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Bonk price has been in a spectacular rally in the past few weeks, making it one of the biggest cryptocurrencies in the world. It has surged by more than 7,600% from its all-time low, pushing its total market cap to over $880 million.
Why is Bonk soaring?
Bonk, a meme coin in Solana’s ecosystem. It was launched in December 2022 as an alternative to other popular tokens like Shiba Inu and Dogelon Mars. Today, the token has become extremely popular with the number of holders approaching 650k.
There are three main reasons why BONK token is soaring. First, the token is taking part in the ‘everything rally’ that was triggered by the Federal Reserve. The bank has signaled that it will start cutting interest rates in 2024.
As a result, all risky assets have jumped, with the Dow Jones soaring to an all-time high. The Nasdaq 100 and Russell 2000 indices have also soared. At the same time, Treasuries have rallied while the VIX and DXY indices have plunged.
Second, Bonk has rallied because of the strong performance of Solana’s ecosystem. Solana., which tumbled after the FTX collapse, has become one of the best-performing major coins this year.
Other parts of its ecosystem have also risen, with the total NFT sales in December hitting over $114 million. Orca has also grown into one of the biggest decentralised exchanges (DEX) in the world.
Further, Bonk price has soared because of Fear of Missing Out (FOMO). This happens when traders buy an asset that is going upwards. We sae this during the crypto rally in 2021 when all coins were soaring. This also explains why other coins like ORDI, Gorilla, and Fetch AI are soaring.
How high can BONK price go?
Therefore, the question is on how high can BONK price move to. I suspect that this FOMO mode will continue for a while, especially now that the Federal Reserve has changed its tune on interest rates.
There are other possible catalysts that will likely move Bitcoin and BONK. For example, there are high chances that the SEC will approve ETF proposals by companies like Blackrock, Franklin Templeton, and Fidelity. These are highly experienced companies that own hundreds of ETFs. Additionally, Bitcoin halvingis set to happen in April next year as the Fed starts to cut rates. These three catalysts could help to push Bonk and other coins higher.
Therefore, in the near term, I suspect that the coin will rise to $0.000020, which is about 38% above the current level. In the long term, I suspect that Bonk price will double to $0.000028.
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