Memecoins are currently among the best performing assets in the crypto market in the weekly charts. According to CoinGecko data, Pepe (PEPE) has rallied 73.5% in the last week, Bonk (BONK) has risen by 66.1%, and Shiba Inu (SHIB) has surged 32.3% in the same time frame. Let’s discuss why memecoins are surging, and if we are entering a meme cycle right now.

Is The Crypto Market Entering A Memecoin Season?

The memecoin rally comes amid a larger cryptocurrency market rally. Bitcoin (BTC) has climbed to the $93,000 price level after months of struggle, and is inching closer to reclaiming $94,000. The global crypto market cap has also risen 2.1% in the last 24 hours to $3.3 trillion.

There have been several bullish developments that may have propelled the cryptocurrency market. The Bank of America recently allowed its advisors to recommend crypto assets for their clients. Meanwhile, the Japanese Finance Minister Satsuki Katayama showered support for cryptocurrency assets to be integrated into traditional markets. Moreover, investors may be anticipating more economic stability after the US seized Venezuelan oil reserves after a military strike.

Despite the bullish developments, the surge of altcoins and memecoins could be a signal that the cryptocurrency market has bottomed. The market could move in either direction from here. The crypto sector is still recovering from its losses over the last few months. The memecoin surge could see a correction as investors book profits. Market participants are still keeping away from risky assets, and memecoins could see liquidations over the coming weeks.

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However, if Bitcoin (BTC) maintains its upward momentum, the market-wide rally could continue. Cryptocurrencies are plagued by violent swings, and prices could pivot at any moment. Macroeconomic uncertainties may also introduce fresh volatility in the coming days.