In the past 24 hours, meme coins and AI-linked tokens have witnessed notable gains, outpacing major cryptocurrencies like bitcoin (BTC) in a market rebound.
BTC rebounded by 3.3%, reaching approximately $66,600 during European morning hours. This rise was fueled by reports suggesting approval for spot bitcoin and ether exchange-traded funds in Hong Kong.
Solana meme coins, dog-themed meme coins, and Base network meme coins surged by over 15% on average, according to data from CoinGecko. Similarly, AI tokens saw a significant increase of over 17%. The reasons behind these jumps remain unclear.
Meanwhile, tokens of layer-1 blockchains such as ether , Solana’s SOL, and Avalanche’s AVAX experienced a more modest rise of around 5.5%. The broader CryptoX 20 index, excluding stablecoins, showed a nearly 6% increase.
According to on-chain analysis by Lookonchain, whales have been acquiring substantial amounts of meme tokens, specifically cat in a dogs world and slerf, leading to an almost 80% surge in their prices over the past 24 hours.
The recent market downturn, attributed to profit-taking ahead of the upcoming bitcoin halving and macroeconomic uncertainties, resulted in the liquidation of over $2 billion in futures positions. This led to a decline in open interest, indicating the closure of bets.
Analysts anticipate short-term volatility surrounding the halving event scheduled for April 20, as historical patterns suggest a “sell the news” reaction. This sentiment is echoed by Matteo Greco, a research analyst at Fineqia International, who noted increased profit-taking and investor caution, as evidenced by a net outflow of $85 million from Bitcoin Spot ETFs in recent weeks.
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