Smart money drives BONK, but memecoin risks persis

Smart money drives BONK, but memecoin risks persist

BONK’s 9% rally this week is being fueled by smart money flows. 

AMBCrypto flagged massive 4.1 trillion buy orders, showing a solid bid base that kicked in around the ETP launch. This is a sign that big players were positioning ahead of the move.

That said, the BONK launch follows Grayscale’s underwhelming Dogecoin ETF [GDOG] debut in the U.S. four days ago, where first-day trading hit $1.4 million vs. $12 million forecasts, with net inflows of only $2.16 million.

In other words, Grayscale’s GDOG launch fell short of expectations.

However, this isn’t a fluke. The memecoin frenzy from 2024 has clearly cooled. Tokens like Pepe [PEPE] (-83%), Floki [FLOKI]  (-85%), and dogwifhat [WIF] (-92%) are far below their previous peaks, while DOGE remains capped below resistance.

Against this backdrop, BONK’s ETP appears to be a high-risk trade.

Final Thoughts

• Bitcoin Capital has introduced a BONK ETP on the Swiss Exchange, bringing memecoins further into the mainstream after DOGE.
• But with BONK still trailing DOGE’s gains, can it really catch up