Despite its strong fundamentals, Bitcoin has been struggling for weeks. A popular crypto analyst argued that this could be due to the ongoing frenzy around joke-coins that are seeing large amounts of fresh inflow of funds. However, he believes the trend may change soon and real value tokens like BTC will continue their bullish run.
CryptoQuant CEO: Money going to Bitcoin (BTC) flows into joke-coins
CryptoQuant CEO says Dogecoin and its clones are sucking funds from Bitcoin (BTC), but the smart money will soon re-enter the market and reverse the trend. Although it started as a joke eight years ago, Dogecoin took center stage in 2021 and has not yet vacated its place. The interest that started with Elon Musk has attracted the masses with the frenzy supported by names like Mark Cuban and Snoop Dogg, and it has arguably become the most discussed topic within the crypto community.
Some also wanted to take advantage of the ongoing madness, and many imitators emerged. Coins that seemingly have no value or product are attracting people’s attention due to large fluctuations and multi-digit income promises. The formula for these coins that promise nothing seems to work. Many of them have recently made huge spikes. The latest example is a token called Shiba Inu (SHIB) that increased tenfold in just a few days.
This adds to the snowball effect even more, and some of these have become the most sought after and viewed digital assets. In addition to the mind-boggling returns, the graph from CoinMarketCap confirms this. Here are the most viewed cryptocurrencies on CMC:
The hashrate recovered after its short drop in mid-April and also returned to record highs. However, the asset’s price suffered last month. It dropped sharply after recording a record of $ 65,000 and even stayed below $ 50,000 for several strengths. Despite the leap, it failed to top $ 60,000 and is currently trading at $ 10,000 below its ATH.
At the same time, many altcoins often break records for the joke-coin traded with large fluctuations. However, CryptoQuant CEO Ki Young Ju believes that this trend will change soon and says, “The market will soon turn into smart money and funds will go to big coins with equity.”