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Bitcoin Memcoins and Rune Protocol Becoming Traders Bet Following Expected BTC Halving Slump

Last Updated April 11, 2024 12:46 PM
Nikola Lazic
Last Updated April 11, 2024 12:46 PM

Key Takeaways

  • Arthur Hayes predicts Bitcoin downturn post-halving.
  • Meme coins,NFTs, and other BTC ecosystem projects are gaining traction pre-halving.
  • Runes protocol launch set to innovate Bitcoin token issuance.

The imminent Bitcoin halving event sets the stage for a fascinating shift in the cryptocurrency market. As the countdown to this pivotal moment in the crypto calendar accelerates, Arthur Hayes, a seasoned crypto trading and macroeconomic analyst, presents a thought-provoking perspective on the potential outcomes of the halving. 

Tokens, projects, and other aspects of the Bitcoin ecosystem are being viewed as potential alternatives to look into if the price of the original asset slumps.

Buzzing With Anticipation

In his recent analysis, Hayes anticipates a downturn for Bitcoin, a prediction that diverges from the typically bullish expectations surrounding such events.

This forecast is not unfounded; it’s based on a detailed examination of market dynamics, liquidity flows, and a changing economic backdrop that, according to Hayes, could mute the positive momentum traditionally associated with Bitcoin halvings.

Despite these challenges, the broader cryptocurrency ecosystem is buzzing with anticipation.

Traders and investors are poised to pivot towards other avenues within the Bitcoin network and related projects, seeking to capitalize on potential gains. Meme coins, ecosystem tokens, and NFTs (Non-Fungible Tokens) are drawing particular interest, heralding a period of heightened activity and speculation.

Bitcoin-base Memecoins Draw Attention 

In the week leading up to the Bitcoin halving and the debut of the Runes protocol, the Bitcoin meme coin Pups has seen an astronomical rise of 1160.8%, starting at $22.50 and jumping 44% on Tuesday alone. With a maximum supply of 7.7 million coins, Pups boasts a market capitalization exceeding $376 million, trading around $49, according to CoinGecko.

CoinGecko data
Rune Protocol Price

The Pups team has also revealed plans to transition from the BRC-20 standard to the new Runes protocol in alignment with the upcoming Bitcoin halving. This move aims to embrace a more decentralized framework, reflecting the inherent principles of Bitcoin.

Adopting Runes is expected to consolidate the decentralized nature of Ordinals (NFTs) and Runes (tokens) under a unified ecosystem, enhancing the indexing and integration of these digital assets.

Runes Protocol Launch Could Be The Catalyst

The Runes protocol, set to launch in April 2024 alongside the Bitcoin halving, is a new token standard developed by Bitcoin developer Casey Rodarmor. It is designed to issue fungible tokens on the Bitcoin network, providing a more efficient mechanism for creating such tokens. 

Rodarmor, known for creating the Ordinals Protocol, proposed Runes in September 2023 to enhance fungible asset issuance on Bitcoin.

Despite its pending launch, several developers are already working on projects utilizing the Runes protocol, such as Runealpha, PipeBTC, and RSIC, showcasing its potential impact on the Bitcoin ecosystem.

As the launch of Runes Protocol is scheduled for April 20, after the Bitcoin halving, the hype around this Bitcoin memecoin sector could hit the market.

Ordinals (ORDI) Lead The Way 

Ordinals have become a groundbreaking addition to the Bitcoin ecosystem, introducing a novel form of digital assets known as Ordinal Inscriptions.

These assets, akin to non-fungible tokens (NFTs), are inscribed directly onto satoshis, the smallest unit of Bitcoin. This capability stems from the Taproot upgrade, implemented on November 14, 2021, which enhances Bitcoin’s flexibility and privacy.

Daily chart

The price of the ORDI token has gained over 40% in  April, from a low of $56 to a high of $80 recently. However, its price is still within the confinement of the symmetrical triangle that formed on January 2, when the price ended its five-wave advancement. 

The symmetrical triangle established above the 0.382 Fibonacci retracement makes the possibility of this structure being its higher degree wave 4 higher. As ORDI approaches its resistance, we could see another reversion back to its ascending support, making yet another higher low. 

Since the halving is around the corner, it coincides with the imminent breakout from this symmetrical triangle. Considering the bullish sentiment around it and what the chart tells us, ORDI could see a breakout to the upside, leading to a new all-time high above $110. 

Conclusion 

As the Bitcoin halving nears, Arthur Hayes anticipates a downturn for Bitcoin, contrasting with the typically bullish outlook. Despite this, the crypto sphere is abuzz, particularly with the rise of meme coins like Pups and the introduction of the Runes protocol, signaling a shift towards more decentralized digital assets. 

Developed by Casey Rodarmor, the Runes protocol aims to streamline the issuance of fungible tokens on Bitcoin, heralding a new phase of innovation.

Alongside, Ordinal Inscriptions bring NFT-like functionality to Bitcoin, further enriching its ecosystem. As these developments unfold, the cryptocurrency market braces for significant change, reflecting its ever-evolving nature.

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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