As Bitcoin Price Consolidates in a Narrow Range, Memecoins Absorb Market Liquidity! What Will Happen Next? Here are the Details

Bitcoin (BTC) stuck in a narrow trading range between 94,000 dollars and 100,000 dollars, leaving investors puzzled about its next move.

While Bitcoin Stagnates Below $100,000, Memecoins Are Under Scrutiny

BTC's step-by-step price movements typically lead to breakouts in the past, but this time, instead of expanding the range, it tightened and triggered concerns reminiscent of the 2018 market slump.

At Consensus Hong Kong, industry leaders pointed to memecoin speculation as the key factor behind the stagnation of BTC and the slowdown in the broader altcoin market. Market makers argued that the liquidity drain caused by memecoins stifled price movements.

Memecoins: A Clear Negative for the Market?

Market maker Wintermute's CEO Evgeny Gaevoy said at Consensus, "Crypto natives are exhausted due to the saturation of memecoin launches."

He mentioned that tokens like TRUMP associated with former US President Donald Trump and LIBRA supported by Argentine President Javier Milei are moving liquidity away from more established cryptocurrencies.

This effect was seen throughout the market:

• TRUMP's market value rose to $12 billion within 48 hours after its launch in January, but then dropped to $3 billion in February.
• LIBRA collapsed even faster and wiped out a $251 million investor fund.
• Chainalysis data showed that while early buyers made a profit, approximately 800,000 investors lost 2 billion dollars due to panic selling and price drops.

Fabio Frontini, the founder of Abraxas Capital Management, argued that meme coins should be banned, describing them as a clear wealth destroyer.

By the way, Auros Commercial Director Jason Atkins warned that memecoins reveal the fragility of the market and make institutional investors hesitant.

Atkins said, “Institutional players want a mature, stable market that can absorb large volumes without being disrupted by meme-driven speculation.”

BTC Price Outlook: Breakout or Collapse?

Some traders are worried that BTC's tight consolidation could lead to a collapse similar to 2018, when BTC stayed in the $6,000-6,400 range for weeks before falling.

However, Gaevoy believes that the current cycle is different and refers to regulatory winds that could revive the market.

Gaevoy says, “We have forgotten how restrictive the SEC and CFTC have been in recent years. This regulatory burden has been lifted, and I don’t think the market has fully priced it in yet.”