Trump's felony charges are confirmed, related meme coins plummet over 30%
$69,000 is a key level for BTC.Author: Mary Liu, BitpushNews
On Thursday, the cryptocurrency market saw a slight overall increase. Bitcoin reversed its downward trend during the midday session after dropping to the support level of $67,000 overnight, briefly reaching an intraday high of $69,536.
Altcoins showed mixed performance, with tokens ranked in the top 200 experiencing both gains and losses. Notcoin (NOT) performed the best, soaring 39.1% to $0.13, JasmyCoin (JASMY) rose 24.2%, and DOG•GO•TO•THE•MOON (DOG) increased by 23.3%. Meme tokens cat in a dogs world (MEW) and dogwifhat (WIF) saw the largest declines, falling 16.8% and 9.1%, respectively, while Chiliz (CHZ) dropped 8.1%.
The current overall market capitalization of cryptocurrencies is $2.55 trillion, with Bitcoin's market share at 53%.
Trump-related Tokens Decline
In the meme sector, Trump-related meme tokens experienced widespread declines due to the impact of Trump's felony charges. On Thursday afternoon local time, a New York jury found Trump guilty on all 34 counts, accusing him of falsifying business records, making him the first former U.S. president to be convicted. The judge set Trump's sentencing date for 10 a.m. Eastern Time on July 11, and parties involved can file motions before June 13.
Following this news, lower market cap Trump meme tokens plummeted significantly, with TRUMP dropping 35% in the short term, and MAGA Hat (MAGA) crashing from about $15 before the verdict to $11.27 shortly after, a nearly 25% drop in just over an hour. As of the time of writing, MAGA has slightly rebounded to $12.37. Super Trump (STRUMP) also fell by 16%, while MAGA VP (MVP) dropped 22% within an hour.
Meanwhile, the meme token Jeo Boden, inspired by U.S. President Joe Biden, surged 20% in the short term.
Despite this, traders on the blockchain prediction market Polymarket still expect Trump to defeat Biden in the November election. As of the time of publication, Polymarket predicts a 56% chance of Trump winning the election, compared to 38% for Biden.
Additionally, according to an NPR/PBS NewsHour/Marist poll released Thursday morning, nearly three-quarters of registered independents stated that Trump's conviction would not affect their voting. According to CNBC, Trump's legal troubles will not prevent him from running for president, as the U.S. Constitution does not prohibit felons from holding the highest office.
However, it remains unclear what impact Trump's criminal conviction will have on his presidential campaign against Joe Biden.
$69,000 is a Key Level for BTC
Cryptocurrency analysts indicate that if BTC can effectively hold the key resistance level of $69,000, which was its record high in 2021, it will enter a price discovery phase.
Analysts from Secure Digital Markets warn that if the price falls below this level again, it could lead to a drop below $67,000, noting that "a breach of this threshold could signal a further decline towards $65,000, in line with the 50-day moving average."
Market analyst Bloodgood believes that during the two-and-a-half-month consolidation period, Bitcoin's price has been hovering around the $69,000 level, and he will wait for Friday's Personal Consumption Expenditures (PCE) report and Bitcoin's weekly closing price before deciding on the next steps.
CryptoQuant analyst Tarekonchain emphasized the "MVRV (Market Value to Realized Value) indicator," which is said to "accurately warn of Bitcoin price tops and bottoms."
Tarekonchain stated, "As long as the MVRV value is below 2, it indicates a sustained accumulation zone, meaning the price is still below its true value. In previous cycles, when this indicator reached 3.5 or above, peaks always occurred. At these levels, we begin to gradually exit the market, as it indicates that a peak has been reached or is very close."
They added, "Currently, the MVRV value is 2.3, which means there is still significant room for price appreciation to reach Bitcoin's fair value. Even if the price drops, this is a new strengthening opportunity. Exiting should only begin when the indicator approaches 3."
Tarekonchain concluded, "This means we are still some distance from the peak, and BTC prices are likely to reach new highs in this cycle, possibly exceeding $100,000."
