The current trend of events before the upcoming halving has proven that the industry is unpredictable. Meme coins are recording an inflow of liquidity after Bitcoin’s slight retracement in what has been termed a “weird” bull market by observers.
Some analysts believe that the approaching Bitcoin halving cycle differs significantly from others due to BTC’s premature all-time high and the meme coin frenzy.
Chainlink Community Liaison Zack Rynes, commenting on the state of the crypto market, tagged the current bull market as weird.
I think most people would agree this bull market has been weird
BTC performance has been clearly supercharged by the ETF launch, injecting liquidity into the space
But liquidity that has flowed directly to memecoins ?
The market skipped a couple steps that we have seen with…
— Zach Rynes | CLG (@ChainLinkGod) April 1, 2024
According to Rynes, Bitcoin’s performance has been boosted by the ETF launch that injected vital liquidity into the space. However, he noted that the liquidity from Bitcoin seems to have flowed directly to meme coins, leading to memecoin season.
So, the market has skipped some steps based on its previous cycles, where altcoins rallied before the meme coins. Also, he noted that the altcoins have had a mixed performance, largely dependent on community sentiment.
Responding to the claim, an X user, Crypto Cat, stated that the market accepts meme coins as the best utility tokens. Also, Crypto Cat noted that everyone in the crypto space desires to get rich quickly, and meme coins are pretty helpful in fulfilling this desire.
Notably, the total market capitalization for meme coins surged to $70 billion on April 1 due to massive pumps for new tokens.
These meme tokens include Solana-based tokens such as Dogwifhat (WIF), Book of Meme (BOME), and older memecoin projects such as BONK or PEPE.
Also, the Coinbase layer-2 network Base is now a focal point for memecoin speculation. Remarkably, the recently launched DEGEN token native to Base yielded a massive 2,800% gain over the past month.
Further, Zack Rynes’ sentiments were shared by Ethereum Educator Anthony Sassano. He stated that although he has traded crypto for a while, from 2013 till date, this bull market is by far the weirdest ever recorded.
According to him, the Bitcoin four-year halving cycle rally is dead. As such, any investors focusing on fundamentals-based investing will find this cycle quite tricky.
However, Sassano noted that there is a lot of money currently rotating around, and the true rally is yet to begin.
Bitcoin Hits New All-Time High-Value Pre-Halving, What Next for BTC?
Remarkably, Bitcoin rallied to a new ATH of $73,734 on March 14, with the Bitcoin Halving roughly 18 days from today.
Based on Bitcoin’s performance, crypto analyst Moustache noted that BTC had reclaimed a critical Fibonacci Ratio level seen in previous cycles.
However, it achieved this rally before the halving, which is a big deal for the apex cryptocurrency.
It’s happened.👀🔥$BTC reclaimed the Fibonacci Ratio 3 line (4.236) on the monthly chart.
In every previous cycle, this led to a parabolic curve.
The structure is always the same, this time it only happens BEFORE the halving.
That’s really big imo.✅ pic.twitter.com/VIgLPT3azq
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) April 1, 2024
According to Moustache, BTC reclaimed the Fibonacci Ratio 3 line (4.236) on the monthly timeframe. In every cycle, this setup led to a parabolic curve and a massive increase in Bitcoin sales.
As such, Bitcoin will likely rally to a new all-time high post-halving if the historical patterns are followed.
