In recent days, Bitcoin has faced a notable downturn, largely influenced by a confluence of factors including a cooling demand for US exchange-traded funds and shifting perceptions surrounding Federal Reserve monetary policy. This resulted in a sharp decline of up to 5.3% in Bitcoin’s value, ultimately stabilizing around $66,735 during trading hours in Singapore.
Alongside Bitcoin’s retreat, tokens popular among meme enthusiasts, notably Pepe and Dogwifhat, also experienced substantial drops in value. This collective decline has triggered concerns within the cryptocurrency market, indicating a broader trend of weakness exacerbated by ongoing economic pressures in the United States and a recalibration of investor sentiment regarding potential Federal Reserve interest-rate adjustments.
Impact on Meme Coins
The decline in Bitcoin’s value has had a significant impact on meme coins, including Pepe Coin and Dogwifhat, both of which have witnessed notable decreases in their prices. Pepe Coin, in particular, suffered a substantial drop of 12.07% within the past 24 hours and is currently trading at $0.0000072968, reflecting the broader market sentiment.
Similarly, Dogwifhat, which recently surged to become the third most valuable memecoin with a market capitalization of $4.4 billion, experienced a decline after reaching an all-time high of $4.85. These downturns indicate a potential end to the rally in meme coins, as investor enthusiasm wanes amidst broader market uncertainties and the significant decline in Bitcoin’s value.
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Bitcoin’s Supply Dynamics and Market Performance
Despite expectations of a positive impact stemming from the halving of new Bitcoin tokens this month, a cyclical event perceived by some traders as supportive of the cryptocurrency. Bitcoin’s recent performance has been mixed. Since reaching a peak of $73,798 in mid-March, Bitcoin has encountered challenges, shedding about 10% of its value. This decline has coincided with a slowdown in daily inflows into US spot-Bitcoin ETFs, signaling a shift in investor sentiment.
Presently, the live price of Bitcoin stands at $66,524, with a 24-hour trading volume of $32 Billion, marking a decline of 4.39% within the past day. Market analysts hold differing perspectives on Bitcoin’s future trajectory, with some anticipating further gains driven by the impending halving event, while others express caution due to the cryptocurrency’s significant price appreciation since early 2023 and the prevailing market uncertainties.
Also Read: Bitcoin ETF Flows Turn Negative As Q2 Begins, Halving Excitement Ends?
