PANews reported on February 7 that Matrixport pointed out in a report that many traders may make emotional trading decisions, but Bitcoin always responds rationally to macroeconomic, monetary and liquidity events. After Trump's victory in November 2024, Bitcoin and altcoins both surged as the market generally expected that he would establish strategic Bitcoin reserves and position the United States as a global cryptocurrency center. However, the hawkish tone at the December FOMC meeting suppressed liquidity expectations. Market sentiment remained strong until Trump's inauguration on January 20, but uncertainty gradually increased afterwards.
Unlike the new DeFi cycle in the 2020/2021 bull run, the era of memecoins and Pump.fun has arrived. The two main beneficiaries of the Pump.fun memecoin craze were Solana and Raydium, but the hype-driven momentum quickly faded as daily trading activity declined. Daily memecoin issuance on Pump.fun has decreased by 16% over the past 30 days, indicating that speculative interest is waning. A key factor in this slowdown is Trump Memecoin, which attracted a large number of retail investors to enter the market at unfavorable prices.
Despite the recent surge in the price of Raydium (RAY), a notable trend has emerged: the number of wallets holding more than 10,000 SOL has dropped sharply in the past two months, indicating that large holders are selling, which may suppress the continued rise in the price of SOL. However, this may also indicate that early whales who accumulated SOL before the memecoin cycle in late 2023 are now cashing out and reallocating their gains to Bitcoin. This rotation may explain why Bitcoin remains resilient despite the overall correction in the mountain currency market.
