Wednesday’s dovish Consumer Price Index (CPI) reading appears to have begun the second phase of the cryptocurrency bull market.
Bitcoin price reached a May high of $66,500 during Asian trading hours on Thursday. Meanwhile, Ethereum price was trading at a high of $3,040, reflecting the bullish stance of large-cap altcoins.
AI-powered cryptocurrencies like Near Protocol and The Graph and meme currencies like Shiba Inu and Book of Memes were among the biggest winners in the crypto space today.
There is also high demand for new meme currencies such as WienerAI and Dogeverse as CPI inflation brings a higher degree of risk.
Bitcoin and Ethereum Rising – Is the Bull Market Coming Back?
Wednesday’s CPI emerged as a big win for bullish investors, with nearly $50 million of short positions liquidated over the past 24 hours.
Fed Chairman Jerome Powell actually adopted a dovish stance during his speech to the Federal Open Market Committee earlier this month. Now with the monthly headline CPI beating consensus and the core CPI slowing for the first time in six months, the hype about interest rate cuts has returned to the market.
While the CME FedWatch tool is still only pricing in two rate cuts in 2024, analysts believe the dovish shift in the Fed’s stance is enough for a “significant rally for stocks and cryptocurrencies.”
The CPI fell to 3.4%.
The 15M chart shows some trend. SP500 is about to print a new ATH.
Interest rate cuts in 2024 still loom.
Before that, the top of stocks and cryptocurrencies exploded. (Expectation) pic.twitter.com/RfAr0VgOKr
— Gert van Lagen (@GertvanLagen) May 15, 2024
Cryptocurrency prices have already broken through crucial resistance levels, indicating that the second phase of the bull market may now be underway.
For example, Bitcoin is now trading above the important level of $64,400. A daily close above this level may lead to a head towards a new all-time high.
$BTC/$USD – Update
I am now above $64,400. The bulls’ mission is to hold on top today pic.twitter.com/2FmQ6ZH755
– Crypto Tony (@CryptoTony__) May 16, 2024
Ethereum price also formed a bullish cup and handle scenario. A weekly close above the breakout level has an impressive long-term price target of $10,000.
New Meme Coins Are In High Demand, Can Dogeverse and WienerAI Deliver 100x Returns?
Low macroeconomic risk typically causes whales to engage in a high degree of risk-taking, which is a decidedly bullish outcome for meme currencies.
Immediately, tokens like Shiba Inu and Book of Memes are surging, with the latter up 20% today.
New coins like WienerAI are also showing their strength. $WAI is fast approaching the $2 million mark in its pre-sale, with experts suggesting it could potentially be the next 100x coin.
Aside from WienerAI’s commemorative mascot — a part sausage, part dog hybrid — the meme coin also provides an important real-world utility.
The WienerAI trading bot is a key aspect of a token’s brand value. It offers valuable insights into the cryptocurrency market, enables seamless swaps and provides MEV protection. In addition, the $WAI staking protocol offers high annual returns, currently over 500%.
Meme coins with real-life utility are always in high demand. Another example is the multi-chain meme token Dogeverse, which is the first meme coin to be launched on 6 different chains. Chains include Ethereum, Base, Solana, Polygon, Avalanche, and BNB Chain.
Dogeverse has currently raised over $15 million in pre-sales with hopes of launching on every popular DEX and CEX in each of the six blockchain ecosystems.
Similar to WienerAI, experts view Dogeverse as the next 100x meme coin.