- Bitcoin price narrowly beat its $69,000 former peak on Tuesday.
- Meme coins are in a load-shedding exercise with Shiba Inu barely clinging to gains.
- The liquidity could rotate into quality altcoins with strong fundamentals.
Bitcoin (BTC) price hit a new all-time high at $69,324 on Tuesday during the late hours of the Asian session. However, a correction came almost immediately amid triggered sell orders, and the sentiment spread among meme coins.
Also Read: Bitcoin price sets new ATH in USD for the first time in three years
Bitcoin price peaks but triggers meme coin market crash
Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE) and Bonk Inu (BONK) prices, among other meme coins, have plummeted with some posting double-digit losses. It comes amid a strong correlation with BTC among altcoins.
Nevertheless, trader and online analyst @Cryptomanran had warned on X, “Memes are an amazing trade but remember to take profits kids and put them into protocols that will make a difference in 5 years!” This is true considering the sector’s highly speculative nature with little usability, which makes it important to sell in time.
Nevertheless, renowned analyst @HsakaTrades believes that the ongoing downtrend seen with Bitcoin price is not natural, citing “spoofy sell orders” among whales. According to the analyst, smart money is at play and looking to buy low.
Dear noobs,
— Hsaka (@HsakaTrades) March 5, 2024
Bitcoin is NOT naturally going down. It is being pushed down via whales placing spoofy sell orders on exchanges to make noobs and risk managers sell to "buy back lower". They are stealing your bags and will make you buy back at a higher price.
Nevertheless, liquidity appears to be rotating into quality altcoins with strong fundamentals as the likes of Ethereum (ETH) and Solana (SOL) are now waking up. They stand as outliers while most altcoins flash red.
For Ethereum, the sturdy outlook is inspired by the Dencun upgrade, due on March 13. This event introduces several Ethereum Improvement Proposals (EIPs) such as EIP-4844 which allows proto-Danksharding, a feature aimed at reducing layer-2 transaction fees.For Solana, the network’s affordable gas fees relative to industry peer Ethereum is likely to inspire optimism.
let's face it, meme coins are just more fun on solana.
— 0xMQQ° (@0xMQQ) March 4, 2024
paying high gas for a swap is like, you are killing a game and you arrive at the boss room, then boom a full screen pop-up in your face saying you need to pay $69.99 to continue. it just kills the vibe.
Will meme coin rotation kick-start altcoin rally?
With the recent huge gains noted among meme coins, investors are likely going to pay attention to other altcoins, including ETH and SOL, which could cause a rally in these cryptocurrencies as well. If this development is followed by altcoin profit rotation, AI coins could, in general, see gains by association.
For the layperson, altcoin profit rotation in the cryptocurrency ecosystem refers to a phenomenon where investors shift their focus and funds between different altcoins to maximize profits. This rotation occurs as traders seek opportunities in various altcoins rather than solely focusing on Bitcoin. The profits from one crypto usually rotate into another crypto, which causes successive rallies in different sectors of altcoins.
Also Read: Ethereum Price Prediction: The long game could see ETH climb 30%
Read More: Three sectors that could thrive as 2024 bull market warms up
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto analyst says Bitcoin bottom is very close, another correction in BTC likely
Bitcoin is trading above $67,000 on Sunday after securing support at $65,000. While BTC holds its gains steady, analysts evaluate the price trend of the largest asset by market capitalization and predict a deeper correction in Bitcoin.
AI tokens could really ahead of Nvidia earnings
Amidst other narratives, AI tokens could gather momentum with the upcoming earnings result of NVIDIA next week. The $2.3 trillion company’s stock emerged as a poster child for the crypto AI sector and gains in the stock catalyzed a rally in cryptocurrency tokens.
Whale rotates capital from WIF to TREMP and BONK, Solana meme coins make comeback
Lookonchain identified a large wallet investor who rotated capital from Solana based meme coin Dogwifhat to Doland Tremp and Bonk. The two meme coins have added double-digit value to their prices in the past 24 hours, as seen on CoinGecko.
Crypto political donations surge to $94 million pre election, exceed previous elections by 13%
Crypto industry giants supported political campaigns in the US looking for pro-crypto governance in the US. A Bloomberg report from May 17 shows that crypto donors have spent $94 million in an effort to get pro-crypto regulation in the US.
Bitcoin: Is BTC out of the woods? Premium
Bitcoin (BTC) price action in the past two days has confirmed the resumption of the bull run. However, BTC needs to clear a few key hurdles before investors can go all-in.