Bitcoin (BTC) has surged towards its highest levels since mid-May, driven by a combination of macroeconomic factors and increasing demand for spot Bitcoin ETFs among US investors. The cryptocurrency reached as high as $71,700 on Wednesday following softer-than-expected job data releases, suggesting that the upcoming official jobs report may not be overly strong. This has fueled optimism that the Federal Reserve may implement rate cuts in September, leading to a decline in US 10-year yields and boosting sentiment in both equity and crypto markets.

Spot Bitcoin ETFs See Strong Inflows

Spot Bitcoin ETFs have experienced significant inflows, with Tuesday marking the second strongest day of inflows since their launch. Inflows to Bitcoin ETFs surpassed $886.6 million on Tuesday, with total inflows exceeding $2.4 billion in the past month. This surge in institutional interest, coupled with the recent approval of spot Ethereum ETFs by the SEC, indicates growing support for cryptocurrencies in the US.

Bitcoin's Potential for Upside

As rate cuts loom, institutional demand grows, and regulatory sentiment towards crypto softens, Bitcoin is poised for further upside. A potential test of $100,000 this year or next remains likely, making Bitcoin an attractive investment option, especially for beginners. However, traders with high-risk tolerance may seek greater returns by exploring smaller altcoins, particularly those in the on-chain markets.

Diving into On-Chain Markets for High Returns

On-chain markets offer the potential for significant gains, albeit with higher risk. Newly launched coins on the blockchain can experience rapid price surges, presenting opportunities for substantial profits. Traders use tools like DEXScreener to identify top gainers in the on-chain markets. Some notable movers on Wednesday include:

Shina Inu (SHIN): A China-themed version of Shiba Inu, up 87,000% in 24 hours.

Spike (SPIKE): A new coin allegedly based on Pepe cartoon creator Matt Furie's first cartoon image, up 39,700%.

Pear (PEAR): A Pear-shaped version of Pepe, up close to 32,000%.

Considerations and Alternatives

Investing in on-chain markets carries inherent risks, and traders should exercise caution. An alternative strategy is to invest in presales of up-and-coming web3 projects, offering early access to tokens at low market caps. Analysts at Cryptonews.com curate lists of high-potential presale projects for investors to consider.