Bitcoin Languishes as ETF Optimism Subsides; PEPE Takes the Lead in Altcoin Profits
First Mover Asia: Bitcoin Tempts $30K as Investors Eagerly Await ETF Approval
First Mover Asia: Bitcoin Bounces Back to $30.1K Following Dip to June's Lowest Point
Pepecoin (PEPE) investors could be cashing out their holdings following one of the most astounding surges in the history of altcoins, as its value has skyrocketed by nearly 5,000,000% in just the past few weeks.
After reaching a high of $0.00000431 and attaining a market capitalization of $1.8 billion just over three weeks since its launch in mid-April, the tokens have plummeted by almost 45%.
The decline in price could have been amplified by traders who were cashing in on their profits or employing sophisticated trading tactics, particularly after the launch of several pepe-tracked futures in the previous week.
It is probable that these profits are being converted into ether (ETH), which has recorded its highest number of deposits to exchanges since November 2021, when it reached an all-time high of $4,500.
On Monday, Santiment, an on-chain analytics company, tweeted that the surge in the number of ether deposits might be a result of traders cashing in on their pepe holdings.
“Exchange addresses interacting on the network is now at its highest level since November, 2021. As expected, $ETH is showing decoupling signs and on the cusp of breaking $2k once again,” Santiment said.
Consequently, a few traders have turned small amounts of money into life-changing wealth within a few days by investing in pepe coins shortly after they were released.
CoinDesk previously covered the story of an anonymous trader who goes by the username dimethyltryptamine.eth. The trader invested a mere $263 in purchasing trillions of PEPE tokens just three weeks ago and later sold a portion of their holdings for over $3.8 million in profits. Despite the recent price drop, the trader still holds PEPE tokens valued at over $5 million as of Monday.
While some investors have experienced a remarkable surge in their fortunes due to PEPE's rapid rise in value, such occurrences are not typical. Analysts have expressed concerns regarding the actions of investors who acquired significant amounts of PEPE immediately after its launch on the Ethereum blockchain. These large concentrations of the coin in a few hands may pose a risk to the short-term future of the meme coin.
Source Coindesk