This week, the crypto market was turbulent. Events such as Andrew Tate’s controversial meme coins, Ripple’s large-scale asset sales, and hedge funds betting against Bitcoin caused high volatility.
Moreover, the macroeconomic data, such as the US Federal Reserve keeping the interest rates unchanged, also contributed to the market dynamics.
Andrew Tate’s Meme Coin Sparks Market Frenzy
This week, the controversial social media influencer Andrew Tate has created significant buzz in the crypto market. He has been actively promoting various tokens within the Solana ecosystem, causing substantial market movements.
The Real Nigger Tate (RNT) coin, following his promotion, skyrocketed to a market capitalization of over $18 million. Additionally, Tate received a large portion of another token, TOPG, which he then burned. This action has led to various responses from the crypto community, ranging from admiration to concern about potential market manipulation.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
Amid these developments, Tate also backed the DADDY meme coin, vowing to burn $100 million worth of crypto during a live stream. His provocative approach continued as he positioned DADDY in direct opposition to another meme coin called MOTHER, promoted by musician Iggy Azalea.
“I heard about a coin called MOTHER, so now I’m supporting a coin called DADDY to flip it for the patriarchy,” Tate said.
However, blockchain analytics from Bubblemaps highlighted suspicious insider activities before Tate’s promotion, revealing that insiders had acquired 30% of DADDY’s supply, potentially artificially inflating the price.
Ripple’s Strategic XRP Sales
Ripple recently sold 150 million XRP tokens, valued at $78 million. These sales are part of a larger strategy that includes setting aside 400 million XRP for future sales.
The magnitude of these sales highlights Ripple’s significant influence on the XRP market and raises questions regarding future price trends. Moreover, last week, Ripple transferred nearly $1.5 billion in XRP tokens from its escrow wallet.
The transactions have drawn attention due to their potential impact on the XRP market price, which has declined by 8% over the past week. However, in the past 24 hours, the price has displayed relatively lesser volatility, down by just 1.74%.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
Hedge Funds Increase Short Positions on Bitcoin
Moreover, this week has witnessed a remarkable increase in hedge funds’ short positions on Bitcoin. Data from the Chicago Mercantile Exchange (CME) Group’s Commitments of Traders report shows these positions have hit a record high.
This suggests a bearish stance on Bitcoin among institutional investors. As a result, Bitcoin’s price has fallen by nearly 6% this week, adding to the speculative nature of the market.
Read more: How to Short Bitcoin: A Step-by-Step Guide
Moreover, this week, there have been net outflows from the spot Bitcoin ETFs. They recorded a net outflow of $390.7 million, following a 19-day streak of inflows into Bitcoin ETFs.
| Date | IBIT | FBTC | BITB | ARKB | BTCO | EZBC | BRRR | HODL | BTCW | GBTC | DEFI | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 10, 2024 | 6.3 | -3.0 | 7.6 | 0.0 | -20.5 | 0.0 | -15.8 | 0.0 | 0.0 | -39.5 | 0.0 | -64.9 |
| June 11, 2024 | 0.0 | -7.4 | -11.7 | -56.5 | 0.0 | 0.0 | 0.0 | -3.8 | 0.0 | -121.0 | 0.0 | -200.4 |
| June 12, 2024 | 15.6 | 50.6 | 14.5 | 8.5 | 0.0 | 0.0 | 0.0 | 11.6 | 0.0 | 0.0 | 0.0 | 100.8 |
| 13 Jun 2024 | 18.2 | -106.4 | -9.8 | -52.7 | -2.7 | 0.0 | 0.0 | -11.3 | 0.0 | -61.5 | 0.0 | -226.2 |
Real-World Asset Sector Leads Performance
Furthermore, the tokenization of real-world assets (RWAs) has emerged as the highest-performing crypto sector. According to data from Artemis Terminal, RWA has achieved a performance increase of 58%, surpassing assets like Ethereum and Bitcoin.
Moreover, there has been growth in tokenization projects and positive regulatory discussions, highlighting the sector’s expanding importance in financial markets.
Read more: How To Invest in Real-World Crypto Assets (RWA)?
Crypto Experts Highlight Altcoin Opportunities
Prominent crypto figures Arthur Hayes and Raoul Pal have offered their perspectives on promising altcoins. Hayes is optimistic about the prospects of Ethena and Ether.Fi, noting their potential to disrupt incumbents like Tether and Circle.
Hayes also believes that Aptos might soon lead the Layer-1 blockchain sector. On the other hand, Pal emphasizes the need for strategic investment decisions, advising against clinging to outdated market narratives. He continues to support Solana, which he considers a wise investment choice throughout the market cycles.
“Hold on to your coins, but don’t [screw] it up by owning the wrong stuff. You [don’t want to] miss out on the entire rally, which I’ve seen [because] you’re still stuck in the last narrative from three cycles ago,” Pal explained.
Read more: Which Are the Best Altcoins To Invest in June 2024?
This Week’s Crypto Top 10
The crypto market has experienced volatility this week, with most major assets declining. Bitcoin and Ethereum have dropped by 5.89% and 7.79%, respectively.
Following a recent high, BNB has suffered a 14.36% correction, and Solana’s value has decreased by 13.85%. Meanwhile, XRP and Dogecoin have also faced downturns. On the contrary, Toncoin has managed a modest increase, underscoring its varied performance across different crypto assets.
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