Why Is Crypto Market Going Up Today?
Highlights
- Memecoins are leading the current crypto market rally; analyst predicts a "memecoin supercycle."
- Increased confidence in Bitcoin, fueled by factors like MicroStrategy's bullish strategy, is contributing to the positive market sentiment.
- "Crypto voting bloc" and activity on Polymarket add to crypto's market momentum.
The crypto market has been trending upwards in the last week and is extending that today. There are several reasons for this pattern, and the newest includes meme coins. SHIB and DOGE continued higher and strongly outpaced the whole crypto market last week.
Then again, analyst benchmark optimism of further gains, despite concern over valuation, reflects investor confidence in Bitcoin.
More recently, the possibility of manipulating Polymarket’s markets during the US presidential election gained attention and made crypto a force to reckon with in political affairs.
Furthermore, with a “crypto voting bloc” of some 26 million now appearing across the US, cryptos are becoming pertinent in shaping the political world, boosting the market’s upward trajectory.
Crypto Market to Get Ready for the Meme Coin Supercycle, Says Analyst.
The surge in the crypto market continued today, October 19. The rise of meme coin prices boosted investors’ sentiments and signaled fresh confidence in the economic outlook.
Despite some uncertainty over this week’s China boosting the debt ceiling in its latest stimulus efforts, crypto assets, and US stock markets saw significant recovery. This only further helped to fuel the community’s hopes for “Uptober,” a term coined to describe anticipated gains in October.
In the past 24 hours, the total crypto market cap rose by some 1.3% to around $2.33 trillion, led by famous meme coins such as Dogecoin – with the DOGE price up about 8%, and Shiba Inu price up around 3%, which have spearheaded the entire market higher.
Memecoin analyst Murad Mahmudov has an interesting theory he calls the “meme coin supercycle.” It explains how many factors come together to create extremely favorable market conditions for meme-focused cryptocurrencies to grow.
According to a report by BDC Consulting, the meme coin market shows a great correlation with Bitcoin’s movements, standing at 0.87.
This sensitivity indicates that the higher Bitcoin goes, the more parabolic the rise of meme coins might get. It’s all due to increased market liquidity and the broader enthusiasm that generally characterizes Bitcoin’s bull runs. The interplay between Bitcoin’s trajectory and the appeal of meme coins could help fuel a cycle of rapid price appreciation.
Bitcoin Bullishness to Lift MSTR Stock or Vice Versa?
On the other hand, benchmark analyst Mark Palmer feels optimistic about the near-term prospects for the MicroStrategy stock price, which he thinks can go far higher. Palmer set a $245 per-share price target in his report. This represents a compelling premium compared to its current price of $206.
He thinks this is due to MicroStrategy’s ongoing strategy of constantly buying Bitcoin, which further reinforces its market position when the price of Bitcoin rises. Palmer’s bullish stance reflects confidence in the effectiveness of the company’s Bitcoin-focused investment approach.
The positive outlook comes despite growing concerns that MSFT is already overvalued. It trades at a 2.3x premium to the net asset value of MicroStrategy’s Bitcoin portfolio. As of September, MicroStrategy holds upwards of 250,000 BTC. At the time of writing, its holdings were valued at roughly $17,3 billion.
Election and Crypto Voting Bloc Among Reasons for Crypto Market Jump
Indeed, the increased odds for Former President Donald Trump in the 2024 US presidential election have been highly influenced. According to reports, one Polymarket user identified as “Fredi9999,” holds upwards of $20 million in pro-Trump bets.
As the election draws closer, apprehensions about possible manipulation in decentralized prediction markets increase, with large volumes of funds moving markets in certain directions.
With Election Day fast approaching, the need to examine these prediction markets increases. The questions are raised on how bets can skew perceived election outcomes and shape sentiment in less than three weeks.
A new poll from The Digital Chamber reveals that 26M voters can be identified as a “crypto voting bloc.” It means they’re seeking out pro-crypto policies when deciding whom to support in the upcoming election.
This survey of 1,004 respondents found that 16% described cryptocurrency as “extremely” or “very” important when it came to voting. Interestingly, voters of both parties said they would be more likely to vote for a candidate who supports crypto-friendly policies. 25% of Democrats and 21% of Republicans said to have a positive impact on their likelihood of voting for a candidate.
Also, a strong majority of voters of both parties believe the crypto industry should be a middle-level priority for the new president and Congress. Growing voter awareness evidences how cryptocurrency can become a hot potato issue in this election cycle.
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