Meme coins and artificial intelligence (AI)-linked tokens have surged in the past 24 hours, reversing weekend losses experienced by bitcoin and other major tokens.
Bitcoin (BTC) saw a 3.3% increase, trading around $66,600 in European morning hours. Reports of prospective ETF providers receiving approval to offer bitcoin and ether exchange-traded funds in Hong Kong contributed to the positive sentiment.
Surge in Meme Coins and AI Tokens Without Clear Catalyst; Layer-1 Tokens Lag Behind
Solana meme coins, dog-themed meme coins, and Base network meme coins recorded jumps of over 15% on average, according to CoinGecko category data. Similarly, AI tokens experienced a significant surge of over 17%. Despite the notable gains, there was no apparent catalyst for these movements.
Layer-1 blockchain tokens, including ether (ETH), Solana's SOL, and Avalanche's AVAX, performed less favorably, with an average rise of 5.5%. However, the broad-based CoinDesk 20 index, excluding stablecoins, saw a nearly 6% increase.
Whale Activity Sparks 80% Surge in MEW and SLERF Meme Tokens, According to Lookonchain Analysis
On-chain analysis tool Lookonchain reported in an X post that whales had acquired millions of dollars worth of meme tokens, such as cat in a dogs world (MEW) and slerf (SLERF), leading to an almost 80% increase in their prices over the past 24 hours.
Bitcoin's Weekend Dip Triggers $2 Billion Liquidation, Largest Since March
Bitcoin's drop from last week's highs around $70,500 to as low as $62,800 over the weekend resulted in $2 billion in futures positions being liquidated, the most since March. A significant portion of these positions, over $1.5 billion, were betting on higher prices.
This leverage flush caused open interest, representing the number of unsettled futures contracts, to decrease by $13 billion since Friday, indicating the closure of bets.
Traders Brace for Bitcoin Halving as $2 Billion Liquidation Follows Weekend Dip
Some traders anticipated the price fall ahead of the halving, a highly anticipated event scheduled for April 20, which will halve the rewards offered to network miners. Matteo Greco, a research analyst at digital asset investment firm Fineqia International, highlighted historical trends, noting that halving events often trigger short-term "sell the news" reactions before and after the event.
Additionally, Greco pointed out a net outflow of $85 million from Bitcoin Spot ETFs during the week, signaling increased profit-taking and investor caution following the strong uptrend in both Q4 2023 and Q1 2024.
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