As Bitcoin Slumps, Meme Coins Face Heavy Sell-Off. Where Is the Catalyst for a Rebound?

▲ Meme coin market downturn / ChatGPT-generated image ©

The extreme fear gripping the cryptocurrency market has dealt a direct blow to the meme coin ecosystem, one of the most high-risk asset classes. As leading coins including Bitcoin (BTC) continue to fall in succession, investor sentiment across the market has frozen, leaving meme coins—highly dependent on liquidity and sentiment—facing intense selling pressure.

According to CoinMarketCap data as of the morning of the 24th, the total market capitalization of meme coins stood at $30.74 billion, down 1.55% from 24 hours earlier. While market capitalization declined, trading volume surged 61.93% over the same period to $3.15 billion. This suggests that panic selling and short-term profit-taking are occurring aggressively amid extreme market volatility.

Dogecoin (DOGE), the leading meme coin, was trading at $0.09340, down 2.18% from 24 hours earlier, remaining under pressure. Shiba Inu (SHIB), which follows behind, also fell 2.12% to $0.000006051, while most major meme coins including Pepe (PEPE), Pudgy Penguins (PENGU), and Floki (FLOKI) were also in the red.

The synchronized decline of meme coins is attributed to the broader macroeconomic fear weighing on the entire digital asset market. The Crypto Fear & Greed Index currently stands at 14, signaling extreme fear, while the total crypto market capitalization has shrunk by 3.51%. Even Bitcoin, which should serve as a sturdy support, dropped 3.96% to $64,848, accelerating capital flight from highly speculative meme coins as investors seek to reduce risk.

However, despite the overall downturn, some coins are bucking the trend on the back of strong community-driven buzz. Pippin (PIPPIN) soared 19.38% over the past 24 hours to $0.7307, drawing market attention, while Memecore (M) rose 4.28%, showcasing relative resilience. This demonstrates that the meme coin market’s characteristic localized capital concentration remains active regardless of broader market conditions.

The outlook for the meme coin market is expected to move in tandem with whether Bitcoin can secure key support levels. Unless investor sentiment recovers, further price adjustments in liquidity-thin meme coins appear inevitable. Analysts predict that until broader macroeconomic uncertainties ease and the overall fear index declines, the meme coin ecosystem will continue to experience severe volatility and a sharp differentiation between winners and losers.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses resulting from it. The content should be interpreted for informational purposes only.*