Crypto News – Analyzing the Market: Bitcoin vs. Meme Coins
Crypto News – As the price of Bitcoin and other prominent coins and tokens battled to gain ground for another dismal week, most cryptocurrencies are down this week. As of now, 4.88% less than a week ago, Bitcoin is trading for $61,172, according to CoinMarketCap.
According to analyst and founder of Capriole Investments, Charles Edwards, the top cryptocurrency’s lack of movement is just a regular part of the cycle, as he stated on X on Thursday.
Can Bitcoin Rise Again?
The largest digital asset has had difficulty gaining traction since falling below its 2021 record high of $69,044 in early April. The asset surged in value after the historic approval of U.S. exchange-traded funds (ETF) on stock exchanges. The coin’s seemingly unstoppable advance was slowed by the weariness of the ETF hype and worries that the Federal Reserve wouldn’t lower interest rates. But before Bitcoin hits its all-time high once more, it might take some time. According to a CoinShares report published on Friday, the decision will ultimately depend on the actions taken by the US central bank.
Is the Meme Coin Craze Coming to an End?
As developers persisted in doing bizarre and outrageous methods to draw attention to their assets, meme coin fever persisted. However, more well-known cryptocurrencies that saw significant increases last week continued to decline. For instance, Solana-based Bonk is currently selling at $0.00002236, down approximately 1.66%. Over the course of seven days, Dogwifhat, which also operates on Solana, had a decline of more than 15.26%.
At $0.1411, Dogecoin closes the weekend down more than 3.92%. Not all bad news, though: as it gets closer to a “golden cross,” it appears that the original meme coin will reward long-term investors.
FAQ
Why is Bitcoin Dropping?
According to Antoni Trenchev, co-founder of cryptocurrency lender Nexo, Bitcoin has hit a wall with the halving upon us as ETF demand cools off and geopolitical issues and uncertainty about inflation and monetary policy come to the forefront.
Why are Governments Wary of Bitcoin?
Governments everywhere are keeping a close eye on Bitcoin and acting when they can. Some of them outright forbid it, treat it as property or a commodity, or simply refuse to acknowledge it as legal money. The European Union even approved a framework for regulating cryptocurrencies in 2023 because they believe that Bitcoin could allow people to go beyond capital controls put in place by their government and subvert its authority.
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