COINTURK NEWS – Bitcoin, Blockchain and Cryptocurrency News and Analysis

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The cryptocurrency landscape, dominated by Bitcoin (BTC) $0.000031 and altcoins, is currently experiencing volatility. Despite increases in global liquidity and slight improvements in inflation data, meme coin projects have suffered significant losses. Since December 2024, the market has been in a consolidation phase, further complicated by signals from Federal Reserve Chair Jerome Powell indicating no changes to interest rates, along with the Trump administration’s aggressive tariff policies adding to market uncertainty.

Global Liquidity Increases but Market Impact Remains Limited

Recent data suggests an increase in global liquidity, driven by the weakening of the US dollar. The combined money supply from 28 central banks is affecting Bitcoin prices, indicating a theoretically positive development. However, prevailing uncertainties in the market dampen the strength of this effect.

Bitcoin

The latest inflation figures released in the US, while slightly better than expected, failed to alleviate market concerns. The rapid implementation of tariffs by the Trump administration is exacerbating inflationary pressures. As markets eagerly await the Fed’s potential interest rate cuts, this uncertainty continues to suppress the prices of Bitcoin and altcoins, leading investors to maintain a cautious risk appetite.

Significant Value Loss in Meme Coins

Meme coins, once a strong narrative during the last bull season, have faced substantial value losses in recent months. Projects within the Solana $129 (SOL) ecosystem, in particular, have been severely impacted, with Raydium (RAY) dropping 71% in the past three months and Solana itself losing 37% of its value.

Decentralized exchanges (DEX) focused on meme coins, like Pump.fun, saw considerable interest during this period. The platform became popular for rapid coin creation and trading activities. However, following the drop from the meme coin market’s peak in January, trading volumes have sharply decreased. Despite generating $582 million in revenue over the last year, Pump.fun has experienced a significant slowdown in revenue growth in recent weeks.

The weak momentum in the altcoin market and the bursting of the meme coin bubble have led to a notable decline in the total market value of cryptocurrencies. The market capitalization, which reached $3.6 trillion in December, has now fallen to $2.6 trillion as of March. As investors reassess their risks, even better-than-expected inflation figures have not been enough to spur recovery. The future direction of the market will depend heavily on the Fed’s policies and macroeconomic developments.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.



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