Bitcoin and meme coins continued their resurgence this week, erasing some losses made earlier this month. Bitcoin neared the crucial resistance point at $65,000, while meme coins like Pepe, Dogwifhat (WIF), Brett, and Jasmy were among the best performers.
Pepe token rose for three straight days, moving to its highest point since June 29th and jumping by over 60% from its lowest point this month. This rally happened in a high-volume environment. Data by CoinGecko shows that its $1.5 billion volume was higher than that of Dogecoin and Shiba Inu combined.
Dogwifhat (WIF) price also jumped to $2.17, its highest point since July 3rd and almost 50% from its lowest point this year. Brett soared to $0.15, while Jasmy, popularly known as Japan’s Bitcoin, surged to $0.03.
Pepe vs. Brett vs. Dogwifhat vs. Jasmy
Trump odds of victory
The recent surge in these tokens can be attributed to the events of last weekend in the United States, where Donald Trump was shot at a Rally in Pennsylvania. This event may have influenced the market’s perception of Trump’s chances in the upcoming general election, especially if pitted against Joe Biden.
Following these events, prominent billionaire businessmen such as Elon Musk and Justin Sun publicly expressed their support for the victim, Donald Trump.
As a former president, Donald Trump has been vocal in his support for the crypto industry and has even been involved in the launch of several NFTs. Data indicate that he holds a crypto portfolio valued at over $10 million.
Trump has recently voiced his stance on self-custody and Bitcoin mining, further solidifying his alignment with the crypto industry. Consequently, his potential victory is viewed as a positive development for the crypto industry, with expectations of a shift in regulatory leadership if he were to win, potentially replacing SEC’s Gary Gensler with a more crypto-friendly regulator.
Nonetheless, it’s important to acknowledge that there is considerable time between now and November, particularly regarding developments within the Democratic party. Some analysts speculate that Joe Biden may step down and make way for a younger candidate with the ability to energize the Democratic voter base.
Dovish Federal Reserve
Another reason meme coins like Pepe, Brett, Dogwifhat, and Jasmy are soaring is the rising hope that the Federal Reserve will start cutting interest rates later this year.
In a statement on Monday, Jerome Powell welcomed the recent inflation numbers, which showed that inflation continued falling in June.
He is also concerned about the labor market, which showed that the jobless rate rose to 4.1%, its highest point since 2021. Therefore, analysts believe that the Federal Reserve will continue cutting interest as soon as July.
Risky assets like technology stocks and cryptocurrencies do well when the Fed is slightly dovish. Rate cuts will likely lead to rotation from low-risk assets like money market funds to risky ones like crypto.
Bitcoin balances in exchanges fall
These tokens jumped as the volume of Bitcoin exchange balances dropped, and they are nearing their lowest point this year. This performance means that the recent selling by Mt.Gox wallets, Bitcoin miners, and the German government has not had a major impact on the crypto industry. It is a sign that these coins were absorbed well by investors.
Therefore, Bitcoin bounced back as investors moved past these sales. Also, recent data shows that inflows in spot ETFs continued this week, with the iShares Bitcoin ETF seeing more demand. Memecoins do well when Bitcoin is in an uptrend.
