New Records, Profit Taking and Meme Frenzy in Bitcoin

The market value of cryptocurrencies renewed its record by exceeding the important threshold of $ 3 trillion this week. While memecoins left their mark on the last rally, one of the big ones, Ripple, also appeared on the scene this week.

Although Bitcoin shows an upward trend with its weekly increase in value, it is necessary to draw attention to a few points when evaluating this rise. Most of the increase in value occurred at the beginning of the week. On Monday; While spot Bitcoin ETFs in America saw positive inflows near record levels of $1.1 billion, the last trading days of the week were dominated by outflows on Thursday and Friday.

According to the on-chain data, that is, the data obtained by analyzing the transactions on the blockchain, it is seen that investors took profits on BTC throughout the week. The market opening of the week should be followed carefully to understand whether there will be a similar profit taking from ETFs.

The increase in crypto-friendly members in the House of Representatives and the Senate in the United States strengthened the expectation of a more positive approach in the new period and brought a serious increase in value to Ripple, which has been struggling with the SEC since 2020. Approval expectations for Solana and Ripple for spot ETF applications are increasing. We have experienced with both Bitcoin and Ethereum that approval expectations and approval news in ETF applications have a positive impact on the price. For this reason, it is normal that it also works for Ripple and Solana. We know from Ethereum that post-approval price movements are affected by the continuity of investments made in these funds. Although Spot Ethereum ETFs have not yet shown the expected performance, they gave signals that they started to receive investments at the beginning of last week, but continuity is essential.

Anticipating that a more flexible cryptocurrency policy will be implemented in the new period, American stock exchanges also contribute to the increase in value in cryptocurrencies by paving the way for their own customers to invest in projects with new listings. Robinhood’s listing of PEPE before America’s largest cryptocurrency exchanges; Then, Coinbase’s announcement that it would list PEPE, WIF and FLOKI brought about significant value increases in these memecoins.

On the other hand; The announcement of DOGE, abbreviated with the initials of the department established for government efficiency under the leadership of Elon Musk, contributed to the increase in the value of the cryptocurrency DOGE. It’s a nice coincidence that he established a department with the same initials as the cryptocurrency he declares himself to be the father of (!) DOGE’s name seems to be on the agenda more frequently in the coming period.

In summary; Cryptocurrency markets have rallied well over the past two weeks with positive inflows and value increases. We saw both new entries and profit taking. There is a spring mood in cryptocurrencies with the Trump administration, but at the time of writing, I see a news flow on the Ukrainian and Russian side. For this reason; Let’s not forget that cryptocurrencies are in the risky asset class and may be affected by macroeconomic developments and geopolitical tensions, and I wish everyone a good week.

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