The meme coin market continues to make waves, with coins like PEPE, Dogwifhat (WIF), and Bonk Inu (BONK) seeing strong performances. They are fueled by factors that crypto analyst Miles Deutscher believes will support this trend.
In a recent video, Deutscher highlighted two catalysts he sees as key to meme coin dynamics.
2Catalyst that could maintain the dominance of Meme Coins
First, the stability of the Consumer Price Index (CPI) and the recent re-listing of PEPE on platforms like Robinhood and Coinbase. According to Deutscher, these events contribute to the resilience of meme coins, with capital flowing into these assets while investor interest remains high.
CPI Stability Brings Optimism to Meme Coin Investors
The first catalyst cited by Deutscher is the latest CPI data, which recorded inflation stable at 2.6%. This figure meets market expectations and comes as a relief to investors who had de-risked their portfolios in anticipation of the report’s release. According to Deutscher, aligning the CPI with forecasts helped reassure investors, which created a ripple effect in the crypto market.
Despite a $900 million liquidation in the previous 24 hours, Bitcoin and altcoins saw positive price movements following the CPI release.
“The CPI is higher, as inflation amounts to 2.6%. First, the initial answer is that yields are falling and Bitcoin is rebounding,” analyst Michael Van de Poppe commented.
For meme coins, which often attract retail investors during bull cycles, this CPI-driven confidence has had a particularly large impact. Deutscher notes that this behavior echoes the trend seen in 2021.
Then meme coins like Dogecoin (DOGE) saw significant rebounds as market conditions improved. He suggests that as inflation remains under control, the same coins have the potential to attract speculative capital from investors.
“With the CPI out of the way, we see investors taking more risk, which bodes well for the popularity of meme coins,” Deutscher explain.
The CPI release reassures investors that inflation remains under control, indirectly benefiting meme coins by stabilizing the broader crypto market. As interest in traditional assets wanes, retail investors appear eager to return to meme coins.
Historically, these tokens outperform in risky environments. Deutscher believes that this dynamic will continue to support the meme coin market. This optimism comes as investors look for assets with higher growth potential.
Robinhood and Coinbase listings increase PEPE accessibility
The second factor fueling the recent meme coin rally is the re-listing of PEPE on Robinhood and Coinbase. The re-listing marks an important step for the accessibility of meme pieces.
These listings are particularly noteworthy given that Robinhood, along with other major exchanges, previously delisted PEPE and other assets due to regulatory concerns. The United States Securities and Exchange Commission (SEC) had classified several tokens as securities. This promexchanges were put under pressure to remove coins like PEPE.
However, as regulatory scrutiny has changed, Robinhood has recently re-registered PEPE, Solanaand Cardano, signaling renewed confidence in meme coins.
“Dear newspaper, today we listed PEPE on Robinhood”, the stock exchange said.
Coinbase quickly followed, addition PEPE on its roadmap. Deutscher sees this as a reflection of a changing regulatory attitude in the United States. He believes that this trend indicates a wider acceptance of the coins even among exchanges, especially as the the political climate around crypto regulation is becoming less restrictive.
Deutscher associates this change with a more favorable view of Republicans. Following Trump’s victoryRepublicans are now less likely to target these digital assets than the previous administration.
“Republicans won enough seats to control the House of Representatives, completing the party’s rise to power and securing their hold on both houses of Congress and the White House. Republicans took control of the Senate early,” Associated Press confirmed.
Deutscher says these listings also represent an opportunity for meme coins to gain traction. “With Robinhood and Coinbase ranking first and second on the App Store, the availability of PEPE is huge for retail interest,” he said, reiterating the importance of this exposure. As PEPE becomes available to a broader retail audience, its increased accessibility could lead to higher trading volumes and expand its reach to new investors who may have previously been hesitant.
“Being listed on Robinhood and Coinbase gives me the same SHIB vibes of 2021,” renowned analyst Zack Humphries added.
A combined effect that propels Meme pieces forward
CPI stability and stock quotes create a dual catalyst for meme coins, positioning them for potential growth during this cycle. Meme coins are typically driven by market sentiment and speculative interest, so these developments collectively create an environment for growth.
In light of these factors, PEPE and other industry tokens could see further price discovery as they attract retail and institutional attention. Deutscher’s analysis resonates with coin investors who have been eagerly awaiting signals of optimism from the market. He emphasizes the importance of remaining convinced, advising coin investors to stay the course despite fluctuations.
“When you believe in a strong narrative, it is essential to remain stable: the price will eventually reflect the value,” he concluded.
Ultimately, as CPI stability reassures the market and affordability expands with exchange listsEven coins like PEPE could see a continued influx of capital. This would maintain their dominance in the high-yield segment of the crypto market.
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