Analyst Says Cryptocurrency Market Will Face ‘One More Scare’
The crypto market has been experiencing a spell of uncertainty lately as Bitcoin remains stagnant, moving sideways for three weeks. As a result, altcoins have been caught in the crossfire and are also trading in the red. The lack of clear direction for Bitcoin has left traders on edge, wondering when the market will finally make a move. Will the leading cryptocurrency break out and rally to new heights, or will it take a dip and drag the rest of the market with it?
According to a recent update on YouTube by crypto analyst Benjamin Cowen, traders in the digital asset space should be cautious of the ongoing frenzy around meme-coins. Cowen expressed his expectation that the crypto market is likely to experience “one more scare” this year.
The analyst discussed the pattern that has occurred in the cryptocurrency market during pre-halving years. These years are marked by rallies in the market, followed by the resurgence of meme coins. The excess in the market leads to the collapse of these meme coins and a subsequent market correction. He points out that this occurred in 2019 as well when many meme coins rallied but eventually lost value against Bitcoin.
He said, “I think there’s a good case to be made that a lot of the meme coins you see circulating right now, eight months from now people are going to forget them and they’re not going to care about them.”
Cryptocurrencies have been showing a noticeable rally with low volatility since the beginning of 2023. As a result, meme coins, such as Pepecoin (PEPE), SpongeBob token (SPONGE), Dogecoin (DOGE), and Shiba Inu (SHIB), are making a comeback in the industry. These meme coins have gained popularity on social media platforms. It is yet to be determined if Pepe and other meme coins will continue to attract investors or fade away.