Updated On: Friday, 16 August 2024, 04:28 PM GMT:
The cryptocurrency market is experiencing a downturn today, and memecoins are no exception. As Bitcoin (BTC) fell by 2.06% in the past 24 hours, trading at $58,460, the global crypto market cap also declined by 2.91% to $2.05 trillion. This overall bearish sentiment has affected several popular memecoins.
Here’s a look at the recent performance of some trending memecoins over the past 24 hours:
- BRETT: Down by 8.41%
- POPCAT: Down by 2.43%
- MOG: Down by 15.22%
The total market cap of memecoins has dropped by 6.2% in the last 24 hours, now sitting at $38 billion, according to CoinGecko.
Here’s a closer look at the reasons behind this decline:
The recent decline in memecoin prices can be attributed to a few key factors, as outlined by the popular crypto channel Crypto Banter on X (formerly Twitter). Here’s what’s driving the downturn:
1) Fed’s Uncertainty on Rate Cuts: The Federal Reserve is holding off on cutting interest rates as they await more economic data. While inflation is showing signs of cooling, the uncertainty surrounding the Fed’s next move is causing unease in the market.
2) Bitcoin Options Expiry: A significant $1.4 billion in Bitcoin options is set to expire soon, with BTC prices hovering around a critical support level. This situation is adding pressure to the market, leading to increased volatility.
3) Rising Mining Costs: The International Monetary Fund (IMF) has suggested an 85% increase in electricity costs for crypto miners as a measure to curb emissions. This has raised concerns about the future of crypto mining, particularly for Bitcoin, and is causing ripples across the entire cryptocurrency market.
These factors combined have contributed to the sharp decline in the value of popular memecoins like BRETT, POPCAT, and MOG. As the market reacts to these developments, investors are bracing for potential further volatility.