Bitcoin, Ethereum Liquidity Is Flowing Into Memecoins, Says Crypto Trader

A pseudonymous crypto trader known as Crypto Tony on Monday suggested that liquidity is flowing from Bitcoin BTC/USD and Ethereum ETH/USD into meme coins. 

What Happened: In a tweet to his 289,000 followers, the analyst pointed out that this could be the reason for the recent “SELL IN MAY” phenomenon.

CryptoTony’s comments come at a time when meme coin Pepe coin PEPE/USD is experiencing a 2,300% rally in the past 30 days, surpassing Dogecoin DOGE/USD in trading volume over the past 24 hours.

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Why It Matters: The crypto trader revealed that he is still waiting for a position entry on Bitcoin, and his best option would be to wait for a long position upon a test of the range low at $26,600. He also suggested that he may even go for a short if they fail to hold this position.

The analyst on Sunday predicted that Dogecoin DOGE/USD will double in value but only after reaching new lows. He said either “Bitcoin BTC/USD will go on a tear” to bring other altcoins up or Bitcoin will fall and bring altcoins up, but either way he is keeping a close eye on Altcoins in the third and fourth quarter of 2023. 

Price Action: At the time of writing, BTC was trading at $28,100 down 1.78% in the last 24 hours, according to Benzinga Pro.

Read More: Bitcoin, Ethereum, Dogecoin Trade Mixed Amid Regulatory Uncertainty: Analyst Says Apex Crypto Isn’t Getting A Boost Despite Upbeat Mood On Wall Street