VIX index has slumped: Time to buy Memeinator?

November 25, 2023 01:15 AM PST | By Invezz
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The CBOE Volatility Index (VIX) has been a major underperformer this year. It ended the week at $12.45, the lowest point since January 2020. A closer look shows that it has slumped by over 85% from its pandemic highs. 

Volatility eases as risk assets rise

The VIX index has crashed at the same time that other risk-focused assets have bounced back. For example, cryptocurrency prices have rocketed higher, with Bitcoin testing the $38,000 resistance for the first time since April 2022. The total market cap of all digital coins has soared to over $1.49 trillion, according to data compiled by CoinGecko.

Meanwhile, American equities have also thrived. The tech-heavy Nasdaq 100 index has bounced back to $16,000, which is higher than October’s low of $14,000. It is now hovering near the highest point since January 2022. This rally has been helped by technology giants like Nvidia, Meta Platforms, and Microsoft.

The S&P 500 index and Dow Jones have also roared back as investors have embraced a risk-on sentiment. At the same time, the US dollar index (DXY) is showing signs of peaking after it dropped for two straight weeks. It was trading at $103.41, much lower than last month’s high of $107.35.

This price action is mostly because of the improving inflation issue in the United States. The most recent data showed that the headline Consumer Price Index (CPI) dropped to 3.2% in October while core CPI fell to 4.0%. 

There are signs that inflation continued moving downwards in November. Besides, mortgage rates have slumped while the price of crude oil has retreated. Brent has slumped to $80 while the West Texas Intermediate (WTI) has moved to $75. 

Therefore, there is a likelihood that the Federal Reserve will maintain interest rates at the current level of 5.25% and 5.50%. It will then cut rates, possibly in the second or third quarters of 2024.

Memeinator is thriving

Cryptocurrencies rose after an eventful week in which Binance agreed to pay billions of dollars to American regulators. Changpeng Zhao, the company’s founder, CEO, and majority owner also paid over $50 million and stepped down.

I believe the settlement was a good thing for Binance, the biggest crypto exchange in the world with over 11 million customers. For one, it removes the cloud that has been hovering in the crypto industry in the past few years.

This explains why cryptocurrency prices bounced back this week, with Bitcoin hovering near its highest point in more than a year. It also explains why Memeinator has continued attracting investors.

Memeinator, an upcoming meme coin with artificial intelligence (AI) features, has raised over $1.49 million from investors. It has raised these funds in the past few months and there is a likelihood that the trend will continue.

For starters, Memeinator is a token that is gaining traction as it seeks to dethrone other popular meme coins like Shiba Inu, Dogecoin, and Floki Inu. It aims to achieve that by creating an active global community of members. It is already achieving this as over 339k people have participated in its competition.MMTR token price will likely continue doing well in the coming months now that the VIX index has crashed. It will also do well as Bitcoin nears the important resistance at $40,000. You can buy the MMTR token here.

The post VIX index has slumped: Time to buy Memeinator? appeared first on Invezz


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