The cryptocurrency market started the week positively after a late slump on Friday. Bitcoin rose to $68,500 early Monday, reaching a 24-hour high of $69,225. The regain in momentum erased weekend losses, disappointing Bitcoin bulls at the weekly close on Sunday.
The market downturn last week was triggered by news of the U.S Department of Justice investigating Tether, disrupting the positive sentiment of late October. Tether CEO Paolo Ardoino refuted the claims, stabilizing crypto prices.
With three days left in the month, analysts predict increased volatility in the crypto market, likely influenced by the U.S. Election Night and anticipated Fed rate cuts.
Memecoins Take the Lead Over AI Tokens
Driven by sentiment rather than utility, memecoins have captured the interest of speculators in Q4. Projects in this category emerged as top performers in October.
TradingView data shows that DOGE, POPCAT, and NEIRO have recorded gains of 40%, 49%, and 57%, respectively, outperforming other major altcoins this month. Among the top 100 cryptocurrencies, only Raydium (RAY) from the Solana ecosystem has seen higher returns.
Conversely, AI-focused tokens experienced losses in the same period. TAO, NEAR, and RENDER prices dropped by 6.5%, 14%, and 19%, respectively.
The contrasting performance of memecoins and AI tokens highlights the cyclical nature of market trends. AI tokens previously dominated, driven by Nvidia developments. The rise of new memecoin players like NEIRO and GOAT showcases the influence of retail-driven sentiment over fundamentals.
Narratives to Shape the Q4 Crypto Landscape
October witnessed various crypto trends, including the blend of AI and crypto. Yet, memecoins remain favored, with many investors focusing on speculative opportunities rather than long-term fundamentals.
CryptoQuant founder Ki Young Ju noted the growing interest in memecoins, set to reach new search record highs. Meanwhile, Bitcoin searches hit yearly lows earlier this month.
The allure of memecoins lies in the potential for substantial returns for early investors, based on historical cycles. Trader fatigue from waiting to secure profits has also boosted the demand for these highly speculative assets.