Arthur Hayes the co-founder of BitMEX is investing in memecoins including MOTHER, MOG and PEPE.
Shiba Inu is expected to experience better price gains in October.
PEPE might see possible sell-offs despite its bullishness as of late.
BONK's rally may be losing momentum as indicated by its declining open interest.
Investors should be cautious when investing in memecoins as they are highly volatile.
The crypto market is gearing up for a massive "Uptober" trend. This period is historically marked by upward price movement on Bitcoin and the general altcoin market.
As it turns out, Arthur Hayes the co-founder of BitMEX has shifted his focus toward memecoins.
In a recent post on Twitter (X), the billionaire investor revealed that he is actively building a memecoin portfolio in anticipation of the rally.
Let’s see which memecoins he has in mind and which other ones are likely to jump soon.
Hayes is currently on the hunt for the next big thing in the memecoin space. The BitMex co-founder has even started making major moves to this effect as highlighted in this tweet:
As highlighted, his portfolio includes popular choices like Mother Iggy (MOTHER), Mog Coin (MOG) and Pepe (PEPE).
Interestingly, all of these have experienced strong price increases lately—particularly the ones tied to the Solana network.
Recent data also shows that Hayes is heavily invested in the memecoin space.
He even recently invested $250,000 in PEPE tokens on Binance according to insights from SpotOnChain.
He has since withdrawn around 24.39 billion of the tokens for self-custody.
So far, his bets on these memecoins have shown returns with $PEPE recently surging by 35% (even though it has dipped since then).
Shiba Inu is another major player in the memecoin space. Dogecoin’s sister cryptocurrency has also garnered attention as it enters what could now be its most bullish month of 2024.
Historically speaking, the cryptocurrency performs extraordinarily well in Octobers.
So much so that analysts now predict that its price could more than double during the month to $0.00006.
Shiba Inu’s historical performance
The cryptocurrency also has a strong track record of performance in the final quarter of the year.
Data from CryptoRank shows that the memecoin had an average return of +283.4% in Octobers as illustrated above.
This means that the price could triple before the month runs out if the cryptocurrency follows this trend once again.
Shiba Inu might be on the cusp of reaching a new ATH if this bullish momentum also continues until further in the year.
Interestingly the last time Shiba Inu ended September in the green was in 2021 where it surged by a staggering 833% in October.
Arthur Hayes bought PEPE as highlighted above.
However according to the charts, the cryptocurrency is facing a challenging road toward its all-time high of $0.00001725.
To start with, its Market Value to Realized Value (MVRV) Ratio currently sits at 33% according to Santiment.
Pepe’s current MVRV
This means that corrections are a lot more likely. Things like these happen because investors sitting on profits may opt to sell and secure their gains.
This in turn puts downward pressure on the coin’s price.
Historically when PEPE’s MVRV ratio reaches levels between 13% and 47%, a sell-off tends to follow.
Pepe’s token summary on IntoTheBlock also shows that around 81% of investors are currently in profit.
Token summary on Pepe
This means that a lot more than half of PEPE investors are currently sitting on gains.
If enough holders decide to sell, we might see a period of consolidation or even an outright crash.
BONK has also surged massively over the past week. CoinMarketCap data shows that the cryptocurrency is up by as much as 41.92% over the last week—which is highly impressive.
Bonk’s price performance
However, there are ongoing signs of an incoming correction as the market heats up.
For example, the cryptocurrency’s futures open interest has dropped by as much as 29% in the past few days—which is surprising considering the ongoing rally.
This could mean that fewer new traders are entering the market and that BONK’s rally may be losing steam.
A decline in open interest
Additionally, the memecoin currently has an RSI reading of more than 70 with widening Bollinger bands.
These indicators show that the coin might be overbought despite the displays of strength from the bulls.
It is important to remember that while memecoins are an important part of the crypto market, they are a lot more volatile than the average crypto.
Shiba Inu and PEPE are showing promise as opposed to PEPE and BONK which seem poised to rally but are facing significant hurdles.
Investors should always proceed with caution, do proper research, use good risk management and stay mindful of market forces.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.