Meme Coins Swell as Sector Outstrips Broader Crypto Market
Meme coins are experiencing strong gains as Bitcoin rises, with Bonk, Pepe, and Shiba Inu up over 20%, 14%, and 10% in 24 hours, and Pepe leading weekly gains at 70%. This surge coincides with a stable Bitcoin, which has closed higher for four consecutive days and surpassed $90,000, supported by a rise in open interest to $31.44 billion, its highest in six weeks. Factors such as disinflation, expectations of interest rate cuts, and increased U.S. access to resources like Venezuelan oil may be contributing to renewed risk appetite. However, some market analysts caution that meme coin rallies are often driven by temporary factors, such as low liquidity, and may not indicate a broader shift in market sentiment. Retail traders show cautiously increased optimism, with an 82% probability assigned to Bitcoin reaching $100,000 before $69,000. Other altcoins like Hyperliquid, Hedera, Aster, and XRP are also up around 5%. Despite these rallies, the Crypto Fear & Greed Index indicates that broader market sentiment has not fully recovered from last year's downturn.
