Meme coins experienced a significant drop in value this week as retail traders panicked amid declining prospects in the crypto market. The market cap of meme coins tracked by CoinGecko decreased by 12% to $113 billion. Smaller tokens saw the most pronounced sell-off, with Brett and Peanut the Squirrel falling by 11.2% and 40%, respectively. The crash of meme coins can be attributed to Bitcoin's performance, as the cryptocurrency fell below $100,000 due to profit-taking and concerns about inflation raised by the Federal Reserve. Meme coins tend to retreat more severely than Bitcoin because they are primarily held by retail investors. However, there is a possibility of a bounce back for Bitcoin and meme coins for several reasons. Firstly, Bitcoin is still in an uptrend, with a projected peak of around $122,000. Secondly, historical data suggests that Bitcoin and altcoins perform well in the first quarter of the year, with an average return of 56%. Lastly, financial assets often rebound after a major event and subsequent overreaction.



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