Memecoins
Here’s why Shiba Inu, Pepe and Milady Meme Coin (LADYS) are flying
Meme coin prices have made a strong comeback this week after spending the past few months going sideways or plummeting. Shiba Inu The token jumped to a high of $0.000026 on Wednesday, up 43% from its low point in April.
Pepe, Shiba Inu and LADYS are flying
Pepe price rose to a record high of $0.000142, up 256% from April lows. As I wrote Here, this bounce occurred after the token formed an inverse head and shoulders pattern. It has become one of the best-performing cryptocurrencies this year, jumping more than 1,500% from its year-to-date low.
Meanwhile, the Milady Meme Coin (LADYS) token jumped to $0.0000021, more than double its low point in April. Other meme coins like Floki, Dogecoin and Book of Meme (BOME) have all seen a strong jump recently.
There are a few reasons why these tokens have risen. First, there are signs that whales are hoarding some of these tokens. For example, on-chain data shows that Block Tower Capital purchased 202 billion tokens worth over $2.2 million last week.
Bitcoin ETF Inflows
Secondly, Bitcoin ETFs have recently started to experience strong inflows. Data shows that iShares Bitcoin Trust (IBIT) has added over 277,000 coins while FBTC, ARKB, BITB and BTCO have over 159,000, 48,000, 36,000 and 7.5,000 Bitcoins. Overall, Bitcoin ETFs now hold over 842,823 coins worth over $58 billion.
This trend could continue in the coming years as more companies and hedge funds seek exposure to the coin. Historically, Bitcoin has outperformed stocks, and some analysts believe this trend will continue as the supply-demand imbalance continues.
Meme coins like Floki, Dogecoin, and Milady Meme Coin work well when there is high demand for Bitcoin. The theory of many traders is that it is always cheaper to buy these tokens instead of Bitcoin, which trades at over $70,000.
Third, these tokens jumped following last week’s US inflation report. According to the Bureau of Labor Statistics (BLS), the headline consumer price index (CPI) fell to 0.3% month-over-month and 3.4% year-over-year.
If this trend continues, it means the Federal Reserve will choose to do so start cutting interest rates to support a slowing economy. Consumer confidence has plummeted, retail sales have slowed and manufacturing and services PMIs have moved into contractionary territory.
Meme coins and other risky assets like stocks do well when there is hope that the Fed will start cutting interest rates. This explains why US stocks jumped to record highs, with the Dow Jones above $40,000.
Therefore, meme tokens such as Floki, Bonk, Pepe, Milady Meme Coin, and Shiba Inu are likely to continue to do well in the short term.