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The Lab
Ideas traders use, put to the record · updated 30 Oct 2026 22:01 UTC
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#11 Memes behind Bitcoin Real, but small
The idea
Meme coins follow Bitcoin, but late: their traders react after the big money has moved, so Bitcoin's last hour shows where the meme coins go in the next.
Why test it
Bitcoin leads the market, and meme coins are traded mostly by smaller, slower traders. If news reaches them with a delay, a rise in Bitcoin should carry over into the meme coins an hour later.
What we tested
Every hour, for each meme coin (DOGE, PEPE, TRUMP, FARTCOIN, USELESS, PENGU, WIF, SHIB and BOME): Bitcoin's price change over the hour just ended. Against: the meme coin's change over the next hour. Data: Binance's archive, hourly, since 2022 (each meme coin from its listing); 9 coins, 230,390 coin-hours.
Record tested: 01 Jan 2022 – 30 Oct 2026 · first run: 13 Oct 2026 · numbers as of: 30 Oct 2026 03:22 UTC, updated every hour.
What we found
Real, but small. It holds up, the opposite of the idea, but it is too small to pay a trade's costs. After the hours when Bitcoin rose most, the next hour went 3.3 bps worse than after the hours when Bitcoin fell most: $3 on every $10,000.
Every hour of every coin sorted into five equal groups by the signal, low to high, and the average move over the next hour after each group, in basis points (0.01%) above or below the average move. If the idea were right, the bars would climb from left to right.
How sure
- ✓ More than chance. t -5.7; we ask for beyond ±3, not the usual ±2, because coins move together and the moves overlap.
- ✓ The same in most coins. 8 of 9 coins point the same way; we ask for 70%.
- ✓ The same every year. 5 of 5 years point the same way.
- ✓ Not just the price bouncing back. With the last 24 hours' price move taken out, the correlation is -0.027 (t -5.5), against -0.030 before; it must stay beyond ±3.
- … Holds on new data. Waiting: 16 of the 90 days it needs. Only the record from 14 Oct 2026 on counts here, because the settings were fixed before it existed. So far: -0.047 (t -3.7).
- ✗ Big enough to pay its costs. The highest fifth against the lowest: -3.3 bps, against about 10 bps for a round trip at typical fees.
What could still be wrong
Nine coins is few, and they move together, so the tests are weaker than their count. Most of these coins are young, so the record is short for some. A lag this short is quickly traded away if it was ever there. The settings were fixed on 13 Oct 2026, before any of its numbers were seen.
All the numbers
By year · mean rank correlation
| -0.052 2022 | -0.054 2023 | -0.057 2024 | -0.022 2025 | -0.016 2026 |
Other settings · mean rank correlation
| next hour | next 4 hours | next 24 hours | |
|---|---|---|---|
| mean rank corr. | -0.030 t -5.7 | -0.017 t -5.0 | -0.010 t -5.2 |
The test above is the next hour; these are the other horizons. With several tries one will look good by luck, so all are shown.
By coin · rank correlation
Update, 27 October 2026: where the idea comes from
Added after this page was published. The study above is left as it was.
- Big leads small. Andrew Lo and Craig MacKinlay found in 1990 that large stocks' moves showed up in small stocks' later. Here Bitcoin is the large one.
- For example: Bitcoin rises 1% in an hour. If the meme coins carried part of that into the next hour, they would rise then too.
- The catch: crypto prices update in seconds, and automated traders watch Bitcoin. A lag of a whole hour would be hard to keep.
- Theirs and ours. The lead of big over small is theirs. The meme coins chosen and the test are ours.
Credits
- Andrew W. Lo and A. Craig MacKinlay, "When Are Contrarian Profits Due to Stock Market Overreaction?", Review of Financial Studies, 1990: big stocks leading small ones.
- Charles Spearman, "The Proof and Measurement of Association between Two Things", American Journal of Psychology, 1904: the rank correlation.
- "Student" (William Sealy Gosset), "The Probable Error of a Mean", Biometrika, 1908: the t-statistic.
- G. Udny Yule, "On the Theory of Correlation", Journal of the Royal Statistical Society, 1897: partial correlation, behind "not just the price bouncing back".
- The rule, its settings and the record are our own; the data as named above.
- PerpGremlin and Claude, Memes behind Bitcoin, TerminalGremlin, 2026: the tests, the code and the words.
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How to read a study: the maths, step by step
1. Basis points (bps). A hundredth of a percent: 100 bps is 1%. 10 bps on $10,000 is $10. Buying and selling once (a round trip) at typical fees costs about 10 bps, so an effect smaller than that loses money.
2. The five groups (fifths). Take every hour of every coin and sort them by the signal, lowest to highest. Cut the pile into five equal groups. For each group, average the price move that followed. Each bar shows its group's move above or below the average of all hours, so a market that simply rose all month doesn't count. If the idea is right, the bars climb (or fall) steadily from one end to the other.
3. Rank correlation (Spearman's). One number for "when the signal is higher, is the move after higher too?" Put the hours in order by the signal (1st, 2nd, 3rd…), and again by the move that followed, then compare the two orders. Five hours in exactly the same order in both give +1; exactly reversed, −1; no pattern, about 0. Markets are noisy, so real effects are tiny: 0.03 held for years is notable. We work it out for each coin, then take the average over the coins.
4. t: more than luck? Even with no real link, an average comes out a little above or below zero by chance. How much it usually wobbles (the standard error) can be worked out from how much the coins disagree with each other. t is the average divided by that wobble. For example, an average of 0.02 with a usual wobble of 0.005 gives t = 4: four times what luck usually makes. Luck alone passes ±2 about 1 time in 20, and ±3 only a few times in 1,000. We ask for ±3, because coins move together and neighbouring hours overlap, which makes luck look surer than it is.
5. "The price bouncing back" taken out. Some signals mostly echo the price's last move: a fall, then a bounce. We remove what that last move already explains and check that what is left still lines up with the move after, with t still beyond ±3.
6. Many settings tried. Try twenty settings and one will look good by luck, so every setting tried is shown under "All the numbers", not only the best.
7. Old data and new data. The settings tested (distances, horizons, thresholds) were set on 12 Oct 2026, after a first look at the numbers (a study added later gives its own dates). The record from 13 Oct 2026 on was unseen when they were chosen, so it is the fair test: each study judges it apart, as "holds on new data", once there is enough of it.
The verdicts. Holds up: every test passed. Real, but small: every test passed but one: the effect is too small to pay for a trade's costs. Partly: more than chance, but some tests failed. A hint: t beyond ±2 but not ±3: perhaps something, perhaps luck. No sign: nothing the record can tell from chance. Too early: under 2 weeks of record. No reliable edge: a write-up's word: what looked good did not hold up against chance or on unseen data. No edge after fees: a write-up's word: there is something, but trading costs eat it. Not shown: a write-up's word: the record could not show that the idea helps. Passed, on a weak bar: a write-up's word: it cleared the bar set in advance, but the bar proved easy; the stricter reading, added after, is shown apart. No reliable gain: a write-up's word: the versions that looked better did not clear the bar set in advance: all three coins, at both a day and a week. Failed on fresh data: a write-up's word: a lead from one study, tested again on prices kept apart, did not hold. Not proven, a lead: a write-up's word: it failed the test set in advance, but pointed the same way throughout; worth a fresh test. Holds, with the coins paid for: a write-up's word: it held up through every test, but only as set out: the coins bought outright, nothing borrowed. Not confirmed; the lead holds: a write-up's word: on fresh data it fell just short of the bar set in advance, but still pointed the same way.
13 Oct 2026 · Memes behind Bitcoin added: does Bitcoin's last hour lead the meme coins' next? On the nine meme coins, apart from the Lab's fixed list. Its settings were fixed before any of its numbers were seen.
21 Oct 2026 · Correction: Binance's readings of 15 Oct 2026, 11:00 to 14:55 UTC, were wrong (frozen, halved or zero on every coin, in Binance's own archive too). They are now left out as missing, and the nine studies from the years were worked out again. No verdict changed. Some figures moved slightly, the most: #5's gap from 19.4 to 19.1 bps; #9 from 28 to 27 of 32 coins pointing the same way (the bar is 70%); #4's gap from +0.1 bps to about none. The "so far" figures on the new record moved more, as 15 Oct is one of its eight days.
Historical data: Binance Vision (data.binance.vision), used under CC BY-NC-SA 4.0 (creativecommons.org/licenses/by-nc-sa/4.0); what is drawn from it here is shared under the same licence.
Educational research from public market data; any trading discussed is paper, never real. Nothing here is advice. The full notice.