Bitcoin V-shaped recovery, Biden and Trump-themed meme coins dominate the rankings
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Bitcoin V-shaped recovery, Biden and Trump-themed meme coins dominate the rankings
The crypto market rebounded, recovering most of the losses from the previous day's sell-off.
Navigating Web3 tides with focused insightsBy Mary Liu, Bitpush News
Crypto markets edged higher on Wednesday, fueled by optimism over potential Federal Reserve rate cuts this year.
Federal Reserve Chair Jerome Powell indicated that the central bank could begin cutting interest rates in 2024, provided Fed officials gain "greater confidence that inflation is moving sustainably toward its 2% goal."
Cryptocurrencies rebounded on Wednesday, recovering most of the losses from the previous day's sell-off. According to Bitpush News data, Bitcoin rose 3.9% to $66,219, while Ethereum gained over 8% to $3,829.55 at the time of writing.
Other altcoins followed suit as Bitcoin and Ethereum recovered. BNB surged 8%, while Solana climbed 6%.
Crypto-related stocks also regained momentum. Coinbase and MicroStrategy rose 10% and 18% respectively. Cipher Mining surged 27%, while Iris Energy and CleanSpark gained 6% and 8%. Among mining firms, Marathon Digital edged up 1.6%, while Riot Platforms dipped slightly by 1%.
Meme Coins Tied to Biden and Trump Surge in Popularity
The meme coin sector has seen rapidly shifting trends. After Joe Biden and Donald Trump both secured presidential nominations following the 'Super Tuesday' primaries, Solana-based meme coins led the rally.
According to CoinMarketCap, JEO BODEN (BODEN), a token inspired by Biden’s name, surged over 4,700%. At the time of writing, the asset traded at $0.058, with a 24-hour gain exceeding 17-fold and trading volume surpassing $40 million.
The MAGA (TRUMP) token linked to Trump rose nearly eightfold. Initially launched in summer 2023, the token saw modest trading volumes for months. However, it began surging as Trump made headlines amid ongoing election coverage.
It's worth noting that newly issued meme coins carry high risks. Investors should conduct their own research (DYOR) to avoid falling victim to rug pulls or exit scams.
Solana-based newcomer Dogwifhat outperformed established players like DOGE and BONK, rising 48%.
Rich Rosenblum, co-founder and president of digital asset trading firm GSR, said that despite recent gains in meme coins, retail participation in the crypto market remains far below levels seen during Bitcoin’s last peak in 2021.
Rosenblum added that as Bitcoin reaches new highs, some investors may sell portions of their holdings to take profits and reinvest in other areas of the crypto market—such as meme coins and NFTs—but meme coin trading remains highly speculative.
"V-Shaped" Recovery Paves Way for New Highs
On Tuesday, Bitcoin hit a new intraday high of $69,210—the first since November 2021—before plunging sharply. According to a chart shared by Swissblock, Bitcoin quickly rebounded above $62,000, signaling the start of a fresh upward trend targeting the $76,000 level. "V-shaped recovery, and continuing towards new all-time highs," Swissblock said in a Telegram update on Wednesday.
David Wells, CEO of Enclave Markets, said: "To me, yesterday looked like a bullish major correction, which is quite typical when reaching multi-year highs. There might be a retest of the peak; if we break through, given the large options positions, things could get interesting."
David Duong, Head of Institutional Research at Coinbase, said: "Initially, it appeared primarily as a spot-driven profit-taking move, as open interest in perpetual futures didn't decline, nor did funding rates. But then price action caught up with some significant long liquidations and reset the market. I think unless there's a major external shock, we're unlikely to see such a sharp drop again in the near term."
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