FOMO Towards PEPE and These Meme Coins Raises Caution Flag for Crypto Markets, Warns Analyst

Leading on-chain analytics provider Santiment cautions that the abrupt rebound across speculative meme coins like PEPE, Floki, and WIF warrants caution signs for the broader cryptocurrency market outlook.

Alongside the explosive rally by non-fundamental dog coins, record Bitcoin ETF volume hint overeager bulls could face harsh pullbacks if momentum stalls.

Source: Santiment – Start using it today

Meme Coin Fever Returns Alongside Bitcoin’s $59k Push

Santiment flags concerning parallels emerging as Bitcoin powered to its highest levels in over 15 months this week, approaching the psychologically notable $60,000 threshold – only for meme tokens like PEPE and Wifedoge to concurrently gain significant traction.

Meme coins are gaining significant increased traction and market cap growth on an otherwise flat Tuesday,” the researchers noted Tuesday, listing PEPE up 63%, Floki climbing 44%, and WIF surging 43% on the day against modest moves elsewhere.

According to Santiment’s findings during past market cycles, sharp diversion of capital from Bitcoin into extremely speculative derivative assets often marked exhaustion turning points – making the developments this week a ‘caution flag’ worth monitoring closely.

Record Outflows from Bitcoin Investment Trusts

Santiment also highlights the Grayscale Bitcoin Trust (GBTC) posting consecutive all-time high daily outflows this week above $7.64 billion, indicating holders are urgently redeploying exposure elsewhere. Similar dynamics plagued GBTC, leading to previous bear trends.

“Speculated to largely be contributed to investors’ combined FOMO and profit taking surrounding Bitcoin breaking new 2-year high market values this week…”

Explosion in Meme Coin Market; How to find potential successors to $WIF, $PEPE, and $BONK?🤫

The key? Getting in early, especially during the ICO phase. Check out NuggetRush today! This new memecoin combines play-to-earn gaming with authentic gold mining ventures. Seize the opportunity with ongoing presale prices! Plus, prepare for $NUGX’s upcoming launch on major exchanges.

Show more +

If the goal proves rotating short-term gains into lagging small caps like meme tokens in hopes of igniting a bull run, history shows retail’s actions could badly backfire if Bitcoin sentiment flips bearish.

Thus, Santiment cautions on the troubling signs of overextension and greed across areas like meme tokens, just as layers of resistance overhead look to challenge Bitcoin’s ascent, threatening a swift mood change if unsupported buying dries up.

You may also be interested in:

Check NuggetRush ($NUGX)

Sponsored: Invest Responsibly, Do Your Own Research.
Being in its ICO stage, NuggetRush offers a prime opportunity for early investors to get in at potentially lower prices
A unique play-to-earn gaming platform in the memecoin market
The platform combines artisanal and gold mining with cryptocurrencies in an unusual gaming context, offering a distinctive and immersive experience
Fosters a strong community by encouraging physical meetups among members
NFT Integration with Prominent Characters
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.


Vignesh Karunanidhi
Vignesh Karunanidhi

Seasoned crypto writer with deep passion for blockchain and cryptocurrency