Memecoins Gives Clues For Crypto Markets As Bitcoin Halving Approaches, Says Meltem Demirors

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The recent memecoin frenzy is indicative of a shift in attitude in the crypto space, according to CoinShares Chief Strategy Officer Meltem Demirors.

In a new interview on Crypto Banter, Demirors discusses PEPE, a volatile new token inspired by controversial Pepe the Frog memes.

Pepe and this whole frog room phenomenon, I don’t endorse it in any way, I don’t participate in it in any way, but I think it’s fascinating to see how much conversation has been sparked and how it changed the feeling even in some of the groups and communities that I’m in. People were really excited, I see a lot of Oh baby, they were back.

Demirors notes that crypto investors were much more comfortable with exposure to Bitcoin (BTC) and Ethereum (ETH) in Q4 2022 and Q1 2023, as they are low-risk digital assets.

The recent PEPE frenzy, however, indicates that the dynamic could change, according to the CoinShares executive.

Now people are talking about these long tail coins, people are trying to figure out what [they] want to have exposure as we go into Q3/Q4. And again, we can’t forget, we were entering another Bitcoin halving cycle. Now, again, history doesn’t repeat itself, but it does rhyme, and I think if we look at the pattern of the last three halvings of Bitcoin, if we follow a similar pattern this time, we have a lot more data on this history of crypto, its price behavior over time, its price behavior in these different supply/demand environments, and so I think it’s important to watch.

I think I can see more money staying in the crypto space looking to move further up the risk curve as people see the opportunity to generate returns. So for me, Pepe is a great indicator that at least people in the crypto space are feeling more comfortable with risk.

Historically, newer cryptocoins tend to exhibit extreme volatility and can suffer from high concentrations of wealth and high risk of pump-and-dump price drops.

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