Bitcoin surged to an unprecedented $70,000 before swiftly pulling back, as traders redirect their focus towards fringe tokens known as memecoins in pursuit of higher returns.
Memecoins like Dogecoin and Pepe experienced substantial double-digit gains on Friday, contributing to the remarkable rallies witnessed throughout the week. Meanwhile, Ether, the second-largest cryptocurrency by market value, has surged approximately 16% this week, outperforming its larger counterpart.
Chris Newhouse, a DeFi analyst at Cumberland Labs, noted that with Bitcoin stabilizing at current levels and Ether exhibiting relatively stronger performance in the short term, attention is likely to shift towards altcoins and emerging narratives.
Following its ascent to $70,000 on Friday, Bitcoin swiftly retreated to trade around $68,000, while Ether approached the $4,000 mark for the first time since December 2021.
Leo Mizuhara, founder and CEO of decentralized finance institutional asset management platform Hashnote, expressed optimism about Bitcoin potentially reaching $80,000 by the end of the month, attributing it to the anticipated influx of FOMO players and increased retail participation spurred by ETFs.
Ether is gaining momentum amid growing expectations of approval from the US Securities and Exchange Commission for exchange-traded funds, following the surge in demand for Bitcoin ETFs approved in January, which has been a major driver behind this year’s significant rally in the token.
Memecoins have emerged as a favored choice among retail crypto investors and promoters, driven by the allure of massive returns despite the absence of traditional fundamentals. Tokens like Shiba Inu and Dogecoin have captured attention in previous bull markets, with PEPE, WIF, and other newcomers now positioning themselves as the next promising opportunities.
As capital continues to flow into private markets, retail investors are taking note of emerging narratives, anticipating an eventual “altcoin season” triggered by a potential rotation out of Ether and across the broader cryptocurrency ecosystem, according to Newhouse.
