CoinInsight360.com logo CoinInsight360.com logo
A company that is changing the way the world mines bitcoin

WallStreet Forex Robot 3.0
crypto.news 2024-12-19 17:04:58

Meme coins crash: why are Brett, PNUT, Popcat falling?

Most meme coins plunged this week as many retail traders continued to sell in panic as the outlook in crypto worsened. The market cap of all meme coins tracked by CoinGecko was down by 12% to $113 billion on Dec. 13. While most meme coins plunged, the sell-off was more pronounced among smaller tokens. Brett ( BRETT ), the biggest meme coin in the Base Blockchain, fell by 11.2% on Thursday and by 23% in the last seven days. Peanut the Squirrel ( PNUT ), a Solana meme coin that went viral recently, has plunged by 40% in the last seven days. Similarly, Popcat ( POPCAT ), Turbo, and Mog Coin were among the worst-performing cryptocurrencies. The market cap of all Solana meme coins dropped by 15% to $15.5 billion. Meme coins have crashed because of the ongoing performance of Bitcoin. After soaring to a record high of $108,200, Bitcoin fell below $100,000, as we predicted earlier this week. Bitcoin has dropped because of profit-taking and the jitters surrounding the hawkish Federal Reserve. In its last meeting of the year, the bank warned that it will deliver just two cuts in 2024 as it expressed concerns about inflation. You might also like: 2 reasons why Bitcoin and other crypto just crashed Meme coins crashed after Bitcoin fell Meme coins always drop when Bitcoin slips. Their retreat is usually more severe because most of them are held by retail investors riding the bullish wave. This is unlike Bitcoin, which has huge institutional investors like MicroStrategy, Marathon Digital, and Tesla. Bitcoin ETFs also have over $115 billion in assets. Historically, institutional investors have a longer investment horizon than retail traders. A good example of this selling is in on-chain metrics. According to Nansen, the number of smart money investors in Peanut the Squirrel has dropped to just 35 from last month’s high of almost 100. Peanut the Squirrel smart money movements | Source: Nansen The same trend is happening in Brett, where the number of smart money holders and their balances have dropped in the past few weeks. Brett has about 40 smart money holders, while their balances have fallen to their lowest level in months. Brett token smart money investors | Source: Nansen Will meme coins rebound There is a likelihood that Bitcoins and these meme coins will bounce back for three reasons. First, Bitcoin is still in an uptrend, with this retreat being a breather. Technicals suggest that Bitcoin price will peak at around $122,000 in this bullish cycle. It is not uncommon for Bitcoin to retreat after hitting a key resistance. For example, it went through a prolonged consolidation when it rose to an all-time high in March. Second, historically Bitcoin – and altcoins – do well during the first quarter of the year. Data by CoinGlass shows that the average Bitcoin return in the first quarter is 56%. This makes it the second-best quarter after the fourth quarter, meaning that there are odds that they will bounce back in Q1. Bitcoin performance by quarter: Source: CoinGlass Third, financial assets often overreact when there is a major event and then moderate as traders adjust to the new normal. A good example of this was in March 2020, when stocks and crypto plunged after COVID was declared an emergency. They then bounced back and reached an all-time high. You might also like: Ethereum price crashes to key support as ETH ETF inflows surge

Leggi la dichiarazione di non responsabilità : Tutti i contenuti forniti nel nostro sito Web, i siti con collegamento ipertestuale, le applicazioni associate, i forum, i blog, gli account dei social media e altre piattaforme ("Sito") sono solo per le vostre informazioni generali, procurati da fonti di terze parti. Non rilasciamo alcuna garanzia di alcun tipo in relazione al nostro contenuto, incluso ma non limitato a accuratezza e aggiornamento. Nessuna parte del contenuto che forniamo costituisce consulenza finanziaria, consulenza legale o qualsiasi altra forma di consulenza intesa per la vostra specifica dipendenza per qualsiasi scopo. Qualsiasi uso o affidamento sui nostri contenuti è esclusivamente a proprio rischio e discrezione. Devi condurre la tua ricerca, rivedere, analizzare e verificare i nostri contenuti prima di fare affidamento su di essi. Il trading è un'attività altamente rischiosa che può portare a perdite importanti, pertanto si prega di consultare il proprio consulente finanziario prima di prendere qualsiasi decisione. Nessun contenuto sul nostro sito è pensato per essere una sollecitazione o un'offerta