BTC struggles to consolidate as Trump's remark sparks surge in MAGA coin
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BTC struggles to consolidate as Trump's remark sparks surge in MAGA coin
The next upward trend may have already begun.
Navigating Web3 tides with focused insightsBy TechFlow Mary Liu
The cryptocurrency market remained volatile on Thursday, with Bitcoin regaining support above $62,000 during afternoon trading. Most altcoins rose, led by meme coins tied to the U.S. election narrative.
According to Bitpush News data, Bitcoin rebounded from a daily low of $60,623 in the early hours, rising 3.4% to a high of $62,663 before pulling back to the $62,500 support level. At the time of writing, BTC was trading at $62,395, up 1.15% over 24 hours.
Altcoins showed mixed performance throughout the day, with a slight majority of the top 200 tokens by market cap posting gains. Akash Network (AKT), Livepeer (LPT), and Arweave (AR) surged 17.4%, 15.3%, and 11.9% respectively. Render (RNDR) and Toncoin (TON) both climbed 11%. FTX Token (FTT) saw the largest drop, falling 7%, followed by Tellor (TRB) down 5.4% and GuildFi (GF) down 4.2%.
Analysts at Secure Digital Markets said: "Bitcoin has bounced from recent lows this morning and is preparing to challenge its previous peak near $65,000. Overall trading volume across spot and derivatives markets has declined for the first time in seven months, dropping 44% to $6.58 trillion. This decline is attributed to escalating geopolitical tensions and reduced investment in U.S.-listed spot ETFs, casting a shadow over the crypto market."
The U.S. labor market continued to cool, with initial jobless claims rising by 22,000 to 231,000—the highest level since August—boosting U.S. equities. Many view this as a positive signal, suggesting one or more rate cuts could still occur in 2024, despite several Federal Reserve officials recently reiterating that rates may need to stay higher for longer to combat inflation.
However, Bert Dohmen of Dohmen Capital Research stated that the recent sharp rise in M2 money supply means the Fed will likely be unable to deliver the anticipated rate cuts this year, and investors should begin preparing for this scenario.
Dohmen said the Fed is "in a bind," forced to finance record government deficits while simultaneously fighting persistent inflation. "The Fed is compelled to hit the accelerator to fund the Treasury’s record deficits," he said. "They know it will fuel inflation, but they have no other choice."
At closing, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all advanced, gaining 0.51%, 0.85%, and 0.27% respectively. As sentiment improved, the U.S. dollar index fell 0.5% from its daily high, trading at 105.218 at press time, while the yield on the 10-year U.S. Treasury note dropped 142 basis points from its intraday peak to 4.457%.
Meme coin MAGA surges
Following comments from Donald Trump, the Republican presidential candidate, on cryptocurrencies yesterday, the Trump-themed meme coin MAGA (TRUMP) surged 78% on May 9. Its 24-hour trading volume jumped 620% to $281.8 million, giving TRUMP a market capitalization of $281.8 million and ranking it #248 on CoinGecko. At press time, the token had become the 13th-largest meme coin by market cap.
Trump's campaign currently does not accept crypto donations, but during an impromptu Q&A session at a dinner event yesterday, he expressed openness. When asked, "Can we donate using cryptocurrency?" he replied: "If you can't do it now, I’ll make sure you can."
TradingView data shows MAGA trading at $6, up 46% over the past 24 hours.
Other U.S. political-themed tokens also gained on May 9, led by Donal Tremp (TREMP), which tripled in value, surging 136% over the same period. Independence Token (RFKJ)—a token supporting Robert F. Kennedy Jr.'s presidential run—rose 24.4%.
Meme coins have seen massive growth in 2024, emerging as the top-performing crypto narrative in the first quarter.
According to anonymous X user Crypto Koryo, CoinMarketCap listed a record 138 ERC-20 meme coins in April 2024, a 666% increase from 18 in April 2023.
Analysts noted: "The number of ERC-20 memecoins is set for parabolic growth in 2024. Last month alone, 138 new memecoins were added to CoinMarketCap, compared to just 18 in April 2023."
At press time, CoinMarketCap lists over 2,230 meme coins, with a total market capitalization exceeding $52.325 billion, accounting for 2.15% of the global cryptocurrency market cap.
The overall cryptocurrency market cap stands at $2.31 trillion, with Bitcoin’s dominance at 53.3%.
“Next upward trend may have already begun”
Market analyst Rekt Capital suggested the next bullish phase might already be underway, noting that “over the past year and a half, long-term downtrends ending with drawdowns exceeding -20% have often signaled key price reversals ahead.”
He added that the fact that Bitcoin “is still holding range lows as support” following last week’s bearish candle suggests a bottom may have formed.
Twitter influencer il Capo Of Crypto also believes Bitcoin may be forming a solid base at current levels and could soon resume its uptrend. He tweeted: “After moving away from the range low, price rebounded to touch resistance and is now retracing into an interesting support zone, potentially forming the first higher low.”
The analyst noted: “There is strong demand between $59,000 and $61,000, and indicators are mostly bullish, so a bounce is likely. If BTC breaks above the $65,000 resistance, I’ll be targeting $68,000–$69,000 as the first goal and $74,000–$75,000 as the second.”
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