Bitcoin (BTC) is stuck in a narrow trading range between $94,000 and $100,000, leaving investors confused about its next move. Memecoins Under the Scrutiny as Bitcoin Stagnates Below $100K While BTC’s history of stair-stepping price movements typically leads to breakouts, this time the range has tightened rather than widened, triggering concerns reminiscent of the 2018 market recession. Industry leaders at Consensus Hong Kong pointed to memecoin speculation as a key factor behind BTC’s stagnation and the slowdown of the broader altcoin market. Market makers argued that the liquidity drain caused by memecoins was choking price action. Memecoins: A Net Negative for the Market? “Crypto natives are exhausted due to the saturation of memecoin launches,” Evgeny Gaevoy, CEO of market maker Wintermute, told Consensus. He noted that tokens like TRUMP, linked to former US President Donald Trump, and LIBRA, backed by Argentine President Javier Milei, are driving liquidity away from more established cryptocurrencies. The impact of this was seen across the market: TRUMP's market cap rose to $12 billion within 48 hours of his launch in January but then dropped to $3 billion in February. LIBRA crashed even faster, wiping out $251 million in investor funds. Chainalysis data showed that while early buyers made a profit, around 800,000 investors lost $2 billion due to panic selling and price drops. Fabio Frontini, founder of Abraxas Capital Management, has argued that memecoins should be banned, calling them a net wealth destroyer. Meanwhile, Auros Chief Commercial Officer Jason Atkins warned that memecoins expose the fragility of the market and make institutional investors hesitant. “Institutional players want a mature, stable market that can absorb large volumes without being disrupted by meme-driven speculation,” Atkins said. BTC Price Outlook: Breakout or Bust? Some traders are worried that BTC’s tight consolidation could lead to a crash similar to 2018, when BTC remained in the $6,000-$6,400 range for weeks before falling. But Gaevoy believes the current cycle is different, citing regulatory tailwinds that could boost the market. “We forget how restrictive the SEC and CFTC have been in recent years. That regulatory burden has been removed, and I don’t think the market has fully priced that in yet,” Gaevoy says. *This is not investment advice. Continue Reading: Memecoins Suck Up Market Liquidity As Bitcoin Price Stuck in a Tight Area! What Happens Next? Here Are the Details
