While the US Federal Reserve (FED) cut interest rates by 50 basis points on Wednesday, energizing the Bitcoin (BTC) and cryptocurrency markets, some altcoins made more significant gains than the market.
These altcoins include Solana-based POPCAT, cat in a dog's world (MEW), Ethereum-based MOG, and BNB Chain-based Simon's Cat (CAT), and these altcoins have gained significant gains of up to 40% during the week.
According to analysts, this situation shows that risk appetite has returned to the cryptocurrency market.
Speaking to Coindesk, Gotbit Hedge Fund founder Alex Andryunin, known for supporting memecoins, commented on the recent increases.
Stating that he expects memecoins and altcoins to continue their rise in the coming months, Andryunin said:
“Memecoins are largely on the rise due to the anticipation of increased liquidity following the Fed’s recent 0.5% interest rate cut.
Market expectations for lower rates have combined with the possibility of more liquidity entering the financial system, and investors are bullish.
This shows that the rise will continue next month as well.”
Andryunin predicted that the memecoin market would grow significantly over the next two months, adding that “increased liquidity and increased risk appetite could drive investors into these high-risk, high-return assets, potentially leading to a boom in prices similar to previous cycles.”
*This is not investment advice.