As Bitcoin once more languishes below the $24,000 threshold, altcoins like CEL, KUJI, EWT, and others are seeing a recent, seven-day boost in price movement. What's driving the action, and will the optimism around these coins linger beyond a brief rally? Caitlin Cook, Head of Marketing and Communications at Hxro, joins Closing Bell to discuss altcoin movement, investor risk, and more. 

Closing Bell

Why Are Altcoins Exploding, And Will the Rally Last?

Bitcoin. Yes. Under pressure down a little bit today, but some, all coins are actually seen quite a bit of upside for low cap, all coins in particular have exploded nearly 90% or more in just the past week and that includes the Celsius cell coin. Could coochie coin, excuse me. The energy web token and the flux coin for their So each seems to be moving for its own unique Greece including cell, which has jumped 100 and 66% in the past seven days despite its parent company going bankrupt, dealing with legal trouble and more. And joining me now is Caitlin Cooke have marketing and communications at hero. That's a firm focusing on liquidity and risk in the crypto space along with derivatives built on Solana. So Caitlin, it's good to see you, why do you think we're seeing this sort of movement when it comes to all coins? Well, we are approaching mid august now. Right. And I think we're finally getting through those stereotypical summer doldrums and investors are gearing up to deploy more capital and get more skin in the game in the markets. And we've definitely seen some interesting actions specific to all coins, as you mentioned, important to know and reiterate as you mentioned, a lot of the old coins that we've seen jump in even the past week or so are a low market cap so much easier for say a smaller group of investors to move the needle in a noticeable way at least over the short term doesn't mean it has like for the long term now. So unless there's a strong narrative to hang onto their in regard to the network or the protocol that that coin is attached to, I don't really see it being anything more than a blip personally. Okay, so it sounds like these are trading coins, investors are trading these coins, or traders rather are trading these coins. This is not necessarily a long term investment per se, like a Bitcoin, is that right, correct. And I I do think talking about, you know, looking at Bitcoin prices and over the past few months, they've really been pretty range bound, um, and not really providing a lot of excitement for investors. So where are they to turn? I think, um lower cap all coins are clearly where they've gone at least in the past few weeks. And I think that we're gonna see that continue at least until the merge coming up around September 15th. Okay, so as someone who focuses on risk and liquidity, managing that Caitlin, I know you're the head of marketing and communications at hero, do you think investing in these all coins is safe? I think it's important to keep it in perspective. So just to know what you're doing there, right, speculating over the short term is just that speculation and there's obviously a lot of risk involved in that, so investors really need to account for, you know what they're investing in, the amount that they're willing to put into that as well as the amount that they are willing to lose or the amount that they're willing to put on the table and that risk tolerance is definite differs from investor to investors. So there's definitely a lot of risk involved in it, but there's also a lot of short term opportunity with the volatile crypto markets as we've seen in the past and I expect that to continue. Okay. Some people might be wondering Caitlin and you're the expert here, how is this cell all coin trading if Celsius went bankrupt? How does that work? Well, I think it's fairly common to see price a different separate out from fundamentals over the short term and we see that in crypto, we see that in equities all the time. So it just turns out that Celsius is the flavor of the week I guess. And that's, it comes as no surprise it's under a microscope right now in terms of lawsuits that are undergoing and bankruptcy proceedings. So investors are just seemingly being opportunistic around a coin that is already on high amount of scrutiny and I don't see that being sustained over the long term for obvious reasons, flavor of the week. I think you put that really well Caitlin. So I think buyer beware. Um, that's for sure if you're looking to invest in some of these, all coins, I know earlier you mentioned the merge, we're hearing so much about the so called merge for ethereum come september, tell me more about that and what you expect to happen around it in the crypto space. I think the merge is the biggest story that investors are hanging on to right now in the crypto space. And I think that's another reason that we have seen Bitcoin and ether really not doing too much from a price movement standpoint again, I think it's been pretty range bound over the last 2 to 3 months and the IV merges coming up on at least tentatively on september 15th or 16th. That's the biggest story in the crypto space as a whole right now and I, I think that things will be pretty quiet on these sort of large cap crypto, so to speak until then. And that's another reason that I think we've seen people turn to all coins, there's really not a ton of excitement going on until this, you know, the, is actually the merge is actually completed. So um, that's probably the biggest story out there right now and they put a date out there for everyone to hold on to. So excited to see, you know, as we get closer to, I expect to see a lot more activity in the markets around that alright flavor of the week for some of these coins, Caitlin, you do such a good job of breaking down some of these complex topics, we appreciate it. That's Caitlyn Cook, head of marketing that comes at hero