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- Altcoin season is here
Altcoin season is here
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Memecoin mania overshadows Bitcoin’s $75K aspirations
Key points:
The ongoing bull run is seeing a market shift in favor of memecoins.
Bitcoin’s market cap dropped by 1% over a 24-hour period too.
News - Memecoins in the Solana ecosystem have seen exponential growth in the ongoing bull run. Memecoins, despite their apparent lack of actual value, have captured public fascination of late, with memecoins gaining popularity across ecosystems now.
Biggest issue with cryptocurrencies - The number of cryptocurrencies in the market has seen an unprecedented growth. In January 2021, there were an estimated 4,154 in the market. Fast-forward to March 2024, and the number has increased to 13,217 and counting. However, most cryptocurrencies today are based on ‘vaporware’ - products that are promised to the public but never actually created. This causes token dilution, and there is simply no space for someone to invest in all cryptocurrencies of their choice.
Memecoins cash in - Memecoins are a breath of fresh air in this oversaturated space. Their motive is simple - The tokens bring a community together through jokes and vibes, promise no product, and a lot of folks aren’t particularly concerned about potential returns.
Still behind Bitcoin - Despite their immense growth, however, memecoins can only dream about competing against Bitcoin at this stage. Since the dip on the 1 May, Bitcoin has added $233 billion to its market capitalization. In comparison, the top ten memecoins’ total combined market capitalization stood at $57.26 billion, at press time.
Michael Saylor backs Ethereum ETFs, its advantages for Bitcoin
Key points:
Michael Saylor believes Ethereum ETF approval will be even better for Bitcoin’s price.
Bitcoin’s Rainbow Chart has started to flash the ‘Buy’ signal too.
News - MicroStrategy founder Michael Saylor has changed his stance on Ethereum ETFs after the SEC’s approval. Initially parroting a ‘no second best to Bitcoin’ rhetoric, the CEO now believes the king coin is ‘supported by the entire crypto industry’ in its fight against regulatory issues in the U.S.
This includes crypto-regulations, the U.S. CBDC ban, and the latest, most controversial FIT21 Act.
Bitcoin repeats history - As the market revels in the optimism brought about by the Ethereum ETF approvals, Bitcoin appeared to be mimicking its 2020 post-halving trend. This is against the ongoing narrative, where it seemed that BTC’s refusal to go above $70K had disheartened investors.
Investors should remember that post the third halving in 2020, the king coin had remained stagnant in the ‘Buy’ zone for a few months, before skyrocketing to new highs. Currently, as per the Rainbow Chart, Bitcoin is in its ‘Buy’ zone again.
Metrics suggest otherwise - Regardless of the long-term projections of the Rainbow Chart, investors are choosing to sell their coins. For instance, Bitcoin’s Exchange Outflows and Supply on Exchanges increased, showing that investors have been selling, instead of holding or accumulating.
BTC’s Fear and Greed Index had a reading of 72 too, underlining greed in the market and a possible price correction in the near term. Likewise, its Coinbase Premium was green too - Another sign that investors are selling.
Altcoins, not Bitcoin or Ethereum, keep South Korea hooked to crypto
Key points:
South Koreans are more likely to search for Bitcoin and altcoin online, compared to people in the U.S. and Japan.
Altcoins’ market cap has exceeded $1.1 trillion, signaling a potential altseason on the horizon.
News - According to a report by the blockchain market consultancy DeSpread, the influence of the South Korean market in the global cryptocurrency industry has seen a marked increase. This report came on the back of another recent report by Forbes. It ranked South Korean exchange Upbit as the fourth-most trustworthy crypto exchange in the world.
Altcoin preference is ‘one of the main features of the domestic virtual currency market,’ according to DeSpread. What this means is that South Korean users are more inclined to trades in smaller altcoins, not necessarily Bitcoin or Ethereum. Some of the most popular altcoins in the country are Multiverse Capital [MVC], Ondo Finance [ONDO], and Floki Inu [FLOKI].
3x gains? The altcoin market has seen the emergence of a head-and-shoulders pattern lately. If altcoins can pass this formation, the potential breakout could triple the altcoin market cap.
Currently, the sector’s market cap is on the verge of posting its highest weekly close since early April 2024. If the level is crossed, a new altseason could emerge.
What do the charts say? - AMBCrypto’s analysis supported this bullish narrative. On the daily chart, altcoins’ market cap had flipped a significant support into resistance. The next resistances are at $1.2 trillion and $1.25 trillion.
According to the Founder of MN Trading, the total market capitalization could ascend to $15 trillion - A 450% hike from its current figures.
More cryptos for institutional investors, thanks to ETF approvals
Key points:
Almost 40% of institutional investors are exposed to crypto assets in 2023, compared to 31% in 2021.
Cryptos enjoy a +10% share in the portfolios of a third of all market respondents.
News - According to a survey by KPMG in Canada and the Canadian Association of Alternative Assets & Strategies, institutional investors have become increasingly positive about cryptocurrencies.
The survey delved into the factors that contributed to the increasing appeal of cryptocurrencies for institutional investors. Notably, 67% of respondents mentioned maturing market and custody infrastructure, while 58% cited strong market performance.
ETF approvals play a part - The approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) in January of this year played a major role in making this class of investors more confident in the future of cryptocurrencies.
According to another poll conducted by the Digital Assets Council of Financial Professionals, 35% of financial advisors have started recommending cryptocurrencies to their clients, a marked breakthrough compared to just 21% in 2022.
Countries embrace crypto - Regulatory clarity around cryptocurrencies in many countries across the world, particularly in the U.S., has also played a huge role in helping institutional investors embrace digital assets.
For example, Hong Kong approved Bitcoin and Ethereum ETFs months before the U.S did, with Hong Kong since seeing a major uptick in investor interest.
Bitcoin, Ethereum soar - Bitcoin, the world's foremost cryptocurrency by market capitalization, has seen a nearly 60% surge in its value year to date, building on a 150% surge in 2023. Similarly, Ethereum, which ranks second in market capitalization, has recorded an approximate 60% hike in 2024.
More stories from the crypto ecosystem
Interesting facts
A report by Triple A revealed that from 2015 to 2023, Bitcoin appreciated by over 173,000%, with a projected annual growth rate of 56.4% from 2019 to 2025. The cryptocurrency market as a whole has an estimated annual growth rate of 7.99%.
The report also claimed that the cryptocurrency market is expected to hit a value of $4.94 billion by 2030. The Asia-Pacific region is expected to perform the best, with a 14.5% annual growth rate.
India reportedly has among the highest number of crypto owners in the world. Approximately one in five customers is female, and most are in the 18-34 years age bracket. However, Indian govt.’s tax policies have led to approx. five million cryptocurrency traders relocating their transactions offshore.
Top 3 coins of the day
Notcoin (NOT)
Key points:
NOT had a bullish market structure on the lower timeframes, having crossed the $0.0054 resistance zone recently.
$0.006, $0.0064, and $0.0068 are next targets for buyers.
What you should know - Since its launch on 16 May, Notcoin has recorded a 50% fall in its price. However, there is still bullish conviction in the market, as Open Interest grew from $41 million to $61 million in the last 24 hours. During this time, NOT’s price appreciated by 10%. It breached its lower high (the $0.00544 level) on 22 May and formed a higher low at $0.00493. In doing so, it hinted at a bullish trend shift. However, in a spot of unwelcome news for excited investors, Notcoin’s OBV was not able to climb past a local session - A sign of weak buying pressure. Also, the spot CVD did not register an uptrend. If these trends turn bullish, then $0.006, $0.0064, and $0.0068 will become the next targets for buyers.
Floki Inu (FLOKI)
Key points:
FLOKI just 17% away from its $0.0003365 ATH.
Memecoin can test its yearly high of $0.00031 again.
What you should know - With a 2.56% hike in the last 24 hours, FLOKI’s ongoing pump has bulls quite excited for its future prospects. Notably, the memecoin has broken back to the north of a short-term upward trend channel. This means that a near-term test of its yearly highs above $0.00031 may be on the cards. This desire to hit its ATH prices has been spurring bulls to buy even more FLOKI. Social sentiments around FLOKI have been on the rise too, owing to its recent listing on Coinbase Perpetuals. The RSI stood at over 67, showing that bullish sentiments were rife. This was echoed by the Fear and Greed Index with a reading of 72.
dogwifhat (WIF)
Key points:
WIF rose by nearly 10% in the last 24 hours, taking its price to $3.29.
If this bullish momentum continues, WIF can retest its May highs of $3.60.
What you should know - Popular memecoin dogwifhat [WIF] hiked by 9.25% in the last 24 hours, taking its price closer to its May ATH of $3.60. Its volume climbed by 50% too. However, it remains to be seen whether WIF can cross its ultimate ATH of $4.85, attained on 31 March. For that to happen, the altcoin must firmly cross $3.30, while its Open Interest surges. Worth pointing out though that its Open Interest appreciated by 13% while its price surged - A sign that its rally may continue.
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