The cryptocurrency market is in retreat once again, with bitcoin dumping below $95,000 for the second time since Monday evening.
While many altcoins are also deep in the red, the ever-volatile meme coin sector has produced some of the most violent corrections.
Although there are many success stories of small-time investors turning thousands of dollars into hundreds of thousands or even millions, the meme coin niche remains highly-volatile and risky, especially in times of market-wide corrections.
The current situation solidifies this narrative. Bitcoin has declined by 3% on a daily scale, dropping below $95,000 minutes ago. Many larger-cap alts, such as ETH, SOL, and BNB, have slipped even more – by around 7% each.
However, assets from the meme coin industry, like BONK, FLOKI, and WIF, have all dumped by around 20%. Consequently, BONK is down to $0.00034, FLOKI is south of $0.00022, and WIF struggles beneath $2.8.
The landscape around the two largest meme coins is not that much brighter. Shiba Inu is the worst performer from the top 20 altcoins, having dumped by 15% to $0.000025.
Dogecoin is also down by double digits. DOGE has slumped by 12% in the past 24 hours and now trades well below $0.4. Recall that the OG meme coin charted a new multi-year peak of $0.485 only a few days ago.
The market-wide correction has resulted in nearly $1.7 billion in liquidations across all assets. Naturally, longs are responsible for the lion’s share, with $1.5 billion.
ETH is first from the individual assets, with $250 million in longs wrecked, followed by BTC with $175 million. Interestingly, DOGE ranks third, even though it’s the sixth-largest non-stablecoin asset, showcasing the dangers of over-leveraged meme coin trading.
