Key Takeaways:
The release of the latest US Consumer Price Index (CPI) data revealed a drop in inflation, triggering a ripple effect that has put the crypto market on a path to recovery and potentially a bull run.
Memecoins stole the show as newly launched tokens like Super Trump (STRUMP) and Raboo (RABT) posted major gains this week.
US Inflation Falls to 3.3%, Sparking a Return to the Green Zone for the Crypto Market
On Wednesday, the US Bureau of Labor Statistics (BLS) released the CPI data, which showed inflation had declined to 3.3%, a figure better than the estimated 3.4%. Reduced inflation has sparked fresh hopes for the US economy and a fire in the broader crypto market.
However, it was the meme coins that made the news as they showcased the biggest gains since the CPI announcement. Among them were PEPE, DOG, GME, BODEN, and STRUMP.
Pepe coin (PEPE) and BODEN, a meme coin based on President Joe Biden, posted gains of 10% and 13% respectively, while Runes-based Dog-To-The-Moon (DOG) and GME experienced some of the biggest surges in the market, rising above 20%.
Investors Flocking to STRUMP and RABT as Presidential Election Heats Up
There was no short of craze for new meme coin projects as investors are now flocking in to get their hands on Super Trump (STRUMP), the price of which is up over 400% from the previous month.
A strong reason for STRUMP’s popularity is the upcoming US Presidential election and the token’s connection to former president and Republican Party front-runner Donald Trump. Super Trump posts memes around the billionaire business tycoon, which his supporters seem to enjoy as he battles in the polls against Joe Biden.
Trump has been a strong proponent of Bitcoin and cryptocurrencies and his pro-crypto agenda this time has caught the attention of enthusiasts. STRUMP dipped 9% in the past week, which could be attributed to the latest charges and convictions faced by the former president in New York. Whales are largely expected to reverse the token’s fortunes this week.
Meanwhile, Raboo (RABT) is a memecoin that is designed to address the issue of substandard memes with the help of AI. Its generative AI, called Rabooscan, will source and arrange various content into memes and ensure that only the latest ones are circulated on the internet.
RABT is currently in the fourth stage of the presale, with the tokens priced at $0.0048 apiece. There is not much time left until the cryptocurrency is released, and its price is only expected to get higher as time goes on. Analysts are projecting a 100x ROI on RABT once it goes live on exchanges.
Industry Voices Question the Appeal of Memecoins
Despite their surge, meme coins have always faced heavy criticism from key voices in the crypto industry. They question the very nature of this class of digital currencies and whether it offers any real value to the crypto community.
Developer “0xDesigner” recently went on a rant on X commenting on the recent market dominance of meme coins and how they have no real impact on the sector. While listing the various functionalities and “net positives” offered by cryptocurrencies, such as decentralization, peer-to-peer transactions, permissionless financial services, digital asset ownership, and cross-border payments, he argued there are “no compelling visions” of how meme coins can improve on that.
0XDesigner’s post caught the attention of Ethereum co-founder Vitalik Buterin, who responded by adding some perks of Ether (ETH) to the list, like decentralized social media, zero-knowledge identity, privacy, censorship-resistant voting, prediction markets, etc.
Regardless of the backlash they face, meme coins have been the shining light for crypto over the past month, as they recorded some of the highest gains across all market sectors.
Spot Bitcoin ETFs Working Hard to Save BTC From Further Decline
On a serious note, spot Bitcoin exchange-traded funds have pulled all strings to save Bitcoin (BTC) from declining further. The funds backed by the apex cryptocurrency have been trending among institutional investors for the past several weeks, as they have seen combined inflows of about $8 billion.
Prior to last week’s dip below the $70,000 mark, the market had been counting on the ETFs to bring on the heat and support BTC. However, experts say this won’t be easy as the marketwide sell-off is in full force.
Last week, crypto liquidations hit $93 million, with Bitcoin leading as traders cashed out nearly $15 million worth of the leading crypto asset.
The 11 spot Bitcoin ETFs currently trading in the US recorded nearly $65 million in outflows this week, ending the 19-day streak of daily inflows. On the other hand, Bitcoin’s hash price is starting to rise, meaning miners are pulling the plugs on supply. This could create a supply shock, propelling BTC prices beyond $70,000 to target a new all-time high.
At the time of writing, Bitcoin (BTC) is trading at $67,603 – up 0.26% in the last 24 hours. The world’s largest cryptocurrency by market capitalization is currently in decline and changing hands at 6% lower than last week’s price.
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