Market pumps as Fed cuts rates by 50 basis points and most meme coins surge by 20 to 50% and some as much as 2000% within the 24 hours.
TL;DR
- Fed cuts rates by 50 basis points and dovish tone renews market growth.
- Massive gains for many meme coins within the first 24 hours of rate cut.
- Bitcoin breaks through a key point of resistance on on the weekly RSI sparking hopes for renewed bullishness in the market.
Biggest Meme Coin Stories This Week
- Fed cuts rates by 50 basis points
- Meme coin market gains over 1 billion dollars in market cap within the past week
- Renewed optimism leaves many investors hopeful for a positive Q4
- Many coins are up 30% to 50% including in the past 24 hours, with names such as Andy Eth up 61% in 24 hours, Popcat up 34% and Pepe up 15%
- Neiro is up over 2000% in thepast seven days
Spotted in Singapore: Ansem
The Big Story: Crypto Market Responds to Fed Rate Cut Call
We’re currently in Singapore attending Token2049 and Breakpoint and the place is abuzz with crypto talks of all sorts, including meme coins. The US Federal Reserve's decision to cut interest rates by 50 basis points on September 19th sent ripples through the markets. This move, more aggressive than the 25 basis point cut some analysts expected, marks the beginning of the first rate cut cycle in over four years. Fed Chair Jerome Powell's notably dovish tone during the FOMC press conference added fuel to the fire, sending meme coins soaring from their recent lows.
Historically, increased market liquidity correlates strongly with upward movements in Bitcoin and the broader cryptocurrency market. It seems the meme coin sector got the memo and decided to party like it's 2021.
Meme coins Surge With Renewed Optimism
The meme coin market, which had been snoozing for weeks, suddenly sprang to life like a cat that heard a can opener. Social media is buzzing with renewed enthusiasm as traders go long, hoping for a return of meme coin season.
This resurgence is reminiscent of previous rallies where tokens like Pepe, WIF, Bonk, and BOM saw massive gains in short periods. The current market rally appears equally promising, fueled by the Fed's monetary policy change and pent-up market energy.
Some standout performers since the Fed rate cut include:
- Andy Eth: A relative newbie that saw a 61% gain in 24 hours
- Popcat: Community favorite up 34%
- Pepe: Even this established player jumped 15%
More established meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) also joined the party with increases of 45% and 38% respectively.
Meme Coin Market
7-Day Market Snapshot
For the 7-day period ending September 19, 2024, the total meme coin market cap stands at $38.20 billion, up a billion dollars in value since early September.. The overall market trend has been very bullish, which is a definite relief after several months of bearishness. The broader market influences are based primarily on the Fed rate cut and BTC breaking key resistance on the weekly RSI.
Meme Coins vs Other Crypto Sectors
Beyond meme coins, the broader altcoin market also benefited from the Fed's recent decision. Ethereum saw a 7% increase and Solana, Cardano and Avalanche posted gains ranging from 10% to 25%.
The DeFiLlama's Narrative tracker shows that the meme coin sector is still outperforming many of the other crypto sectors - currently only challenged by a recent strong uptrend in NFTs and SocialFi. It is noted that most narratives have of course been doing very well in the past few days, with DeFi, ETH and oracles being the exception with very modest gains.
Top 20 Meme Coins The Last 7 Days
The over meme coin market has been overwhelmingly green across the board in recent days, with ANDY ETH, Neiro on ETH, Billy and HarryPotterObamaSonic10Inu being notable examples of coins that have seen gains above 35% in less than 24 hours.
Biggest Losers (7d):
- DOGS (DOGS): -2.30%
- SUNDOG (SUNDOG): + 0.18%
- Dog (Runes) (DOG): + 0.48%
Biggest Gainers (7d):
- First Neiro On Ethereum (NEIRO): + 2253.69%
- Baby Doge Coin (BabyDoge): + 148.73%
- Turbo (TURBO): + 74.64%
Quick Takes
- First Neiro On Ethereum (NEIRO) has seen a massive surge of over 2000% in the past 7 days and has rocketed into the 209th position of all crypto coins based on market cap.
- The meme coin industry has gained over 1 billion dollars in market cap over the past 7 days.
- If the bullish market sentiment continues meme coins could see a lot more upside.
- Many large cap meme coins up substantially, including Popcat up 34% and Pepe up 15%
Bitcoin Breaks Key Resistance
While meme coins have stolen the spotlight with their explosive gains, Bitcoin, the flagship cryptocurrency, has also made a significant move in the wake of the Fed's announcement. After months of consolidation, Bitcoin finally broke through a key resistance level that had been holding it back for over 200 days.
Up to this point BTC had been locked in an intense battle with resistance on the weekly RSI, repeatedly testing its upper bounds with five distinct touch points. This prolonged period of tension had created a pressure cooker scenario, where even a slight nudge could trigger a massive breakout.
Bitcoin's price action following the rate cut suggests that the $60,000 level, which some analysts had speculated might be the new $10,000 from the previous cycle, could indeed become a new support level.
All this bodes for meme coins, which require this type of Bitcoin bullishness to thrive as the silly money re-enters the crypto markets.
What You Can Do
As the meme coin market digests the implications of the Fed's rate cut, all eyes will be on whether these gains can be sustained in the coming weeks and months. The beginning of a new rate cut cycle could potentially herald a prolonged period of growth for the market, but as always in this dynamic and unpredictable market, only time will tell.
- Exercise caution when investing in meme coins, as they are highly volatile and risky.
- Consider diversifying your portfolio with high-quality, fundamentally strong coins while they are on sale.
- Keep an eye on BTC to see if it can hold its current uptrend and build new support levels at 64 000$ per BTC.
- Be patient, as the positive effect of the rate cut might take months to take full effect on the market.
- Avoid chasing pumps and invest based on your risk tolerance and long-term goals.
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