Coinspeaker Bitcoin Price Slumps as Meme Coins Takes Bullish Spotlight
In the past 24 hours, Bitcoin (BTC) and Ethereum (ETH) prices have decreased by slightly more than 1%, an indication of a subdued crypto market following last week’s rally. Although major tokens like Solana’s SOL, XRP, and Binance Coin (BNB) have shown little change, meme coins, particularly Shiba Inu (SHIB), have driven significant gains, with the token climbing up to 12%.
CoinDesk 20 (CD20), an index tracking the largest tokens excluding stablecoins, declined by 0.5%. This is a general reflection of market sentiments despite the spot Ethereum ETF approval and other bullish predictions by top crypto analysts and influencers.
Shiba Inu Is Outperforming Bitcoin
Despite the bullish predictions for the two top digital assets, it is meme coins that are witnessing a surge in market performance today.
Notably, the surge in meme coins, including Dogecoin (DOGE) whose price was down 5% following the death of Kabosu and SHIB, commenced on Tuesday in the European trading hours. This coincided with a 19% rise in pre-market trading for GameStop Corp (NYSE: GME) stocks. Generally, such movements in GameStop have often led to gains in meme tokens.
In a statement, Rennick Palley, founding partner at Stratos, a crypto fund, noted there is a shift amongst popular memes following the re-entry of Asian traders to the market. Palley attributed this trend to the positive impact of the excitement around the ETH ETF and the US regulatory shift towards a more pro-crypto stance.
According to him, “most tend to see their prices rise most significantly during Asian trading hours, during the middle of the night US time.”
Notably, the rally in Shiba Inu in recent times could be attributed to different factors, including strategic partnerships, renewed investor interest, and recent technological upgrades in the Shiba Inu ecosystem. SHIB price jumped nearly 15%, reaching $0.00002931 with a market cap of $16.74 billion.
In effect, the meme coin exceeded Cardano’s market cap of $16.44 billion. This placed Shiba Inu among the top 10 cryptos globally, effectively dethroning Cardano.
Factors behind SHIB’s Rally
A remarkable surge has registered in recent weeks amongst meme tokens like Pepe (PEPE) and Mog (MOG). These tokens have surged by up to 100%, fueled by optimism surrounding the Ethereum ecosystem and the approval of a spot Ethereum ETF in the US.
However, despite the bullish rally for meme coins in market activity, Bitcoin remains in a bearish trading range. According to Alex Kuptsikevich, a Senior Market analyst at FxPro, a shift in pattern will occur when there is a clear daily close above the $70,000 level. Though Bitcoin remains in consolidation mode, the coin boasts of many fundamentals bordering on spot Bitcoin ETF, market sentiment needs to rhyme for the expected breakout
“A clear exit and daily close above $70,000 will break this bearish pattern. Until then, the classic development is a pullback to the lower range at around $68,000,” Kuptsikevich stated.
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Bitcoin Price Slumps as Meme Coins Takes Bullish Spotlight