Meme Coins Rally as Bitcoin (BTC) Price Jump Inspires Market-Wide Bounce

The market rally inspired by a jump in Bitcoin's price has impacted meme coins, boosting several tokens to new highs.

The cryptocurrency market continues to witness a rally, largely driven by a surge in the price of Bitcoin (BTC). This price movement has had a significant impact on meme coins, leading to new highs for several tokens.

Meme coins across various categories, including dog-themed, cat-themed, political, and Solana-themed assets, have seen fresh inflows as funds continue to enter the market. The total market cap for meme coins currently stands at $67.5 billion, surging 2.8% in the last 24 hours and showing a wider increase of 22% over the past 30 days.

The average daily trading volumes are also above normal at $9.9 billion.

Tokens Ignite on BTC Price Impact

Over the years, a substantial increase in the price of Bitcoin has often led to more gains for meme tokens. This was evident during Q1 2024, a period renowned for the market frenzy surrounding meme coins and the large inflows that propelled them to bullish peaks.

A key factor contributing to this occurrence is the volatility of meme tokens, which can be easily swayed by market sentiments. Conversely, a slight dip can lead to widespread losses for these tokens in a short span of time.

Given that most meme coins lack any inherent utility, their price movements tend to follow the broader market trends closely. With its lower prices, any uptick in the market leads to more substantial price jumps for meme coins.

Apart from the approval of spot Bitcoin ETFs, which saw BTC hit a new all-time high, other factors, such as policy rate cuts by central banks, have also spurred a positive response in the meme token market.

Furthermore, the United States election, which is poised to introduce fresh crypto legislation in the country, will likely continue to ignite meme coins, as witnessed in recent weeks.

The fund flows into these tokens are linked to Bitcoin due to the fact that meme coins are largely traded on sentiments without any utility.

Meme Coins Notch Double-Digit Gains

A glance at the charts reveals several meme coins outpacing the market with double-digit gains, while some have even soared over 100%.

In the last seven days, we see DOGE surging 21.7%, whereas POPCAT and NEIRO have witnessed gains of 14.4% and 18.2%, respectively. SHIB, WIF, and other assets have also seen decent gains in the same period, boosting the meme coin ecosystem.

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