Meme currencies and AI-linked tokens outperformed bitcoin in the past 24 hours. Cryptocurrencies like bitcoin and ether recovered from weekend losses, with BTC trading about $66,600 in European morning hours on Hong Kong ETF approval claims.
Due to profit-taking before the bitcoin halving and macroeconomic shocks, nearly $2 billion in futures holdings were liquidated and open interest dropped, causing the market-wide decrease. As bitcoin and other major tokens reversed weekend losses, meme currencies and AI-linked tokens led advances in the past 24 hours.
Bitcoin {{BTC}} rose 3.3% to $66,600 in European morning hours, boosted by news of Hong Kong ETF approval for bitcoin and ether. Solana, dog-themed, and Base network meme currencies rose over 15%, while AI tokens rose over 17%, according to CoinGecko category statistics. No clear cause prompted the jumps.
Layer-1 blockchain tokens like ether {{ETH}}, Solana’s SOL, and Avalanche’s AVAX are among the worst performers, rising by an average of 5.5%. CoinDesk 20, a liquid index of main tokens sans stablecoins, climbed over 6%.
Tool for on-chain analysis In an X post, Lookonchain said whales, affluent traders who can change token values, bought millions of meme tokens cat in a dogs world (MEW) and slerf. Both prices jumped approximately 80% in 24 hours.
Since late Friday, profit taking ahead of the halving later this week and macroeconomic tremors have weighed on the market, causing bitcoin to fall from about $70,500 to $62,800. Majors fell 18%, causing a market-wide fall. Over the weekend, $2 billion in futures positions were liquidated, the largest since March. According to Coinalyze, over $1.5 billion of those positions gambled on higher prices.
In an X message, a Coinalyze spokesperson informed CoinDesk that the leverage flush reduced open interest by $13 billion since Friday, indicating bets were closed. Some traders predicted the price drop before the April 20 halving, which will slash network miners' payouts in half.
“While previous halving events have historically been followed by 9-12 months of uptrend, they have often triggered short-term'sell the news' reactions before and after the event,” Fineqia International research analyst Matteo Greco told CoinDesk in an email.
Greco said the net outflow of $85 million from Bitcoin Spot ETFs during the week indicated profit-taking and investor concern after the robust ascent in both Q4 2023 and Q1 2024.
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