The meme coin market continues to attract attention due to the strength of coins like Pepe (PEPE), Dogwhat (WIF), and Bonk (BONK). This is driven by factors that analyst Miles Deutscher believes will persist.
In a recent video, Deutscher highlighted two key factors driving the meme coin momentum.
What are the 2 elements that will extend the meme coin hype?
The first is the stability of the Consumer Price Index (CPI) and the relisting of PEPE on platforms like Robinhood and Coinbase. Deutscher argues that these events contribute to the resilience of meme coins, and with high investor interest, capital is shifting into these assets.
US CPI Stable... Positive Movements Detected Across Crypto
The first factor discussed by Deutscher is the recent CPI data, which recorded a stable 2.6% inflation. This figure met market expectations, providing reassurance to investors, and had a ripple effect across the cryptocurrency market.
Despite $900 million in liquidations over the past 24 hours, Bit and altcoins experienced positive price movements following the CPI announcement.
"With the CPI rising, inflation has increased to 2.6%. Initially, yields drop, and Bit goes up," analyst Michael van de Poppe mentioned.
Meme coins tend to attract retail investors in bullish markets, and this CPI-based confidence was particularly impactful. Deutscher points out that this behavior reflects patterns seen in 2021.
Subsequently, meme coins like Dogecoin (DOGE) saw substantial upswings as market conditions improved. He suggests that as long as inflation remains under control, meme coins have the potential to draw speculative capital from investors.
"With the CPI being resolved, investors have become more willing to take on more risk, which is good for the popularity of meme coins," Deutscher explained.
The CPI announcement reaffirms to investors that inflation is under control, indirectly benefiting meme coins and stabilizing the crypto market. As interest in traditional assets wanes, retail investors show a renewed appetite for meme coins.
Historically, these tokens have performed well in risk-on environments. Deutscher believes this dynamic will continue to support the meme coin market. This optimism stems from investors seeking assets with higher growth potential.
Robinhood and Coinbase Jumped on Meme Coin Listings
The second factor driving the recent meme coin rally is the relisting of PEPE on Robinhood and Coinbase. These relists mark an important milestone in meme coin accessibility.
These listings are particularly noteworthy given that major exchanges, including Robinhood, had previously removed PEPE and other assets due to regulatory concerns. The US Securities and Exchange Commission (SEC) has designated several tokens as securities, pressuring exchanges to delist coins like PEPE.
However, as regulatory oversight has shifted, Robinhood has recently relisted PEPE, Solana, and Cardano, signaling renewed trust in meme coins.
"Dear Diary, today we listed PEPE on Robinhood," the exchange stated.
Coinbase quickly followed suit, adding PEPE to its roadmap. Deutscher views this as a reflection of a changing regulatory attitude in the US, and believes this trend indicates broader acceptance of meme coins among exchanges, especially as the political climate around crypto regulation becomes less restrictive.
Deutscher associates these changes with the Republican party's more positive stance. Following Trump's victory, the Republicans are less likely to target these digital assets than the previous administration.
"The Republicans have secured enough seats to control the House of Representatives, giving them control of both chambers of Congress and the White House. The Republicans had previously controlled the Senate," confirmed the Associated Press.
Deutscher argues that these listings represent an opportunity for meme coins to gain mainstream attention. "With Robinhood and Coinbase being the top two apps, the availability of PEPE is significant for retail investor interest," he reiterates, emphasizing the importance of this exposure. As PEPE becomes more widely accessible to a retail audience, its increased accessibility can drive trading volume and reach new investors who were previously hesitant.
"The listing of PEPE on Robinhood and Coinbase is similar to the SHIB sentiment of 2021," prominent analyst Jack Humphries added.
"An Environment Conducive to Meme Coin Growth is Emerging"
The stability of the CPI and the exchange listings serve as two catalysts providing growth potential for meme coins in this cycle. As meme coins are typically driven by market sentiment and speculative interest, these developments create an environment conducive to growth.
Considering these factors, PEPE and other sector tokens may experience additional price discovery as they attract retail and institutional attention. Deutscher's analysis resonates with meme coin investors who have been awaiting positive signals from the market. He emphasizes the importance of perseverance, advising meme coin investors to stay the course despite the volatility.
"When you believe in a strong narrative, it is important to maintain it consistently. Ultimately, the price will reflect the value," he concluded.
Ultimately, as CPI stability reassures the market and exchange listings expand accessibility, memecoins like PEPE can see continuous capital inflows. This will maintain their dominance in the high-yield segments of the cryptocurrency market.
