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Bitcoin Holds Above $64K as China Stimulus Sends Conflux’s CFX, Dog Memes Running High

Sep 26, 2024
    In Asia’s Friday market, dog-themed memecoins like SHIB, BONK, and FLOKI experienced significant gains, with SHIB and FLOKI up by 15% and BONK leading with a 17% increase, fueled by a return of risk appetite among investors.Conflux’s CFX saw an 18% rise following news of liquidity injection by the People’s Bank of China, with traders focusing on assets perceived as ‘China beta’ like CFX, dubbed the ‘Chinese Ethereum’, especially after its new support for stablecoins.Bitcoin (BTC) rose by 3%, trading above $65K with U.S. spot bitcoin ETFs seeing one of their largest inflow days at $365 million, predominantly into ARK’s ARKB, while Ethereum (ETH) experienced minor outflows but still gained 4% over the week.
As a seasoned researcher with over two decades of experience in the financial markets and a keen interest in the dynamic world of cryptocurrencies, I find Friday’s Asian market to be a fascinating blend of traditional finance and the new digital frontier.On Friday, Asian markets surged with popular cryptocurrencies like Shiba Inu (SHIB), Bonk (BONK) recording double-digit increases, while Conflux’s CFX climbed more than 18%. This surge seems to be a response to the recent liquidity infusion from China’s central bank that the market is currently processing.

According to Rick Maeda, Research Analyst at Presto Research, the market shifted into a rotation phase following the strong rally in altcoins that dominated last week’s headlines, as suggested in his note to CoinDesk.

In the sequence of rotations while seeking stories related to areas like AI and memecoins, news about China’s stimulus plan released on Tuesday shifted traders’ attention towards coins thought to be influenced by China, specifically $CFX and $PHB, which have surpassed expectations. It remains uncertain whether this trend will persist or if the market is merely searching for a new narrative-driven trade.

HashKey OTC CEO Li Liang pointed to improving funding rates as a sign of market recovery.

As an analyst, I’m observing a significant surge in the SOL and BTC ecosystems, suggesting a dominating trend towards meme coins. The overall liquidity is expanding, and while meme coins on these chains aren’t exploding like before, they are attracting increased attention from the market. Particularly on Ethereum, tokens such as $PEPE and $SHIB are gaining traction.
The SOL and BTC systems are spearheading the advancements, suggesting a significant emphasis on meme tokens since overall liquidity expands. However, unlike their counterparts on those chains, meme tokens on Ethereum, such as $PEPE and $SHIB, are also garnering increased attention from the market.

Beyond market fluctuations driven by the belief that Conflux resembles Ethereum in China, traders are also drawn to a recent development: the protocol’s new capability to work with stablecoins, thanks to a collaboration with WUSD.

Although WUSD is a less commonly used stablecoin, issued by a trust based in Hong Kong, there’s been an influx of exciting announcements about new stablecoin products from Ethena Labs (UStb) and BitGo (USDS). The financial market seems to be welcoming these developments.

Dog memes lead market

After a long period, the readiness to take on risk reappeared in the crypto market, with memecoins based on dogs taking the lead. Shiba Inu (SHIB) and Floki (FLOKI) experienced an increase of up to 15%, while bonk (BONK), built on Solana, saw the most significant growth at 17%.

Less popular canine-themed digital coins following the Bitcoin Runes protocol have experienced growth as well, suggesting that investors are becoming more willing to make riskier investments.

Memecoins thrive primarily due to their strong community involvement and tend to increase when the market shows a risk-taking attitude. They generate worth through active community interaction, humor, and common cultural references. Tokens modeled after dogs, cats, or frogs gain popularity based on what’s currently trending within social circles.

ETFs continue positive inflow run

Elsewhere in crypto, bitcoin (BTC) is up 3% as it continues to trade above $65K.
Bitcoin Holds Above $64K as China Stimulus Sends Conflux’s CFX, Dog Memes Running High

Yesterday saw a massive surge in investments for U.S.-based Bitcoin ETFs, with an inflow of approximately $365 million, as reported by SoSoValue. This makes it one of the highest single-day inflows ever recorded, and adds to the already impressive weekly total of over $600 million.

For the most part, the majority of today’s investments were directed towards ARK’s ARKB ETF with a total of approximately $113.8 million, followed closely by BlackRock’s IBIT with around $93.38 million and Fidelity’s FBTC with about $74 million.
ETH ETFs didn’t have the same market interest, as they saw outflows of nearly $675,000.
Ether (ETH) is up 4% in the last week, according to market data, versus 2% for BTC.

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2024-09-27 09:48