- The current crypto market cycle, which is undergoing a heavy pullback, has largely been driven by meme coin mania and spot Bitcoin ETF hype.
- Economist and trader Alex Krüger shares his thoughts on the bizarre crypto market cycle, highlighting the dominance of meme coins and Bitcoin following the ETF launches.
- Despite the correction, large-cap meme coins still exhibit significant returns, establishing themselves as a viable asset class in their own right.
Explore the current crypto market cycle, driven by meme coin mania and Bitcoin ETF hype, with insights from economist and trader Alex Krüger.
Meme Coin Madness
According to CoinGecko, the total market capitalization of all meme coins is around $46 billion, surpassing Ripple (XRP) and Cardano (ADA) combined. They represent roughly 2% of the total crypto market. However, Krüger observes a dark side to this madness, with the market flooded with scammy meme coin launches and cash-grabbing founders since February. This has spurred a division among the crypto community, with some believing meme coins bring value, while others argue they undermine the ideals and purpose of crypto.
Sentiment Slumps
Crypto market sentiment has slumped, with the Bitcoin correction hitting 23% in a dip below $57,000. This pullback was expected and could go as low as 30%. Fellow trader Bob Loukas highlights the irony in the sentiment shift. Bitcoin investor ‘CRG’ maintains that nothing has changed macro-wise or fundamental-wise, predicting that Bitcoin will reach $100k+ much sooner than expected, which will trigger real altcoin gains. When that happens, meme coins are likely to go on a rampage again.
Conclusion
The current crypto market cycle, driven by meme coin mania and Bitcoin ETF hype, has seen significant returns for large-cap meme coins despite the market correction. However, the market has also been flooded with scammy meme coin launches, causing a division in the crypto community. As Bitcoin is expected to reach $100k+ much sooner than expected, meme coins are likely to surge again.
