Bitcoin and ether prices dipped by over 1% as meme tokens surged. Shiba Inu led gains, driven by Asian traders and positive outlooks on ETFs.
One trader stated that Asian traders are primarily responsible for the surge in meme tokens like Dogecoin and Shiba Inu since they respond to the positive outlook surrounding ether exchange-traded funds (ETFs).
Prices for ether (ETH) and bitcoin (BTC) dropped by slightly more than 1% over the previous day as the cryptocurrency markets stayed mainly quiet following last week’s surge.
Among the CoinGecko-tracked categories, the meme coin sector generated the most gains for traders, with Shiba Inu (SHIB) rising as much as 12%. Primary tokens, including Solana’s SOL, XRP, and BNB Chain’s BNB, remained the same. With stablecoins excluded, the giant tokens’ broad-based CoinDesk 20 (CD20) index dropped by 0.5%.
Tuesday afternoon in Europe saw a spike in dogecoin (DOGE) and SHIB as premarket trading saw shares of video game retailer GameStop (GME) rise 19%, a signal that has previously resulted in increases in meme tokens.
Rennick Palley, founding partner at cryptocurrency fund Stratos, said in an email that “popular memes are running primarily due to Asian traders entering the market again; most tend to see their prices rise most significantly during Asian trading hours, during the middle of the night US time.”
“This is a follow-on effect to the excitement around the ETH ETF and US regulatory shift to becoming more pro-crypto,” Palley said.
Meme tokens, including Pepe (PEPE) and mog (MOG), have soared up to 100% in the last week as a beta wager on the Ethereum ecosystem, as was previously reported. This comes after an exchange-traded fund (ETF) for spot ether was approved for listing in the United States.
In contrast, FxPro senior market analyst Alex Kuptsikevich says that Bitcoin is still trading in a bearish zone despite recent volatility.
“This bearish trend will be broken by a clean departure and a daily close above $70,000. In a Telegram interview, he stated, “Until then, the classic development is a pullback to the lower range at around $68,000.”