- Shiba Inu rallied 20% in the past day.
- Monetary policy in China is easing dramatically.
- “There is a lot of pent-up demand in this market,” said a crypto CIO.
The crypto industry’s biggest market movers are tokens named after dogs and a frog meme.
Memecoins like Floki, Shiba Inu, Bonk and Pepe soared double-digits overnight, according to CoinGecko.
Even the larger and more liquid $17 billion Dogecoin jumped almost 8% in the past day.
As the former Deutsche Bank trader and BitMEX founder Arthur Hayes puts it. “Let the good times roll.”
The rising appetite for even riskier bets than cryptocurrencies like Bitcoin and Ethereum comes as monetary policy worldwide is loosening.
Last week, the Federal Reserve slashed rates by half a percentage point. It was the biggest cut since March 2020, when Covid roiled financial markets.
On Tuesday, China followed suit. Officials in Beijing unveiled a slew of monetary measures, including rate cuts, cash handouts, and plans to issue $284 billion worth of bonds.
The massive stimulus package aims to help the world’s second-largest economy hit its 5% growth target this year.
David Tepper, the billionaire hedge fund manager, said he’s buying “everything” related to China.
The S&P 500 Index has soared 2.4% since the start of rate cuts in the US. The Nasdaq rose 3.5% in the same period.
Bitcoin and Ethereum have rallied 10% and 15%, respectively, according to CoinGecko.
“People wanted an excuse to buy and China gave them an excuse,” said Matt Hougan, CIO of crypto asset management firm Bitwise.
“There is a lot of pent-up demand in this market.”
