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Baffling Bull Market: Analysts Are Scratching Their Heads Over the Nature of Price Pumps

Memecoins overpowering Bitcoin: This bull market is nothing we’ve seen before 

Crypto industry analysts are describing the current Bitcoin halving cycle as the "weirdest" bull market on record, following a premature Bitcoin all-time high and a massive rush into memecoins. On April 1, Chainlink community liaison Zach Rynes, also known as 'ChainLinkGod,' shared his thoughts with his 171,000 followers on X, stating: 

"this bull market has been weird."

Traditionally, bull runs would see liquidity flow into Bitcoin before moving into Ethereum and other high-capitalization coins, eventually trickling down the chain. However, according to Rynes, the market "skipped a couple of steps that we have seen with previous cycles," with flows going from BTC straight to memecoins, which he described as "a bit unusual."

Memecoin market capitalization surges to $70 billion

The total capitalization of memecoins surged to $70 billion on April 1, primarily driven by pumps in newly launched tokens such as Solana-based 'dogwifhat' (WIF) and Book of Meme (BOME), as well as older memecoins like Pepe (PEPE) and Bonk (BONK). The Coinbase layer-2 network Base has also become a hotbed of memecoin speculation, with the recently launched Base-native token DEGEN skyrocketing an eye-watering 2,800% over the past month. DEGEN is an unofficial token that was distributed to the community on the decentralized social network, Farcaster.

Rynes added that market fundamentals are not playing much of a role at the moment, stating: 

"There's some retail money that's entered, but nowhere near the levels we've seen before; we're in an attention economy based on specific narratives, not real fundamentals."

Bitcoin hits all-time high before halving, adding to market weirdness

Another factor contributing to the peculiarity of this market cycle is that Bitcoin has reached an all-time high before the halving. In previous cycles, the Bitcoin all-time high arrived the year after the halving. The asset hit $73,734 on March 14, and the BTC halving is just 18 days away, due on April 20. Analysts have already predicted that the pre-halving retrace is over.

Ethereum educator Anthony Sassano echoed the sentiment on April 1, saying that after around a decade in crypto: 

"I can say with full confidence that this is, by far, the weirdest bull market crypto has ever had." 

He added that retail is not here "in any meaningful way" until the entire market goes up together, rather than these

"isolated sector-specific pumps that are very obviously pushed by crypto natives and just involve a hot ball of money rotating around."