From Cheers To Tears: Beercoin (BEER) Dries Up, Loses 70% Of Its Value

Christian Encila

1 year ago

3 mins read

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The effervescent Solana-based meme coin, Beercoin, which promised a taste of financial independence, is suffering a massive hangover. Beercoin fell around 70% in a few days following a stratospheric increase in price earlier this month. This sharp drop results from a convergence of elements including a hawkish Federal Reserve posture, a larger crypto market correction, and an alarming trend of insider sales.

Fed Tightens The Taps

The whole bitcoin market is under gloom since the Federal Reserve decided to implement a more hawkish monetary policy, giving inflation control top priority over economic growth. The industry’s benchmark, Bitcoin sank below $66,000 this week, pushing most altcoins down with value.

Highly speculative assets like meme coins, which depend on easy money and investor excitement, suffer especially from this change in central bank policy. Often lacking real-world value or accepted principles, meme coins are thought to be dumped first when risk aversion enters the market.

Whales Jump Ship

Insider selling in Beercoin is a concerning pattern that fuels its slide. LookOnChain’s onchain study showed that multiple people with huge holdings, most likely early investors who bought Beercoin at a discount during pre-sales, have lately cashed out in great numbers.

Another wallet related to the #beercoin team sold 5.43B $BEER for $1.13M!

Although it has been transferred many times, we traced that the wallet received $BEER directly from the #beercoin team wallet “7yfvQX…o9v394” and “8VY4LF…fDd5G2”.https://t.co/vElDToYi5C pic.twitter.com/oYp41d3Naz

— Lookonchain (@lookonchain) June 16, 2024

For retail investors, this huge evacuation by insiders—who presumably have a better knowledge of Beercoin’s potential or constraints—raises major concerns. Their behaviour can be seen as a loss of faith in the project, maybe indicating that Beercoin might not be the golden ticket to riches it was first promised to be.

Technical Indicators: Frothy Future

For Beercoin, technical analysis—the study of price charts and past data to forecast future market movements—painted a similarly negative picture. Not only has the token dropped below a key support level, but it also keeps trading below important moving averages, technical indicators used to measure momentum and point up possible trend reversals.

BEERUSDT trading at $0.000106 on the daily chart: TradingView.com

BEER Price Prediction

The present BEER price estimate, meantime, points to a notable increasing trend, projecting a 220% rise to $0.0₁₀5119 by July 18, 2024. Technical indicators reveal a bearish attitude, suggesting possible caution among investors even with this positive prediction.

At 74, the Fear & Greed Index indicates high market levels of greed and suggests that overactive mood rather than strong fundamentals may be driving the present optimistic view.

BEER has seen an odd trend over the previous thirty days: 100% green days with zero price volatility—an outlier in ordinary market behaviour. This constant upward movement free from volatility could point to a very manipulative or illiquid market.

Featured image from Health | HowStuffWorks, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.