This week, Bitcoin faced a steep decline as memecoin prices tumbled alongside. Bitcoin (BTC) dropped almost 10% falling to a two-month low just over $26,000. The crypto was sitting at a high around the $28,400 mark when Wednesday's softer than expected CPI data was released. Despite the fall, Laurent Kssis, a crypto advisor at CEC Capital, believes the selloff could be temporary and that Bitcoin might break below $26,000 over the weekend.

Ether (ETH) followed a similar pattern, though it outperformed BTC, trading around the $1,770 level, compared to the weekly high of $2,020 seen Saturday.

The memecoin sector was hit hard this week, particularly pepecoin (PEPE), which dropped a staggering 60% from the valuation of more than a$1 billion seen when it debuted in April. Other memecoins didn't fare much better, DOGE and SHIB lost 11% each in the past 7 days.

Youwei Yang, the chief economist at BTCM, blamed the market crash on the waning of 'fear of missing out' (FOMO) sentiment. Altcoins also took a hit, Aptos, Filecoin and Aribtrum declining respectively by 20%, 17% and 17%.

Overall, Bitcoin's plunge could be attributed to lack of regulatory clarity in the US and the plunge in the memecoin sector. Analysts believe that the current soft spell in the market could be temporary, and Bitcoin could rebound in the coming days.



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