Bitcoin’s consolidation above $68K spurred a broader rally in the meme coin market, which drew renewed attention from investors to Bonk
Bonk’s market capitalization was $1.71 billion at press time, with a 5.8% increase in the past day and a 36% increase in the past 30 days. The daily trading volume of the meme coin increased by 76% over the past day, and it currently exceeds $285 million.
The global crypto market has gradually recovered from the slump a fortnight ago, while Bitcoin was trading relatively flat, lingering above $68,000. The crypto market valuation has increased from $2.2 trillion on October 11 to $2.48 trillion.
It is not uncommon for altcoins, such as memecoins, to experience a surge in value during periods of Bitcoin consolidation. This is frequently the result of speculators turning their attention to smaller, higher-risk assets in anticipation of achieving more substantial short-term gains as Bitcoin stabilizes.
The rally of Bonk was also bolstered by the announcement that the meme coin is collaborating with Osprey Funds. This New York-based firm is renowned for its ability to integrate crypto assets into traditional markets and introduce a BONK exchange-traded product. This product will be referred to as the Osprey BONK Trust.
As with any crypto ETP, the initiative’s objective is to reduce the obstacles that traditional and institutional investors face in gaining access to crypto.
Osprey Funds has initiated the process of accepting investments from its initial cohort of qualified investors. After this phase, the trust will apply for the BONK ETP to be listed on secondary markets.
BONK merchants are optimistic.
The Community Sentiment Tracker on CoinMarketCap indicated that traders were optimistic about the meme coin and anticipated additional gains. The increase in interest was apparent, as BONK was a trending search term on Google on October 21.
Independent trader Unipics observed that Bonk appeared poised to emerge from a massive triangle pattern that had been consolidating since March 1, 2024, on X. In technical analysis, a breakout from this pattern is considered a significant indicator of a favorable price reversal.
The favorable outlook was bolstered by technical indicators on the 1-day chart for the meme coin. BONK’s current price was situated near its Upper Bollinger Band, and both lines of the Moving Average Convergence Divergence indicator were above zero, indicating that the bullish momentum is expected to persist, resulting in additional price gains in the short term.
On October 21, CoinGecko reported that memecoins were experiencing a surge in value, with their total market capitalization increasing by 1.7% in the previous 24 hours to exceed $65 billion.
According to certain analysts, this is merely the inception of a more significant trend. For example, Murad Mahmudov, a crypto analyst, anticipates that we are currently in the midst of a meme coin supercycle, with the market anticipated to reach its zenith by the conclusion of 2025.