Crypto prices rebound as traders back new meme coin
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Despite a strong weekly open, prices corrected on Feb. 13 before recovering.
CPI data drives volatility
With Bitcoin breaking $50K for the first time since December 2021, market sentiment was optimistic, with many traders calling for $57K or higher.
The excitement also spilled over into altcoins, with countless projects seeing double digit gains.
Another attributing factor was Franklin Templeton’s spot Ethereum ETF application, which aims to include staking, enabling investors to earn an additional yield on their investment.
However, the crypto market was blindsided by the U.S Bureau of Labor Statistics Consumer Price Index (CPI) data, which was released on Feb. 13.
CPI is a measure of inflation.
A lower rate is considered bullish since it increases the likelihood of interest rate cuts, which enables more liquidity to enter the market.
The market consensus was that January’s inflation figure would be 2.9%, but it came in at 3.1%.
Consequently, risk-on markets, including the crypto market, saw significant volatility and Bitcoin crashed from $50.1K to $48.7K.
The U.S. stock market also fell, with the S&P 500 down 1.37% on Feb. 13.
Nevertheless, the crypto market has rebounded. BTC is trading at over $51K when writing.
As highlighted by CoinShares’ head of research, James Butterfill, spot Bitcoin ETFs saw their largest day of net inflows since launching Feb. 13.
According to the analyst, there were $651 million in net inflows, pushing the total to over $4 billion.
Meanwhile, prominent trader Michael van de Poppe highlighted the significant liquidity inflows is a “huge sign.”
Michael notes that the last three days saw $1.5 billion in net inflows. However, this figure exceeds $2 billion when factoring in Feb. 13’s data.
The consequent price rebound is so far skewed toward Bitcoin and Ethereum, with the market leaders up 1.78% and 2.22% today, respectively.
Other top 10 coins are neutral but bullish.
As crypto recovers, investors are looking at low cap but potent projects like Meme Kombat.
Meme Kombat raises $8.7 million
Meme Kombat offers a unique twist on the traditional meme coin model, integrating crypto gambling.
The project is backed to rally by analyst Jacob Bury, who recently pondered the effects of its upcoming exchange launch.
Meme Kombat is currently in its presale, raising over $8.7 million, close to its $10 million hard cap.
The platform lets users bet on AI-generated battles between meme coin characters using the MK token.
There is also a staking mechanism, currently offering a 108% APY.
Both of these utilities provide a demand stream that separates Meme Kombat from most speculation-driven meme coins.
Another advantage is Meme Kombat’s adherence to robust security measures. Its founding team is also public.
The project has also been audited by blockchain security firm Coinsult. This provides another unique distinction from most meme coins, often criticized for lacking transparency.
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