The cryptocurrency market is experiencing a notable shift, with Bitcoin (BTC) and Ethereum (ETH) seeing minor declines, while meme coins like Shiba Inu (SHIB) have posted significant gains. This trend is primarily driven by Asian investors responding positively to anticipated spot Ethereum ETFs. Although the market remains largely stable following last week’s rally, the performance of meme coins stands out.
Why Are Bitcoin and Ethereum Falling?
Over the past 24 hours, Bitcoin and Ethereum have each lost over 1% in value. Major cryptocurrencies such as Solana (SOL), XRP, and BNB have shown minimal changes, indicating a stagnant market. In contrast, meme coins have bucked this trend, with Shiba Inu soaring by up to 12%.
The spike in meme coins like Dogecoin (DOGE) and Shiba Inu began on Tuesday afternoon in Europe, coinciding with a 19% pre-market trading increase for GameStop (GME), which historically influences meme coin trends.
What Fuels Meme Coin Gains?
Rennick Palley, co-founder of crypto fund Stratos, pointed out that this rise is driven primarily by Asian investors, who typically see significant price increases during trading hours that align with midnight in the US. Palley also linked this activity to excitement over a potential spot Ethereum ETF approval in the US and a perceived shift towards more crypto-friendly regulations.
The anticipation of regulatory changes has bolstered investor sentiment, further propelling the meme coin rally. Alongside Shiba Inu, other meme coins like PEPE and MOG have also seen substantial increases, with some doubling in value over the past week.
User-Usable Inferences
- Monitor Asian trading hours for potential price movements in meme coins.
- Keep an eye on regulatory developments regarding Ethereum ETFs in the US.
- Watch for correlations between meme stocks like GameStop and meme coin performance.
- Be cautious of speculative bets driving meme coin values.
Meanwhile, Bitcoin continues to trade within a declining range. According to Alex Kuptsikevich, a senior market analyst at FxPro, Bitcoin needs to break and close above $70,000 to overcome its current downtrend. Until such a breakout occurs, Bitcoin is expected to retreat to the $67,000 range.