Memecoins plunged 18% in the past day amid a broader crypto sell-off. Despite investor caution over market uncertainties, digital asset volatility persists, resulting in widespread losses.
Key memecoins saw significant outflows, with losses reaching up to 17%, dampening monthly gains. However, anticipation for Bitcoin’s supply halving offers a ray of hope for some users.
Memecoin Market Sees Significant Losses Amidst Daily Corrections
In the last 24 hours, Dogecoin (DOGE), the leading memecoin, faced a notable decline of 14.5%, marking a weekly outflow of 11.2%. These daily corrections have pushed the asset’s monthly movements into negative territory, erasing any previous gains.
Shiba Inu (SHIB), with a daily volume of $1.2 billion, saw a 3.1% decrease from the previous day’s 14.9%, resulting in total weekly losses nearing 15%. Similarly, PEPE and Dogwifhat experienced losses of 23% within the same timeframe, with PEPE’s monthly liquidations reaching a staggering 46.1%.
This trend denotes a bearish sentiment in the market compared to the memecoin fervor witnessed in the first quarter of 2024. Memecoin’s daily trading volumes have dwindled due to its lackluster performance, with the cryptocurrency’s market value currently standing at $51.8 billion.
Despite the widespread losses, certain assets have bucked the trend, boasting gains of over 50% today. Catino led the gainers with a remarkable rise of 116%, while FLIES and Let’s Go Brandon also saw surges of 61% and 48%, respectively.
Geopolitical Tensions and Tax Deadlines Impact Crypto Markets
The cryptocurrency market witnessed an outflow of 8.5% as Bitcoin plummeted to $62,000 amid concerns over potential conflict between Iran and Israel. These geopolitical tensions prompted investors to pull back from assets deemed risky. Additionally, looming tax deadlines in the United States added to the downward pressure on the market.
As tax deadlines approach, investors are grappling with the prospect of settling their capital gains taxes from the previous year’s bull market. Historically, the weeks leading up to tax deadlines have been characterized by a downturn in the market. This trend is attributed to investors liquidating assets to cover their tax liabilities.
Both stocks and cryptocurrencies experienced significant inflows in the previous year, driving asset prices to multi-month highs. However, as investors now face tax obligations on their gains, they are selling off assets, contributing to the recent market declines.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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