Why is crypto down? Are Meme Coins Dead? Dive into the crypto crash and discover what’s at stake for the meme coin market as chaos ensues.
We woke up today witnessing a slaughterhouse in the meme coin world with mass panic visibly spreading through the day.
With meme coins dying left, right, and center while Bitcoin is having its worst day since late 2022. What can we expect in the upcoming days? Let’s dive in.
Crypto Crash: Black Swan Event? Why is Crypto Down?
All that matters for you today is to survive. It's that simple. Don't try to catch the bottom. Don't try to short. Survive.
— VikingXBT (@VikingXBT) August 5, 2024
What is currently happening in crypto and why meme coins are straight-up nuking is what’s called a black swan event. It’s something outside the norm, unpredictable, and where you could expect markets to nuke. Basically, it’s fear.
What has kickstarted this for crypto as we speak is one of the biggest market makers and trading firms in Jump Trading’s crypto division market, selling all their holdings even on weekends while liquidity is low.
They have been selling for weeks but accelerated over the weekend. Iran-US/Israel conflict is on the verge of breaking out.
Speculations that Powell and the FED in the US did not cut rates in August accelerated Japan’s economy to basically collapse Monday morning. Grayscale is selling both Ethereum and Bitcoin at a very high rate.
The list of negative things affecting crypto (and macro markets) is endless right now. The fact is that markets are at their highest on good news and lowest on bad news. So things might be looking grim, but better times are coming!
DISCOVER: How to Buy Ethereum as a Beginner
A New Narrative Amid the Chaos? Are Meme Coins dead?
No meme coins are not dead. Yes, they tumbled a lot more than other coins, such as Utility or DeFi. Why? Because they have less liquidity.
This means it takes less dollars to move a coin than on a non meme coin.
Another factor could be inexperienced market participants and a higher percentage of retail holders.
There is not much to look at or analyze on the meme coin charts right now. A good advice would be not to panic when there’s fear in the markets like today.
Irrational decisions not thought through with a calm mind are usually not good decisions. Give the market a week or two to stabilize after such an event.
EXPLORE: 20 Next Cryptocurrency to Explode in 2024
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
