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Bitcoin Approaches $64K as 'Cat Tokens' Memecoins and AI Tokens Drive Growth

SUMMARY

Bitcoin surged close to $64,000, rising 3%, alongside a market-wide rally ahead of key U.S. economic data.
Major cryptocurrencies like Ether and Dogecoin increased by up to 4%, while Pepe saw a 14% jump.

Bitcoin neared $64,000 amid early Asian trading, rising 3% ahead of a significant U.S. data week. The Federal Reserve is set to release FOMC minutes and key economic figures from August. This increment in Bitcoin led to a market-wide bounce, with Ethereum and Dogecoin climbing by up to 4%. The CoinDesk 20, a tracker for major cryptocurrencies, gained 3.26%. In the mean time, the frog-themed Pepe memecoin saw a sharp 14% rise, signaling developing interest in niche tokens.

In the broader economic scene, the Bureau of Labor Statistics (BLS) is preparing to release critical information. This includes the unadjusted CPI rate, PPI rate, and initial jobless claims for early October. Asian stocks reacted emphatically, with Hong Kong’s Hang Seng index jumping 3%, whereas Korea’s KOSPI added 1%. The People’s Bank of China has introduced a few stimulus measures, boosting regional market estimation. Further economic bolster from China is anticipated in an upcoming press conference.

Bittensor’s TAO, a mid-cap token, led gains with a 14% jump, driven by increased interest in artificial intelligence tokens. The category, tracked by CoinGecko, is up 7.5%, with AI tokens like Near and Internet Computer (ICP) also performing well. In the interim, memecoins experienced a surge over the end of the week, fueled by rising social sentiment and risk-taking behavior among crypto traders. The so-called “memecoin supercycle,” a forecast that meme-based tokens will drive the next bull market, gained traction on social media platforms.

Solana-based POPCAT and Ethereum-based MOG increased by over 12% in the last 24 hours. BNB Chain-based Simon’s Cat rose 10%, while smaller tokens like GIGA, SPX6900, and Fwog saw gains of more than 20%. Cat-themed memecoins continued to outperform dog-themed ones, keeping up their status as the favored riskier bets in the current market. This interest in memecoins continues amid low volatility in divisions like layer-2s and storage tokens, which are seen as less exciting by retail traders.

Despite the current excitement, a few traders stay cautious. Kaiwen0x, a notable market participant, communicated bearish views on memecoins if Donald Trump wins the 2024 election. According to them, a Trump victory might bring administrative clarity to the U.S., provoking a shift in capital toward utility tokens and diminishing focus on memecoins.