Bitcoin Price Plummets Amid Surge in Meme Coin Popularity

Bitcoin Price: Meme Coins Rise to Prominence

Crypto News- Over the last 24 hours, both Bitcoin (BTC) and Ethereum (ETH) have experienced a modest decline of just over 1%, signaling a subdued atmosphere in the crypto market following last week’s rally. While major tokens such as Solana’s SOL, XRP, and Binance Coin (BNB) have remained relatively stable, meme coins, particularly Shiba Inu (SHIB), have seen significant gains, with SHIB climbing as much as 12%.

The CoinDesk 20 (CD20), an index tracking the largest tokens excluding stablecoins, has dipped by 0.5%, reflecting overall market sentiment despite positive news such as the approval of a spot Ethereum ETF and optimistic forecasts from leading crypto analysts and influencers.

Shiba Inu Emerges as the Star Performer

Contrary to bullish predictions for the top two digital assets, it’s meme coins that are dominating today’s market performance.

The surge in meme coins, including Dogecoin (DOGE) — which experienced a 5% drop following the passing of Kabosu — and SHIB, began during Tuesday’s European trading hours. Interestingly, this coincided with a 19% increase in pre-market trading for GameStop Corp (NYSE: GME) stocks. Historically, movements in GameStop have often correlated with gains in meme tokens.

Rennick Palley, founding partner at Stratos, a crypto fund, commented on the shift in popular memes following the re-entry of Asian traders into the market. Palley attributed this trend to the positive impact of excitement surrounding the ETH ETF and the US regulatory shift towards a more pro-crypto stance.

According to Palley, “most tend to see their prices rise most significantly during Asian trading hours, during the middle of the night US time.”

The recent rally in Shiba Inu can be attributed to various factors, including strategic partnerships, renewed investor interest, and recent technological upgrades within the Shiba Inu ecosystem. SHIB saw a nearly 15% surge, reaching $0.00002931 with a market cap of $16.74 billion.

As a result, the meme coin surpassed Cardano’s market cap of $16.44 billion, cementing its position among the top 10 cryptocurrencies globally and displacing Cardano from its previous standing.

Factors Driving SHIB’s Surge

In recent weeks, meme tokens like Pepe (PEPE) and Mog (MOG) have experienced a remarkable surge, with gains of up to 100%. This surge has been fueled by optimism surrounding the Ethereum ecosystem and the approval of a spot Ethereum ETF in the US.

However, despite the bullish momentum for meme coins, Bitcoin remains within a bearish trading range. Alex Kuptsikevich, a Senior Market analyst at FxPro, noted that a shift in pattern will occur only with a clear daily close above the $70,000 level for Bitcoin. While Bitcoin remains in consolidation mode, it boasts several fundamentals such as the potential for a spot Bitcoin ETF. However, market sentiment needs to align for the anticipated 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,” stated Kuptsikevich.

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