should diversify and explore three mid-cap tokens that exhibit promising potential for providing substantial upside in the short term.

Mantle (MNT):
Mantle (MNT), a relatively new addition to the market, has not mirrored the crypto market’s recovery. Typically, new coin launches are followed by a significant rally. However, MNT has yet to experience such a surge.

Having decreased by more than 11% in the past week, MNT remains confined within a narrow trading range between $0.5 and $0.6. A breakout from this range could propel the cryptocurrency towards the $0.8 mark, offering the potential for an impressive rally from its current position.

Toncoin (TON):
Toncoin (TON) is the brainchild of Telegram founders Nikolai and Pavel Durov, who subsequently handed the project over to the community. Enjoying strong popularity among Telegram’s millions of users, Toncoin has experienced notable success due to its close ties with one of the world’s largest messaging apps.

While it may not have kept pace with the broader crypto market, TON’s independent rally potential stands out as its greatest strength. With a 10% decrease in the past week, TON has yet to recover from the market’s recent downturn. This situation suggests the possibility of an upcoming autonomous rally, potentially propelling the altcoin beyond $1.4.

Injective (INJ):
Injective (INJ) secures its position on this list by virtue of its performance during the first quarter of 2023. Starting the year below $2, INJ peaked at almost $10, but its growth has since slowed down.

The recent slowdown suggests potential capitulation among investors, a phenomenon often preceding significant price spikes. Additionally, it signifies that sellers may have concluded their activities, providing the token with the necessary space to gather momentum.

If INJ emulates a similar rally to that of Q1 2023, investors could witness at least a 30% surge from current levels. These short-term gains would easily surpass the growth seen in larger cryptocurrencies like Bitcoin and Ethereum, which have outgrown the potential for rapid bursts over short durations.

The cryptocurrencies discussed in this paper benefit from solid communities and a reasonable level of interest. These two key factors, when aligned, often result in swift price recoveries. However, it is crucial to remember that cryptocurrencies are inherently volatile and subject to declines as much as they are likely to appreciate in value.

Investors should exercise due diligence, understanding the risks and volatility associated with these mid-cap tokens. The potential for significant short-term upside should be weighed against individual risk tolerance and financial objectives.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.