Book of Meme (BOME) price has gone through baptism by fire in the past few days. The meme coin surged to a record high of $0.030 last weekend after the Binance listing. At its peak, the token had a market cap of over $1.2 billion.
It then nosedived as some of the earlier buyers took profits and as a sea of red spread in the cryptocurrencies market. The token crashed to a low of $0.0084 this week, which was about 72% below its all-time high.
Therefore, the question is whether it is safe to buy the Book of Meme dip or just sell the rip. There are three main reasons why buying the dip might make sense for now.
First, the Federal Reserve delivered an extremely dovish decision on Wednesday. In its meeting, the bank decided to leave interest rates unchanged between 5.25% and 5.50%. The dot plot pointed to three rate cuts this year, with the first one starting in June.
The dovish tone is a positive one for risky assets like Book of Meme and other cryptocurrencies. This explains why most coins and stocks have bounced back after the Fed decision. The Nasdaq 100 and S&P 500 indices surged to their all-time highs. Similarly, Bitcoin soared to $67,000 from this week’s low of $61,000.
Second, Book of Meme price may rebound because of the rising demand for meme coins. Recent data shows that meme coins have been the best-performing cryptocurrencies this year. Before the recent dive, they all had a market cap of more than $67 billion, according to data by CoinGecko. This means that there is a strong demand for these tokens.
Third, the BOME token price could rebound as focus shifts to the upcoming Bitcoin halving event, which is set to happen in April. Halving is a period where the number of Bitcoin rewards are slashed by half. In this case, halving will reduce these rewards by half from about 900 to 450.
History says that Bitcoin tends to rally ahead of halving and then retreat afterwards. And, in most cases, investors move to altcoins like Book of Meme and Solana when Bitcoin is in a strong uptrend.
Therefore, there is a likelihood that a sea of green will happen in the crypto industry ahead of the event. Book of Meme will be a top beneficiary of this price action. If this happens, the token could rebound to a high of $0.020, which is about 75% above the current level.
