Key Points
- Bitcoin’s price could be affected by the potential Mt. Gox bitcoin supply hitting the market by October.
- Ether could benefit from the launch of the spot ETH ETF.
The price of Bitcoin could be negatively impacted by the potential influx of Bitcoin supply from the Mt. Gox payout by October, according to analysts from QCP Capital. On the other hand, the launch of the spot ETH ETF could potentially benefit Ether.
Concerns Over Mt. Gox-Related Bitcoin Supply
Analysts from Bitfinex are in agreement with the QCP Capital report, expressing concern over the Mt. Gox creditor payouts. They believe that if creditors decide to liquidate their holdings quickly, this could lead to an increase in Bitcoin supply. Such a scenario could trigger a sharp drop in Bitcoin prices due to a sudden surge of sell orders, potentially leading to further selling as panic spreads among other holders.
Focus Shifts to Memecoins
In the meantime, traders’ attention has been drawn to memecoins like dogecoin, shiba inu, and pepe, as major cryptocurrencies trade within a tight range ahead of the anticipated launch of spot ether exchange-traded funds. These memecoins have seen double-digit gains of between 10-20% and are polling in the top ten for open interest.
One group of memecoins, PolitiFi tokens, has posted significant gains over the past week. The top three memecoins by market capitalization in CoinGecko’s PolitiFi category account for approximately 82% of the category’s total market capitalization of $1.58 billion. These are MAGA (up 36% in the past week), ConstitutionDAO (up 12% in the past seven days), and MAGA hat (up by 603% in the same period).
PolitiFi is a memecoin category featuring tokens named after political figures, although these tokens almost always have no official affiliation with them. In contrast to the PolitiFi memecoin rally, the entire cryptocurrency market cap increased by 0.9% in the past 24 hours to $2.69 trillion. The price of leading cryptocurrencies, Bitcoin and Ethereum, increased by around 2.1% and 0.9%, respectively.
Bitcoin has been defending its position above the $67,000 level for the fourth time in the past two weeks and has continued to trade within a tight range, as has Ethereum. The GM 30 Index, representing a selection of the top 30 cryptocurrencies, increased by 0.24% to 144.65 in the past day.
