Memecoins: The Hilarious Rollercoaster of Crypto Chaos! 🎢💰

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What to know:

  • Memecoins like TRUMP and LIBRA are sucking liquidity faster than a vacuum on steroids, according to market makers at Consensus Hong Kong. 🧹💨
  • One optimistic market maker said there’s still good news to be priced in, which is like saying there’s still cake left at a party—everyone’s just too busy with the memecoins! 🎂
  • Forget CME futures; they’re no longer the golden ticket for ETF approval. It’s like finding out Willy Wonka’s factory is open to everyone! 🍫

Bitcoin‘s (BTC) recent price range between $94,000 and $100,000 has left many scratching their heads like they just heard a bad joke. 🤔

While Bitcoin usually does the cha-cha with strong moves followed by a long nap, this time it feels like it’s stuck in a slow-motion dance-off. 💃🕺

Attendees at last week’s Consensus Hong Kong were all like, “What’s with the memecoin madness?” It’s like a bad sequel to a movie nobody wanted! 🎬

“The market is so saturated with memecoins, it’s like a buffet where everyone just wants dessert,” said Evgeny Gaevoy, CEO of Wintermute, at the conference. 🍰

Tokens like Trump’s TRUMP and the LIBRA token from Argentine President Javier Milei are draining liquidity faster than a leaky faucet, with traders buying them at the expense of more established coins. 💧

This stagnant BTC price behavior is a blast from the past, reminiscent of September-October 2018, when the range tightened like a pair of pants after Thanksgiving dinner. 🦃

But hold your horses! This isn’t a total déjà vu. Back then, we were in a bear market, while now BTC is just a smidge below its all-time high—like a kid who can’t reach the cookie jar! 🍪

Presidential memecoins

Just three days before his inauguration, Trump launched his official token, TRUMP, which skyrocketed to a market cap of over $12 billion in 48 hours. Talk about a fast rise! But then it plummeted faster than a lead balloon, crashing to near $3 billion. 🎈

Interestingly, the total crypto market cap stayed about the same at nearly $3.5 trillion during this rollercoaster ride. It’s like watching a magic trick where the money just disappears! 🎩✨

While some wallets made a killing, around 800,000 folks lost a whopping $2 billion by either selling at a loss or holding on for dear life. Ouch! 💸

And then there was the LIBRA fiasco, which wiped out $251 million in investor money. It was like a bad magic show gone wrong! 🎭

That’s probably why Abraxas Capital Management’s Fabio Frontini suggested memecoins should be banned. He was speaking during a rapid-fire round at the “Views from Wall Street to Crypto” session at Consensus. Talk about a hot take! 🔥

Jason Atkins, chief commercial officer at Auros, pointed out that memecoins are sucking liquidity from other sectors like a vacuum cleaner on a mission. 🧹

“It’s clear that adoption is still in its toddler phase,” Atkins said. “One high-profile token launch can send shockwaves across the market like a toddler throwing a tantrum!” 👶

Those are key requirements for attracting more institutional interest, he said. Because who wants to invest in a toddler’s tantrum? 🤷‍♂️

“Institutional investors are tiptoeing around this space. They want to see a more mature, stable market that can handle larger volumes without getting disrupted by meme-driven chaos,” he added. 🧘‍♂️

Bitcoin’s direction

Opinions were as mixed as a fruit salad on what happens next for BTC. 🍉🍊

Several Consensus delegates said the meme frenzy and BTC’s uncanny stability is like a bad sitcom—unhealthy

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2025-02-24 15:05