Memecoins are surging with intra-day trading sparking a rally in several assets as the United States inflation falls. The Consumer Price Index data which saw monthly inflation figures drop to 0.3% has occasioned a boost in crypto prices.
This means that core inflation is down to 2021 levels signalling potential interest rate cuts. The stock market added to its recent upward moment with both the S&P 500 and NASDAQ’s Composite Index hitting all-time highs. Memecoins are big beneficiaries because of reduced rates mean increased sentiments as investors move funds to risky assets.
Memecoins Mark a Rebound
Memecoins faced a sharp correction alongside top crypto assets following negative macroeconomic factors. Some assets posted double-digit losses while new memecoins saw inflows. The memecoin market cap is up 8.8% today today while the wider crypto market cap is up 6.20% in the same period.
Solana memecoins have notched 11.8% gains as an asset class while dog-themed tokens have spurred 8.6%. Market leader Dogecoin (DOGE) is up 5.8% today extended weekly gains of over 8%. Dogecoin bulls have made projections on the asset price going on a run to $1 on the back of a wider crypto bull market.
The asset trades at $0.1548 and has seen improved trading volumes. Trading volumes for DOGE are at $1.48 billion while its market cap stands at $22.3 billion. Shiba Inu (SHIB) has soared 9.8% in the last 24 hours while weekly flows are at 11.7%. The asset has seen bullish upticks as on-chain factors rebound. With trading volumes over $906 million, the market cap ticked upwards to $14.8 billion.
Will It Last?
The surge recorded in memecoins follows improved market sentiments on the back of an improved CPI report. With inflation declining, investors have the confidence to pour funds into risky assets which will benefit cryptocurrencies.
Another factor that bulls tip for a sustained rally is interest rate cuts by the Federal Reserve. Most traditional institutions project rate cuts as early as September. The run-up to the US Presidential elections and crypto regulations for factors that may swing the asset.
Also Read: Here’s Why Ethereum Charts Might Turn Bullish Now: ETH Targets $4K?
The post Memecoins Jump 8% as US Inflation Falls appeared first on CoinGape.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed