Unprecedented Shifts Mark Bitcoin Halving Cycle as 'Weirdest' Bull Market Yet
Summary:
The current Bitcoin halving cycle has led crypto analysts to label it the strangest bull market to date, due to an early Bitcoin record high and a significant influx into memecoins. Traditionally, liquidity first funnels into Bitcoin, then to Ethereum and other high-cap coins before trickling down; however, this market has seen a direct flow from Bitcoin into memecoins. Memecoin's total capital hit $70 billion on April 1, driven by both newly launched and older memecoins. Additionally, Bitcoin reached an all-time high before the halving, contrasting with previous cycles where the all-time high came after the halving.
Analysts studying the crypto industry are labeling the current Bitcoin halving cycle as the most bizarre bull market to date. This comes after an unexpectedly early Bitcoin record high, accompanied by a large influx into memecoins. 'ChainLinkGod', otherwise known as Zach Rynes, a community liaison for Chainlink, described the bull market's oddity to his 171,000 followers on X on April 1.
Traditionally, bull runs witness liquidity funneling into Bitcoin first, followed by Ethereum and other big-cap coins, before trickling down the chain. However, Rynes noted that this market cycle deviated from the typical trend by skipping a few normal stages. Liquidity moved directly from BTC to memecoins, an unusual shift that stray from previous cycles.
On April 1, Memecoin’s total capital hit $70 billion, with the surge predominantly driven by the new tokens, 'dogwifhat' (WIF) and Book of Meme (BOME), based on Solana and age-old memecoins like Pepe (PEPE) and Bonk (BONK). The Base layer-2 network of Coinbase is also experiencing a boom of Memecoin speculation, with its newly launched native token DEGEN skyrocketing by a staggering 2,800% over the previous month. DEGEN, an informal token, was disbursed on the decentralized social network, Farcaster.
Rynes also mentions that market principles are currently taking a backseat: "We are in an attention economy now, led by individual narratives rather than authentic fundamentals.” This sentiment aligns with the perspectives of Ethereum expert Anthony Sassano, who stated on April 1, that after nearly ten years in crypto he is confident enough to say, “this is, without doubt, the strangest bull market crypto has ever experienced.”
Adding to the strange climate of this market cycle, Bitcoin reached a record high before the halving, a historical anomaly noted by analysts. In former cycles, the Bitcoin record high was recorded in the year post-halving. On March 14, the asset reached $73,734, and with the Bitcoin halving just 18 days away now, due on April 20, experts foresee that the pre-halving dip has already passed. Moustache, a technical analyst, pointed out on April 1, that BTC had regained an important Fibonacci ratio level seen in previous cycles, but noticeably, before the halving.
Published At
4/2/2024 6:50:12 AM
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