Memecoins provide clues for crypto markets as Bitcoin halving approaches, says Meltem Demirors

According to CoinShares Chief Strategy Officer Meltem Demirors, the recent memecoin craze indicates a shift in attitude in the crypto space.

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

“Pepe and this whole frog coin phenomenon, I am in no way advocating it, I am in no way affiliated with it, but I find it fascinating to see how many conversations it has spurred and how much it has even changed the mood in some of the.” Groups and communities I am in. People were really excited, I see a lot of ‘Oh baby we’re back.'”

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

However, the recent PEPE frenzy suggests the momentum could be shifting, 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 commitment when we go into Q3/Q4. And again, let’s not forget that we are entering another Bitcoin halving cycle. Again, history doesn’t repeat itself, but it does rhyme, and I think if we look at the pattern of the last three bitcoin halvings, if we follow a similar pattern this time, we’ll 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 that’s important to look at.

I think we will see more money staying in the crypto space trying to move further out on the risk curve as people see the opportunity to generate returns. So, to me, Pepe is a great indicator that at least people in the crypto space are more comfortable with risk.”

Historically, new crypto memecoins have been prone to extreme volatility and can suffer from high asset concentrations and heightened risks of pump-and-dump price crashes.

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