Bitcoin Gains Are Pushing Traders Into Meme Coins, Says Bitwise Exec.
Surging meme coins and other altcoins can apparently thank Bitcoin for filling traders' pockets, says Bitwise CIO Matt Hougan.
Why exactly are meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) pumping all of a sudden? Bitwise CIO Matt Hougan says thereâs a method to the madness.
The primary driver of alt season is a classic âwealth effect,â" wrote Hougan on Twitter Friday. âCrypto natives make money in Bitcoin, feel rich, and then look for more speculative assets to invest in.
Bitcoin (BTC), the long-reigning king of the crypto market, is up 54% year to date, largely thanks to inflows and media hype surrounding new Bitcoin spot ETFs launched by BlackRock, Fidelity, and othersâincluding Bitwise itself. The cryptocurrency even tapped a new all-time high above $70,000 on Friday, up 11.5% over the last seven days.
