Is the Meme Coin Frenzy Over SHIB PEPE Experience a Decline in the Crypto Market
Key Points
– The cryptocurrency market has seen a significant drop, led by Bitcoin.
– Meme coins like Shiba Inu and Pepe have experienced a substantial decrease in value.
– Some investors are cautious about Bitcoin’s weakness, while others are considering buying in anticipation of a market recovery.
The crypto market has taken a hit in the last 24 hours, particularly due to a decline in Bitcoin (BTC). The leading cryptocurrency briefly fell below $60,000 before stabilizing around $61,000 during the early European session on Tuesday. This sharp drop led to over $300 million in total liquidations, mainly affecting long traders.
The total market capitalization has seen a decrease, with meme coins suffering a significant drop from nearly $70 billion to around $47 billion. This heightened speculation in the crypto market has raised concerns about potential further corrections in the coming weeks.
Shiba Inu (SHIB), which is based on Ethereum, has dropped by 30% over the last four weeks, trading at around $0.0000173 as of Tuesday. Similarly, Pepe (PEPE), with a fully diluted valuation of about $4.88 billion and an average daily trading volume of approximately $939 million, has shed more than 22% in the past four weeks, trading at about $0.00001161.
As Bitcoin’s price indicates further corrections, some crypto traders are opting to stay on the sidelines. On-chain data shows that a Shiba Inu whale address, which accumulated coins between November and December last year, has deposited its holdings worth around $18.12 million into Binance. Another whale has deposited 700 billion PEPE, valued at over $7.8 million, into Binance and currently holds around 800 billion PEPE.
Despite the market downturn, popular crypto analyst Ali Martinez forecasts a strong rebound in the coming days. There is a growing sentiment among investors to buy the dip, expecting a market recovery in the near future.
In conclusion, the cryptocurrency market has experienced a significant decline, with meme coins being particularly affected. While some investors are cautious, others are seeing this as a potential buying opportunity.