Memecoin Madness Shakes Bitcoin Halving Cycle
2 min read
Memecoin Madness Shakes Bitcoin Halving Cycle
The current bull market in the crypto industry has been deemed the “weirdest” on record by industry analysts. This is due to several unique factors that have deviated from the usual patterns seen in previous bull runs. Instead of seeing liquidity flow from Bitcoin to Ethereum and then to other high-cap coins, the market has seen a direct flow from Bitcoin to memecoins, which is unusual. Memecoins, such as ‘dogwifhat’ and ‘Book of Meme’, have experienced a surge in total capitalization, reaching $70 billion on April 1.
Notably, the Coinbase layer-2 network Base has also become a hub for memecoin speculation. Tokens like DEGEN, which are native to Base, have seen incredible gains of up to 2,800% over the past month. DEGEN is an unofficial token distributed to the community on the decentralized social network Farcaster.
Despite this peculiar market behavior, analysts argue that market fundamentals are not playing a significant role at the moment. Retail money has entered the market, but not at the levels seen in previous bull markets. Instead, the current market is driven more by attention-grabbing narratives rather than real fundamentals.
Ethereum educator Anthony Sassano concurs with this assessment and states that this bull market is the strangest he has seen in his decade in the industry. He highlights the absence of meaningful retail participation and emphasizes that the entire market needs to move together for retail to truly enter the scene. Currently, pumps in specific sectors are being driven by crypto enthusiasts rotating money between these sectors.
Adding to the unusual nature of this market cycle is the fact that Bitcoin hit an all-time high before its halving. In previous cycles, the all-time highs occurred the year following the halving. Bitcoin reached a high of $73,734 on March 14, and the halving is just 18 days away on April 20. Analysts believe that the pre-halving retrace is already over, and technical indicators support this belief.
Technical analyst Moustache points out that BTC has reclaimed a key Fibonacci ratio level before the halving, which has been seen in previous cycles. These deviations from the usual patterns have made this bull market the strangest and most unique in the history of the crypto industry.
Oh great, another technical analysis claiming that this bull market is unique. Can’t we just have a normal, predictable market for once?
I’ve been in this industry for years and I’ve never seen anything like this. It’s just one strange narrative after another, no real fundamentals whatsoever
This bull market is defying all logic and reason. I can’t wait for things to get back to normal, whatever that is in crypto
It’s incredible to see memecoins like ‘dogwifhat’ and ‘Book of Meme’ reaching a total capitalization of $70 billion! The power of attention-grabbing narratives is truly something else! This is definitely the weirdest bull market ever witnessed in the crypto industry!
Anthony Sassano, the Ethereum educator, confirms that this bull market is indeed peculiar. We’re missing meaningful retail participation and the market needs to move together for that to change. Let’s hope for a more stable and inclusive market soon!
Wow, this bull market in the crypto industry is truly weird! Who would’ve thought memecoins like ‘dogwifhat’ and ‘Book of Meme’ would be driving the market instead of the usual Bitcoin to Ethereum flow? The crypto world keeps surprising us!
I really hope this so-called retrace before the halving is actually over. I’m tired of all these unexpected twists and turns
It’s fascinating how crypto enthusiasts are rotating money between different sectors, driving pumps in specific areas. The market dynamics are truly unique in this bull run!