09 May 2023
Worrying memecoin rally as BTC reigns stableSurging on-chain fees, directionless chop.
The on-chain fees on Bitcoin surged over the past week. We elaborate on why, its short-term implications on the market, and how this may lead to increased selling pressure from miners onwards. Further, we explore some interesting short-term developments in the perp OI following the Monday market headwinds.
- Three consecutive Tuesdays of BTC in the $27,000s
- BTC Perp OI up 5% on Monday
Bitcoin remains rangebound and has now traded in the $27,000s for three consecutive Tuesdays. Bitcoin’s prolonged directionless pattern has impacted most major alts as well, whose pattern reflects that of BTC. As conditions remain stable, the market has re-rotated its focus to memecoins, which has often tended to be a negative market impulse, suggesting an over-eager risk appetite.