- Meme coins drop sharply as Bitcoin falls to $103k, Ethereum declines 4%, and broader market volatility intensifies.
- Regulatory warnings, such as FCA’s alert on the Retardio token, increase market panic, further pressuring meme coin prices.
- Analyst Arthur Hayes predicts sharp crypto declines by Jan 2025, adding to the market concerns.
Meme coin traders face losses as fluctuations in cryptocurrencies like Bitcoin and Ethereum intensify. These dips, alongside regulatory crackdown and investor concerns over predicted dips, have led to declines in meme coin prices.
The market saw high correction as Bitcoin briefly reached a record high of $108,000 before dropping below $106,000. The overall market capitalization declined by approximately 1% to $3.71T, with trading volumes falling to $185B. At time of writing, BTC traded at $103,268 down by 2.66%. Ethereum saw a 4% decline, trading at $3,869.
Meme Coins Bearish Trend
Meme coins have suffered declines amid broader market corrections. DOGE dipped by 3.7%, with the price at $0.384. SHIB had a 4.3% decrease, trading at $0.00002569.
Other tokens, such as Pepe (PEPE), fell by 6.8% to $0.00000216, while Bonk (BONK) slid to 4.3%, trading at $0.00003414. Dogwifhat (WIF) token experienced the steepest decline, losing 7.4% to trade at $2.54.
These corrections align with trends observed in larger cryptocurrencies. Bitcoin and Ethereum’s downturn often triggered similar responses in altcoins and meme tokens, showing market volatility.
Regulatory Actions Add Pressure to the Market
In addition to market-driven fluctuations, regulatory warnings have added to investor concerns. The United Kingdom’s Financial Conduct Authority (FCA) recently issued a statement targeting the Solana-based project “Retardio.”
The regulator flagged the project for unauthorized financial promotions and unregistered activities aimed at UK consumers. On December 16, the FCA warned of the risks posed by the Retardio token, emphasizing its potential non-compliance with regulatory standards.
Analyst Predictions Adds to Investor Panic
Panic selling among traders has further added to the downturn in the crypto market. Arthur Hayes, co-founder of BitMEX, shared his belief that markets might face sharp declines around January 20, 2025.
Hayes speculated that inflated expectations of swift policy changes under a new administration could lead to a wave of asset selling, including cryptocurrencies. His view adds to the concerns about the position of digital asset prices in December 2024 and early 2025, which may continue affecting meme coins and other assets in the near term.