CoinShares chief strategy officer Meltem Demirors says investor behavior has changed in light of the recent meme coin rally in the market.
‘The latest meme coin craze shows how attitudes have changed’
cryptocoin.com We have featured triple-digit price increases of several meme coins in recent weeks. The most popular of these, Pepe Coin (PEPE), has provided 7,500x returns to its first investors in a short time. Demirors, who was a guest of Crypto Banter recently, says that the activity shows that investor behavior has changed.
According to Demirors, the demand for meme coins is too big to ignore. However, he says he does not ‘support’ this madness, without giving a precise reason:
I in no way support or disagree with Pepe and this whole frog coin phenomenon, but it’s fascinating to see how effective this has been and even how much it has changed sentiments in some of the groups and communities I’ve been in. People were really excited.
‘The feeling is changing’
Meltem Demirors said that crypto investors were more comfortable against Bitcoin (BTC) and Ethereum (ETH) during the last quarter of 2022 and the first quarter of 2023. This is because leading cryptos have low risk compared to their alternatives. However, the CoinShares executive states that the recent PEPE craze shows that the momentum may change:
Now people are talking about these unlimited supply coins. They are trying to figure out what they would prefer to the 3rd and 4th quartiles. Again, we cannot forget, we are entering another Bitcoin halving cycle.
Looking at the three examples of Bitcoin halvings in the past, I think a similar pattern can be followed, although history does not repeat. This means we have more data on crypto history and price behavior in supply/demand environments. Therefore, it is important to examine the behavior of Bitcoin prices over time in a simpler and more understandable way.
Finally, Demirors said that the volatility in the cryptocurrency market is definitely positive. In the Pepe coin example, over $100 million in volume has been collected since its launch on April 12, despite the high depreciation. The CoinShares executive thinks this move is indicative of changing investor sentiment:
As people see the opportunity to generate returns, I think we will see more money left in the crypto space that wants to move further down the risk curve. To me, Pepe is a great indicator that people, at least in the crypto space, are feeling more comfortable with risk.
How is the cryptocurrency market?
Bitcoin price fell below $28,000 after the news that US and Mt.Gox wallets were trading BTC. It then managed to reclaim the $29,000 region with a short-term rally. The price is now trading in the $29,200 region, where bulls gather strength for a rise to $30,000. Meanwhile, names like EGLD and INJ are earning over 5%.
