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Bitcoin (BTC) Price Regains Momentum as MemeCoin Gains Traction

Bitcoin (BTC) Price Regains Momentum as MemeCoin Gains Traction

Bitcoin (BTC) enthusiasts gradually recover lost ground, targeting a $30,000 comeback as the U.S. banking crisis persists. At the time of writing, Bitcoin (BTC) is trading at $29,179 according to CoinMarketCap data

On May 5, Bitcoin (BTC) aimed to regain more of its lost ground as $30,000 remained within reach. BTC/USD saw a rebound after a brief slump with U.S. equities on Wall Street the previous day, with support at $29,000 restored.

The ongoing U.S. banking crisis, which now affects several regional banks, continues to influence market sentiment. 

Market in favor of Bitcoin (BTC)

According to the Crypto media outlet Whalewire, all regional banks in the United States saw their stocks in the red for the first time ever. This occurred a day after Federal Reserve Chair Jerome Powell claimed the U.S. banking system was stronger than ever.

Meanwhile, a financial commentary source, Kobeissi Letter, discussed the possibility of the crisis’s effects spreading further. 

It noted that this was the first day since March that markets were taking the banking crisis seriously, as both stocks and crypto dipped.

As the market seeks new direction, Popular Trader Alan expressed optimism that upside continuation is in the offing.

Memecoin Partly Gains Traction

Although the tacit return of memecoin has aided a spike in Bitcoin (BTC) transaction fees, it remains far from all-time high levels. 

On May 3, the total Bitcoin blockchain fees reached $3.5 million, up 400% from late April. The average Bitcoin (BTC) transaction fee rose to $7.2.

The trading frenzy of meme coins like Pepe Coin (PEPE) has unintentionally driven Bitcoin (BTC) transaction costs to multi-year highs. According to Galaxy Research, 50% of all Bitcoin transactions on May 2 were related to BRC-20 transactions.

In the same vein, the Ethereum blockchain has also seen skyrocketing gas fees due to the ongoing memecoin hype. 

Ethereum remains the most expensive network in terms of transaction fees and it is currently trading at $1,900 according to CoinMarketCap data.

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