Despite the strong fundamentals of Bitcoin, its price has been struggling for weeks.
CryptoQuant CEO Ki Yong Jo argues that this may be due to the ongoing obsession with meme coins, which are seeing massive inflows of new money. However, he believes that the trend may change soon, and digital currencies will resume. The actual intrinsic value is ascent.
Where are the money and interests heading now?
Although it started as a joke eight years ago, the digital currency “Dogecoin” ranked among the top ten currencies by market value in 2021 and has not left its place yet.
This madness started with “Elon Musk” as well as many famous names such as “Mark Cuban” and “Snoop Dogg”, and has become the most widely discussed topic within and outside the crypto community.
As expected, many want to benefit from the ongoing obsession with this joke coin, which many of its counterfeiters have already emerged.
“Dogecoin” imitators, of course, must not offer any value or product, even if they must make future promises, and it is really strange that these currencies attract people’s attention due to the huge fluctuations and promises of multi-digit returns in a short time.
This is what many observers of the crypto market hope will be repeated with the new digital currency that follows the same “Dogecoin” method, which is the SHIB currency, which has increased ten times its price in the past few days.
Also, some of these digital currencies have become popular and popular and traders are looking for them and for platforms that offer their trading.
Smart money will go to bitcoin soon:
In light of the clear trend showing which of the hottest cryptocurrencies on the market now, the CEO of CryptoQuant believes that these lackluster currencies and clear value are the main reason behind the bitcoin price suffering.
He believes that bull market fundamentals are still strong, which is supported by the data, as institutional investors keep accumulating bitcoins, bitcoin miners refuse to sell, smaller traders withdraw their coins from trading platforms, etc.
The retail rate also recovered after short declines in mid-April and is back to record levels as well.
Bitcoin is still facing difficulties, after hitting a record high of $ 65,000, as Bitcoin slipped hard and plunged below $ 50,000 for a few days.
Despite its bounce, it failed to conquer the $ 60K level and is currently trading about $ 10,000 far from its highest peak.
At the same time, some altcoins are seeing new highs, including the aforementioned massive increases by meme coins.
Ki Yong Ju believes that this trend is about to change soon, and stated what it means:
The market will soon be smart money, and the money will go to major digital currencies that have intrinsic value.