Memecoin Rises Sharply As Bitcoin Struggles To Break Through $90,000

The cryptocurrency market is currently undergoing a special move, marked by a capital rotation into memecoins as Bitcoin (BTC) attempts to surpass the $90,000 mark. In the past 24 hours, the total market capitalization has fallen by 1.3%, reaching $2.9 trillion on Tuesday. However, memecoins have seen impressive growth, with the total value soaring by 9.2% to $62 billion. The Role of Memecoin in Capital Flow The rise of memecoin is partly due to the support of former President Donald Trump for the TRUMP token, which was launched at his inauguration. This support has sparked interest among investors in this market segment, reinforcing their confidence in the potential of these highly speculative assets. Bitcoin: Consolidation Below $90,000 After several unsuccessful attempts to break through the $90,000 threshold, Bitcoin fell 2% on Wednesday, stabilizing at around $86,000. This decline is more pronounced compared to the overall market (-1.3%), indicating growing interest from investors in altcoins and memecoins. Despite this adjustment, Bitcoin (ETF) exchange-traded funds continue to attract capital. As of March 14, these ETFs have seen inflows for eight consecutive days, totaling $887.47 million. Additionally, BlackRock announced the launch of the first Bitcoin ETF in Europe on Tuesday, with net assets of $50.8 billion for the BTC IBIT ETF. This expansion in Europe could strengthen institutional demand for Bitcoin. Interest is Increasingly Growing Towards Altcoin and Memecoin When Bitcoin is struggling to find its footing, traders prefer to bet on mid-cap assets and memecoins. SUI and Polygon are particularly benefiting from this upward trend. The decision to delay interest rate hikes by the Federal Reserve has fueled capital inflows into alternative cryptocurrencies earlier this week. However, bearish resistance has emerged as market capitalization approached nearly 3 trillion dollars. Since then, the inflow of funds has decreased as Bitcoin fell below 90,000 dollars. Instead of giving up on the market, traders seem to be strategically reallocating their investments into specific assets that have strong growth potential, temporarily staying away from BTC and major altcoins. Performance of Major Memecoins Memecoin dominates the market with a total market capitalization of 62.5 billion dollars. Among them, Dogecoin (DOGE), Pepe (PEPE), and Shiba Inu (SHIB) are leading: Dogecoin ($DOGE): At $0.20, DOGE has increased by 8.6% in 24 hours and 18.6% in the week. The company's market capitalization has now exceeded $30 billion. Pepe ($PEPE): At a price of $0.0000089, PEPE has increased by 12.8% in a day and 20.3% in a week, affirming its position as a sought-after stock due to its high volatility. Shiba Inu ($SHIB): With a market capitalization of nearly 9 billion dollars, SHIB is trading at 0.000015 dollars, up 12.8% daily and 19.1% weekly. Conclusion As Bitcoin continues to test the $90,000 level, the cryptocurrency market is witnessing a significant capital reallocation towards memecoins and mid-cap altcoins. The enthusiasm for these assets indicates that traders prefer high-profit opportunities when faced with BTC's consolidation phase. However, BlackRock's entry into the European Bitcoin ETF market may revive institutional demand and impact future market trends.