The recent limited price of Bitcoin (BTC) range between $ 94,000 and $ 100,000 has perplexed many market participants.
While the largest cryptocurrency historically shows strong directional movements followed by consolidations of months, known as stairs price movements, this time it feels different. In general, consolidations are followed by a break. In contrast, now the range has been reduced. In December it was $ 90,000- $ 110,000.
Attendees of the consensus last week Hong Kong shared the feeling, with some prominent market manufacturers and industry figures that suggest that the unbridled memecoin frenzy is a key reason behind the calm in BTC and the widest market of Altcoin , which feels similar to the dazzled price action seven years ago.
“The market has been very saturated with memecoras launches, and cryptographic natives are a bit exhausted for this,” said Evgeny Gaevoy, CEO of the Wintermute market leader, at the conference.
Tokens such as President Donald Trump and Libra Token promoted by Argentine President Javier Milei tend to extract liquidity from the most established cryptocurrencies, Gaevoy said, with merchants who buy those who at the expense of other currencies.
Such stagnant BTC price behavior is a reminiscence from September to October 2018, when the range hardened for successive weeks, which was finally resolved between $ 6,000 and $ 6,400.
However, it is not a totally parallel situation. That happened during a bearish market, after a strong decrease in Bitcoin’s record of almost $ 20,000, which makes the range something justifiable as investors confidence decreased. This time, BTC is only around 12% below its historical maximum.
Presidential Memecoins
Three days before its inauguration of January 20, Trump debuted his official file, Trump, which reached a market capitalization of more than $ 12 billion in just 48 hours. Its decrease was equally fast, and the capitalization of the market had crashed to almost $ 3 billion earlier this month, according to Coingcko data.
The interesting thing is that the total capitalization of the cryptographic market remained largely without changes in almost $ 3.5 billion during the booming cycle. That is a sign that Memecoin did little to attract new capital to the market. In other words, money simply emigrated from BTC, Sol de Solana and other coins.
In addition, while some wallets that invested early earned a lot of money, around 800,000 lost a total of $ 2 billion by selling in a loss or retention as prices crashed, according to Chainysis.
Something similar was developed during the Fiasco de Libra earlier this month, which destroyed $ 251 million in investor money and became a net destroyer of wealth for the cryptography market.
That is probably the reason why the founder of Abraxas Capital Management, Fabio Frontini, said Memecoins should be prohibited. I was talking during a fast fire round in the session “Wall Street A Crypto” A consensus.
Jason Atkins, commercial director of Auros, said that the fact that Memecoins is sucking the liquidity of the other market sectors shows how fragile is the liquidity group.
“It is clear that adoption is still at an early stage,” Atkins said in an interview. “The number of participants remains relatively low, and the fact that a high -profile token launch can send shock waves throughout the market shows how fragile it is the liquidity group. It is a clear sign that the broader market It lacks sufficient depth and stability. “
Those are key requirements to attract more institutional interest, he said.
“Institutional investors are actively exploring how they can commit to this space. But they are cautious. They need to see a more mature and stable market that can handle larger volumes without being interrupted by speculative activity and based on memes.”
Bitcoin address
The opinions mixed on what happens later for the price of BTC.
Several consensus delegates said the meme frenzy and the strange stability in BTC are not healthy. Such rank plays often end with a downward movement, they said. That is what happened in 2018, when consolidation ended with a strong decrease.
On the other hand, Memecoin’s saturation is eclipsing positive news on the regulatory front, Gaevoy of Wintermute said.
“People do not necessarily appreciate that we have many positive news. Noting completely.
ETF of Altcoin?
The regulatory environment includes the change of administration and exit of the United States of Gary Gensler of the Bag and Securities Commission.
Several emitters have now submitted SEC requests for funds quoted in the stock market (ETF) linked to Solana’s Sol, XRP, Dogecoin (Doge) and Litecoin (LTC).
To date, the regulator has approved only the ETFs of Bitcoin and Ether Spot, assuming that the CME surveillance system for Bitcoin and Ether Mitiga futures concerns about price manipulation. If CME futures are seen as a previous requirement to obtain the approval of ETFs linked to digital assets, it is worth noting that the broader altcoins still do not have that privilege.
Gaevoy does not agree.
“It is a relic of the previous leadership of the Sec. I would definitely not surprise me if Solana and another 10 main tokens excluding Stablecoins are approved,” he said.
