23 April, 2024

Analyst Reveals Shift Towards Memecoins as Bitcoin Struggles Below $30K

15 Aug, 2023

14 Nov, 2023

  • Santiment’s report shows a crypto focus shift to memecoins amidst a market decline.
  • As Bitcoin struggles below $30K, Santiment finds trader fatigue affecting volume.
  • Jacobi launched Europe’s first Bitcoin ETF amid a general crypto market slowdown.

In their mid-August report, Santiment, the crypto analytics firm, reveals that the attention of the cryptocurrency crowd has hurriedly shifted towards memecoins, despite the skepticism of long-term traders. Santiment, in an X post, reports that despite this rapid shift, it’s crucial to be mindful of such trends and monitor Bitcoin’s MVRV. 

In the same vein, Santiment’s Brian Quinlivan has shed light on the market’s recent performance, which, although in decline, has seen some exceptions in the top 100 market cap projects. According to the report, Bitcoin’s value has faced some challenges, briefly crossing the $30,000 mark a few times in August, only to fall back to $29.6K. 

In the broader scope, over 30 days, most projects in the crypto market are experiencing a decline, with a few notable exceptions, such as Shiba Inu, Hedera, Maker, Xin Fin, and Kaspa. According to Brian, these tokens have shown resilience against the general downtrend and have stood out among the top 100 market cap projects.

Furthermore, Brian highlights that trading volume is visibly tapering off, which could be attributed to growing trader fatigue. The sentiment is naturally tied to the performance of the largest crypto assets, which drive the overall sentiment and interest in the market. These insights indicate that the industry may be entering a period of consolidation and subdued activity as traders assess the market’s next move.

This slowdown in the cryptocurrency market comes amidst other developments in the digital asset space. London-based Jacobi Asset Management, for instance, has launched Europe’s first spot bitcoin exchange-traded fund (ETF) on Euronext Amsterdam. Regulated by the Guernsey Financial Services Commission (GFSC), the Jacobi FT Wilshere Bitcoin ETF trades under the ticker “BCOIN,” with Fidelity Digital Assets providing custody and trading firm Flow Traders operating as the market maker.

Interestingly, this ETF launch comes after a delay. Although Jacobi had initially received approval for the fund in October 2021 and planned to list it in 2022, the listing was postponed due to unfavorable circumstances in the digital asset market, including the collapse of the Terra ecosystem and the bankruptcy of cryptocurrency exchange FTX.

Currently, Bitcoin is priced at $29,338.67, according to CoinMarketCap, with a trading volume of $12,524,515,160 over the last 24 hours. The leading cryptocurrency has a market cap of $570,874,036,281 and a circulating supply of 19,458,075 BTC coins out of a maximum supply of 21,000,000 BTC.

It’s clear from Santiment’s report and the developments in the digital asset space that the cryptocurrency market is at a crucial juncture. Whether the focus on memecoins, the new ETFs, or the general decline in trading volume will lead to a resurgence or further stagnation remains to be seen.



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