After Bitcoin broke the $90,000 mark last week, the market's focus immediately shifted to those more volatile meme coins. DOGE surged 12% within 24 hours and is now priced at $0.1421; PEPE followed closely with over a 10% increase, reaching $0.00000611. This phenomenon occurs every time, and behind it is actually the "leverage effect" of high Beta assets.
Simply put, high Beta refers to the multiple relationship of these crypto assets relative to the overall market. Mainstream meme coins generally have Beta values above 2, meaning that when the market rises by 1%, they can typically see a 2% or even higher increase. This is also why, whenever Bitcoin hits a new high, these assets tend to surge first—funds are pulled out of stable mainstream currencies and naturally poured into assets with faster returns.
Historical experience shows that meme coins love to perform like this at the beginning of a market rally. Once in an upward cycle, liquidity quickly flows into these highly volatile assets, making it a game of risk and reward. However, this double-edged sword means that the faster they rise, the harder they fall.
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RumbleValidator
· 01-03 03:55
The argument that the Beta value is above 2 is problematic. You need to look at specific historical data before drawing a conclusion; you can't just go by intuition.
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AirdropChaser
· 01-03 03:55
Here it comes again. Every time BTC hits a new high, DOGE starts bouncing around. I’ve memorized this routine backwards and forwards.
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PEPE looks fierce this time, but I’m still chicken. High Beta stuff really cuts both ways.
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Bitcoin steadily climbs up, while these meme coins seem to be on steroids. Everyone wants to jump in for quick money, right?
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A Beta value of 2 sounds tempting, but one correction and half of my principal is gone. Forget it.
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It’s always like this—bragging when it rises, crying when it falls. Meme coin traders can’t escape this cycle.
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DOGE is only 0.1421, feels like there’s still room, but I don’t dare to go all in. This thing is too risky.
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Got it. It’s just waiting for BTC to move, following the trend of meme coins, and a game of draining funds.
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WalletDetective
· 01-03 03:55
The performance of this wave of DOGE and PEPE is truly amazing. No wonder they are running so fast with such high beta values—these knives are just too sharp.
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BasementAlchemist
· 01-03 03:52
Here we go again. Every time BTC rises, people start chasing DOGE at a high price. How many people have lost out this time?
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VitalikFanAccount
· 01-03 03:43
Ah, here we go again. Every time BTC hits a new high, DOGE starts to bounce around. I'm already tired of it.
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High Beta, huh? Basically, it's a gambler's paradise. When it rises, it's exhilarating; when it falls, it's straight to the rooftop.
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So anyone still chasing PEPE now is betting on the next wave and the one after that. Truly exciting.
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Funds are pulled out of BTC and poured into meme coins. Isn't this just a fool's game? Everyone wants to be the last winner.
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Beta above 2? That's just a legal way of saying leverage. I see this as a clever wealth transfer game.
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Every time the market is in its early stages, meme coins have to put on a show. They can memorize this script by now.
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The double-edged sword is real, but usually, it's more about hurting oneself, right? Anyway, every time DOGE rises again, I think of those who got cut earlier.
After Bitcoin broke the $90,000 mark last week, the market's focus immediately shifted to those more volatile meme coins. DOGE surged 12% within 24 hours and is now priced at $0.1421; PEPE followed closely with over a 10% increase, reaching $0.00000611. This phenomenon occurs every time, and behind it is actually the "leverage effect" of high Beta assets.
Simply put, high Beta refers to the multiple relationship of these crypto assets relative to the overall market. Mainstream meme coins generally have Beta values above 2, meaning that when the market rises by 1%, they can typically see a 2% or even higher increase. This is also why, whenever Bitcoin hits a new high, these assets tend to surge first—funds are pulled out of stable mainstream currencies and naturally poured into assets with faster returns.
Historical experience shows that meme coins love to perform like this at the beginning of a market rally. Once in an upward cycle, liquidity quickly flows into these highly volatile assets, making it a game of risk and reward. However, this double-edged sword means that the faster they rise, the harder they fall.