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The surge of memecoin frenzy disrupts the traditional Bitcoin halving cycle

Crypto industry analysts are dubbing the current Bitcoin halving cycle as the “strangest” bull market to date, characterized by an early Bitcoin all-time high and a surge in memecoin investments.

Chainlink community liaison, Zach Rynes, known as ‘ChainLinkGod,’ highlighted this peculiarity in a recent post to his 171,000 followers on X. Typically, liquidity would first enter Bitcoin during bull runs before extending to Ethereum and other major coins, followed by smaller altcoins. However, Rynes noted a deviation from this pattern, with capital flowing directly from BTC to memecoins, a departure from the norm observed in previous cycles.

On April 1, the total capitalization of memecoins surged to $70 billion, driven primarily by pumps in newly launched tokens like Solana-based ‘dogwifhat’ (WIF) and Book of Meme (BOME), as well as older memecoins such as Pepe (PEPE) and Bonk (BONK).

The Coinbase layer-2 network Base has also emerged as a hub for memecoin speculation. For instance, the recently launched Base-native token DEGEN has skyrocketed by a staggering 2,800% over the past month. DEGEN is an unofficial token distributed to the community on the decentralized social network, Farcaster.

Notably, market fundamentals seem to be taking a backseat amidst this memecoin frenzy.

“There’s some retail money that’s entered, but nowhere near the levels we’ve seen before; we’re in an attention economy based on specific narratives, not real fundamentals.”

On April 1, Ethereum educator Anthony Sassano expressed a similar sentiment, stating that after roughly a decade in the crypto space, he confidently believes that this is the strangest bull market the industry has ever experienced.

Moreover, Sassano noted that retail investors have yet to fully participate, emphasizing that true retail involvement occurs when the entire market rises in unison.

“Not these isolated sector-specific pumps that are very obviously pushed by crypto natives and just involve a hot ball of money rotating around.”

Adding to the peculiarities of this market cycle is the fact that Bitcoin has achieved an all-time high prior to the halving event. Historically, Bitcoin’s peak price has typically occurred in the year following the halving.

With Bitcoin reaching a staggering $73,734 on March 14, and the halving slated for April 20, just 18 days away, analysts have speculated that the pre-halving retracement has concluded.

On April 1, technical analyst Moustache pointed out that Bitcoin had reclaimed a crucial Fibonacci ratio level, a pattern observed in previous cycles, but notably, this occurred before the halving.

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