Memecoins
Dogecoin, Shiba Inu and Floki are ‘Dino Coins,’ Trader Says: He Likes These Other 3 Coins as ‘Blue Tokens’
Pseudonymous traderSteam Trading“The very parts suggested are about to benefit to the maximum from the next alternate season.
What happened: Trading Vapor shared its observation this sentiment towards altcoins and meme coins is bad, but think this is misplaced. The trader examined three crucial questions to make the case for an impending alternate season:
- East Bitcoin Is the BTC/USD cycle reaching its peak?
- If not, will new all-time highs trigger an alternate season?
- If this happens, which parts will benefit the most?
Bitcoin at the top?
The trader rejects the idea that Bitcoin’s peak has already been reached. He emphasizes: “There is no reason to think that this time is any different,” referring to the historical pattern that Bitcoin has surpassed all-time highs due to structural implications, such as halving it.
The alignment of bullish catalysts such as upcoming Federal Reserve rate cuts, pro-crypto policy stances in the US, ETF flows, and Bitcoin reaching previous highs all support the thesis that the top of the Bitcoin is not yet reached.
Vapor addressed the “mass retail” factor by stating that retail investors, despite past burns, are likely to return when Bitcoin surpasses an all-time high. This is due to greed and the search for higher returns in small-cap altcoins.
“The argument that ‘retail won’t come back’ already existed in 2020,” he says, pointing out its inaccuracy as retail fervor returned when Bitcoin went parabolic in 2021.
Read also: What the Ethereum ETF Means for Altcoins and Meme Coins
Bitcoin rally triggers Altcoins?
Some argue that institutional ETFs are jumping into Bitcoin and Ethereum ETH/USD could remain siled, limiting the spillover of wealth to altcoins. However, Trading Vapor countered this by pointing out that every crypto bull run has historically started with increasing Bitcoin dominance, followed by an altcoin surge.
He notes: “Any increase in the price of Ethereum will passively increase the prices of altcoins due to their price relative to wETH. » This wealth effect will extend to decentralized financial markets and have a positive impact on altcoins, especially with retail investors returning to the market as Bitcoin approaches $100,000.
Meme Coins, notable winners
Trading Vapor shows how meme coins, although high risk, provide maximum financial opportunities. He classifies them as “first rate” coins like Pepe PEPE/USD, dog hat WIF/USD and Bonk BONK/USD, which have achieved breakout velocity and cult-like communities. These coins, without dilution and without CEX quotation, appeal to both mass retailers and crypto natives.
He adds Dogecoin DOGE/USD, Shiba Inu SHIB/USD and Floki Inu FLOKI/USD to the list. But he also sees them as dinosaur coins, which implies “fully diluted but with no attention or momentum on them” and so they become a little less interesting.
Highlighting the latest bull cycle of DOGE and SHIB, Vapor added: “The upside of blue chip coins are multiple, making them arguably the most comfortable candidates to hold for a future alt season.”
Why is this important: Analysis from Trading Vapor suggests that an alt season is likely if Bitcoin continues its upward trajectory. Meme coins, especially established ones, could see significant gains in this scenario as investors seek high returns.
The trader added that despite the emergence of new categories of altcoins, “the arbiter of truth will remain mass retail and what they decide to buy during the later rounds of the bull run.” He pointed out that there is strong reason to assume that they will choose even coins listed on the CEX list, just like in 2021.
And after: The influence of Bitcoin as an institutional asset class should be explored in depth in the next The future of digital assets event on November 19.
This content was partially produced using AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock