It appears that in a “weird” bull market, liquidity has skipped a few steps and moved directly from Bitcoin to memecoins, according to analysts.
Following an untimely peak in Bitcoin and a significant rush into memecoins, experts in the cryptocurrency space are referring to the current cycle of Bitcoin halving as the “weirdest” bull market ever.
Zach Rynes, also known as “ChainLinkGod,” the Chainlink community liaison, wrote to his 171,000 followers on X on April 1st, stating, “this bull market has been weird.”
During previous bull runs, money would initially pour into Bitcoin, then into Ethereum and other coins with large capitalizations, and so on down the chain.
But the market “skipped a couple of steps that we have seen with previous cycles,” noting that transfers from Bitcoin to memecoins are “a bit unusual.”
On April 1, the overall capitalization of memecoins soared to $70 billion, mostly due to increases in recently released tokens like Book of Meme (BOME) and ‘dogwifhat’ (WIF), which are based in Solana, as well as earlier memecoins like Bonk (BONK).
Memecoin speculation has also grown very active on the Coinbase layer-2 network Base.
One example is the recently introduced Base-native token DEGEN, which has increased by an astounding 2,800% in just the last month. Unofficial tokens known as memecoins were given out to users of the decentralized social network Farcaster.
On April 1, Ethereum instructor Anthony Sassano expressed a similar opinion, stating that “I can say with full confidence that this is, by far, the weirdest bull market crypto has ever had” following about ten years in the industry.
He continued by saying that until the whole market rises at once, retail will not be present in any meaningful way:
“Not these isolated, sector-specific pumps that simply involve a hot ball of money rotating around, and are very obviously pushed by crypto natives.”
The fact that Bitcoin achieved its all-time high prior to the halving is another element contributing to the peculiarities of this market cycle. The year following the halving has historically marked the arrival of the Bitcoin all-time high.
The asset reached $73,734 on March 14 and the April 20 BTC halving is now only eighteen days away. The pre-halving retrace is already expected to be completed, according to analysts.
Technical analyst Moustache pointed out on April 1 that Bitcoin has recovered a significant Fibonacci ratio level from earlier cycles, but this time it was prior to the halving.
April 2024, Cryptoniteuae
