Bitcoin’s (BTC) recent narrow price range between $ 94,000 and $ 100,000 has confused many market participants.
While the biggest cryptocurrency historically shows strong directional movements followed by months of consolidations, known as staircase movements, this time feels different. Usually, consolidations are followed by a breakout. In contrast, the range is narrowed. In December it was $ 90,000- $ 110,000.
Participants in last week’s Consensus Hong Kong shared the mood, with some prominent market manufacturers and industrial figures that suggest that the violent Memecoin -madness is an important cause behind the Lulden of BTC and the wider Altcoin market that feels similar to the deficiency price from seven years since.
“The market has been very saturated with Memecoin launches, and Crypto -natives are kind of exhausted of this,” said Evgeny Gaevoy, CEO of the leading market manufacturer Wintermute, at the conference.
Tokens as President Donald Trump’s Trump and the weight token, promoted by Argentine President Javier Milei, tend to draw liquidity from several established cryptocurrencies, Gaevoy said, with dealers who buy them at the expense of other coins.
Such a stagnant BTC price behavior is reminiscent of September-October 2018, as the range tightened over the following weeks and ultimately settles between $ 6,000 and $ 6,400.
However, it is not a completely parallel situation. It happened under a bear market after a steep decline from Bitcoin’s then record high high of almost $ 20,000, causing the range to play something sound as investor confidentiality declined. This time, BTC is only approx. 12% during its high time.
President Memecoins
Three days before his January 20th inauguration, Trump debuted his official token, Trump, who reached a market capital of over $ 12 billion in just 48 hours. Its descent was just as fast and the market capital had crashed to almost $ 3 billion at the beginning of this month, data from the CoingeCKO Show.
What is interesting is that the total crypto market value remained largely unchanged on almost $ 3.5 trillion during the boom-bust cycle. It’s a sign that Memecoin did little to draw new capital on the market. In other words, the money simply wandered from BTC, Solana’s sun and other coins.
While some wallets that invested early earned big money, about $ 800,000 lost a total of $ 2 billion by selling with a loss or incurred when prices crashed, according to Chainalysis.
Something similar played out under weight Fiasco early this month, which destroyed $ 251 million in investor money and became a net fortune-destroyer for Crypto Market.
This is probably the reason why Abraxa’s Capital Management founder Fabio Frontini said Memecoins should be banned. He spoke during a quick round of fire at “Viewing from Wall Street to the Crypto” session by consensus.
Jason Atkins, Chief Commercial Officer at Auros, said the fact that Memecoins sucking liquidity from the other sectors on the market show how fragile liquidity pool is.
“It’s clear that adoption is still at an early stage,” Atkins said in an interview. “The number of participants remains relatively low and the fact that a high-profile token launch can send shock waves across the market showing how fragile liquidity pool is. It is a clear signal that the wider market lacks sufficient depth and stability.”
These are the most important demands to attract more institutional interest, he said.
“Institutional investors are actively investigating how they can engage in this space. But they are careful. They have to see a more mature, stable market that can handle larger quantities without being disturbed by speculative, meme-driven activity. “
Bitcoin’s direction
Opinions were mixed about what happens next for the BTC price.
Several consensus delegates said that the meme madness and the creepy stability of BTC are unhealthy. Such reach often ends with a downward move, they said. That’s what happened in 2018 when the consolidation ended with a sharp decline.
On the other hand, the Memecoin saturation overshadows positive positive news on the legislative front, Wintermutes said Gaevoy.
“People do not necessarily appreciate that we have a lot of positive news, for example on the legislative side, we have all forgotten how bad an influence SEC and even CFTC was in the last few years, and now it is completely gone.
ALTCOIN ETFs?
The regulatory environment includes amendment of US administration and output of Gary genes from Securities and Exchange Commission.
A number of issuers have now submitted SEC applications for spot exchange-traded funds (ETFs) tied to Solana’s Sun, XRP, Dogecoin (Doge) and Litecoin (LTC).
To date, the regulator has only approved Spot Bitcoin and Ether ETFs, provided that CME’s monitoring system for Bitcoin and Ether Futures reduces concern about pricing manipulation. If CME futures are seen as a prerequisite for winning approval for ETFs tied to digital assets, it is worth noting that the wider altcoins do not have the privilege yet.
Gaevoy disagrees.
“It’s a relic from the previous SEC management. I certainly won’t be surprised if Solana and other Top 10 -Token’s exclusive stableecoins are approved,” he said.
