As a seasoned analyst with over two decades of experience in the financial markets under my belt, I must admit that the current state of the crypto market feels eerily reminiscent of the Dot-com bubble in the late 90s. However, unlike those days where people were investing in companies without a clear business model or revenue stream, today we have Bitcoin – the digital gold, and memecoins like PEPE, SHIB, FLOKI, and BRETT that have captured the hearts (and wallets) of many retail investors.
Meme-based cryptocurrencies like PEPE, SHIB, FLOKI, and BRETT experienced a boost in their value as Bitcoin reached and surpassed the significant level of $65,000, fueling speculation about an upcoming bull market.
Based on CoinGecko’s report, Bitcoin (BTC) experienced a significant surge in the past 24 hours. Its value climbed from $63,680 to reach an intraday peak of $65,743 before settling at $65,328 as we speak.
To attain its record peak of $73,737, the leading cryptocurrency needs a surge of approximately 11.2%. Given that Bitcoin has already surpassed a 23% increase since its lowest point this month, reaching this new high appears plausible as it’s currently in a technical bull market.
The bullish case for Bitcoin
Bitcoin could surge to fresh peaks due to several possible triggers, with the main factor being the U.S. Federal Reserve’s decision to lower interest rates by 0.5%. Typically, such a move favors high-risk investments, such as Bitcoin.
Additionally, according to a survey by Polymarket, it appears that a significant number of traders anticipate Bitcoin will hit an all-time high in 2021, as approximately two-thirds (66%) of those polled believe the bullish trend will persist.
In response, it’s worth noting that the Bitcoin Fear & Greed Index has climbed from 50 (yesterday’s neutral point) to 61 today. This suggests that the market is currently exhibiting signs of greed, meaning traders are more inclined to purchase rather than hold back.
Concurrently, it’s been observed that institutional funds are pouring into Bitcoin Spot Exchange-Traded Funds (ETFs). As per SoSoValue, over the past four days, these spot ETFs have received inflows surpassing $600 million, bringing the total to a staggering $18.31 billion.
The amount of Bitcoin kept on exchanges has reached a record low recently, indicating that many users have moved their coins to personal storage. Currently, exchanges are holding approximately 2.34 million Bitcoins, which is lower than the maximum recorded this year of 2.7 million Bitcoins.
Memecoins take off
In recent times, an optimistic outlook towards Bitcoin has emerged, leading to notable increases for popular meme-based cryptocurrencies. Many of these coins have seen gains of over ten percent, with some even doubling in value. As a result, the total market capitalization of memecoins has climbed by 16.5%, reaching a staggering $54.9 billion within the past day.
On September 27th, Pepe (PEPE), a memecoin built on Ethereum, surged by 16.7%, making it the highest performer in the cryptocurrency sector. This significant rise pushed its price back up to $0.0000104, a level last seen at the start of August. The coin’s daily trading volume experienced an enormous increase, reaching approximately $2.3 billion. Meanwhile, its market capitalization stood firm at around $4.37 billion.
As a crypto investor, I’ve noticed that Shiba Inu (SHIB), Floki (FLOKI), and Brett (BRETT) have hopped onto the memecoin bandwagon, riding the wave of impressive growth. To be precise, these coins have surged by 16.3%, 15.4%, and 13.8% respectively in a short span of time.
When Bitcoin thrives, it strengthens investors’ trust and ignites more curiosity about other digital currencies, like meme-based ones. This could lead to a self-reinforcing trend, as rising prices entice more investors, thereby accelerating the price surge even further.
Read More
Sorry. No data so far.
2024-09-27 11:58