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All eyes in the traditional financial world were on the Consumer Price Index (CPI) today. The inflation-tracking index revealed that inflation in the US has fallen to 4.9%, down from 9% less than a year ago.
Bitcoin made a quick upward move in response, gaining 2.1% by the end of the day. Now, analysts are closely watching Bitcoin to see if the token can break through the key $30,000 price level and make a major move higher.
However, Bitcoin’s bullish action was hardly the biggest crypto news of the day. A new meme coin, $NOMEME, exploded 700% after a tweet from Elon Musk. Traders are now piling into the token to get in on what could be the next meme coin to 10x.
Positive Inflation News is Positive Catalyst for Bitcoin
The CPI release is outstanding news for Bitcoin bulls from a fundamental perspective.
High inflation and rising interest rates sent investors running for safe-haven assets like gold and treasuries, with cash flowing out of riskier assets like stocks and crypto. The CPI data suggests that inflation is cooling down at a fast pace and could soon return to the target 2% level.
Reduced inflation on its own doesn’t impact Bitcoin directly, since Bitcoin is designed to be independent from the dollar and thus inflation-proof. However, Bitcoin’s price is closely tied to interest rates, and the crypto market overall has been hit hard by rising rates.
The new CPI data could put a halt to the Federal Reserve’s interest rate hikes. Already, the Fed has suggested that it could pause rate increases.
Steady or even falling interest rates create a positive macroeconomic environment for Bitcoin, which relies on investors seeking out high yields in a relatively volatile asset. Analysts across the financial world believe falling rates could boost demand for the world’s most popular cryptocurrency.
Analysts Eye $40,000 Price Target for BTC
The CPI news could be the catalyst Bitcoin needs to make a significant move higher after moving sideways for the past several weeks.
After gaining 65% over the first two months of the year, BTC has been in a consolidation pattern between $27,000 and $30,000 since mid-March. $30,000 represents a strong technical and psychological resistance level for Bitcoin.
A breakout above $30,000 is likely to push Bitcoin to new heights. The next major resistance level is around $40,000.
That coincides with the price target set by analysts like Mike Novogratz, founder of Galaxy Digital Holding, and crypto influencer Kaleo. Kaleo warned followers that the price move to $40,000 could happen quickly, leaving behind any traders who are waiting for a dip to enter.
Musk Tweet Sets Off $NoMeme Buying Frenzy
The CPI news was overshadowed in the crypto world today by a tweet from Twitter CEO and meme champion Elon Musk.
Musk tweeted an image of a Milady Maker NFT with the caption “There is no meme. I love you.”
Almost immediately after the tweet, someone launched a token called NoMeme ($NOMEME) on decentralized exchange Uniswap. Within an hour, $NOMEME had pumped more than 700%.
The floor price of the Milady Maker NFT collection also skyrocketed to 4.93 ETH, or more than $9,000. The collection of 10,000 10,generative pfpNFTs has a total volume of 42,157 ETH.
According to DEXTools, $NOMEME now has a market cap of $3.6 million and a trading volume of $20.4 million. The total locked liquidity is $2.24 million, nearly two-thirds of the token’s market cap.
$NOMEME Could Be Next Meme Coin to 10x
Crypto traders are already suggesting that $NOMEME could be the next meme coin to 10x.
The token launched during a red-hot week of meme coin trading. PepeCoin ($PEPE) exploded more than 8,000%, although trading volume has declined and it now appears to be past peak trading.
SpongeBob token $SPONGE is still climbing after gaining more than 1,100% and listing on six centralized exchanges in less than a week.
Even after the 700% price gain $NOMEME has experienced so far, the token has room to run. It has a $20.4 million market cap, while $PEPE had a market cap of $1.7 billion at its peak.
For now, $NOMEME is only available on the decentralized Uniswap exchange, limiting its access to more traders. However, that could change quickly.
Centralized exchanges, hit hard by the crypto winter, were quick to list $SPONGE in an effort to earn trading revenue. A major exchange listing could be an enormously bullish catalyst for $NOMEME that sends the token’s price skyrocketing.
It’s also possible that Musk himself will throw his support behind the new meme coin he inspired. Musk has a long history of pumping meme coins he likes, most famously Dogecoin.
Musk’s status in the crypto world means that even a hint of support for $NOMEME could take the current buying frenzy to the next level.
Traders can buy $NOMEME using a Uniswap embed on the token’s website.
DISCLAIMER: This is not to be taken as investment advice. Crypto is a volatile asset, do your own research before investing and only invest money you can afford to lose. We may receive commission for clicking links in this article.
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