The global crypto market cap is down by 1.97% and hovers around $2.02 trillion. The FGI has slipped to 43 points for neutral sentiments. Given that the Ripple v. SEC dispute has finally reached a resolution, rumors of a $10 trillion market valuation have begun to circulate, and that Coinbase has announced its first AI-to-AI crypto transaction, the cryptocurrency market should likely be thriving right now. This is only the tip of the iceberg, and much more is likely to happen before cryptocurrencies see an increase. However, the trend indicates otherwise.
Bitcoin and Ethereum test new lows
Lows in this case refer to recent numbers, not overall performance. BTC is down to $57,493.74 after a 1.40% drop in the last 24 hours. The drop has now increased to 10.26% in the preceding 7 days, which is cause for alarm. The prospect of a rate cut keeps Bitcoin in demand. That is precisely one reason why the market may be down right now. The price movement most likely indicates a potential buying opportunity prior to a spike of any magnitude.
ETH has plummeted by 1.72% during the same time window. It is exchanging hands at $2,439.46. Ethereum tokens have their reasons for falling—flows of Spot Ether ETF are at the top. It was not until August 28, 2024, that the segment experienced inflows. ETFs. The next day, ETFs returned to an outflow of $1.7 million.
Meme Coins are down, heavily
In certain aspects, it is surprising, but meme coins have experienced a significant decline in the past 24 hours. For instance, Dogecoin has experienced a 5.62% decline and is currently priced at $0.09411. The second-ranked meme coin has fallen by 4.31%, now exchanging a value of $0.00001312. The gap between their market cap has narrowed. DOGE and SHIB are only approximately $6 billion away from each other.
Meme coins are likely to follow in the footsteps of flagship tokens. PEPE had an optimistic future. It still prevails, but the current situation is dubious, with a fall of 5.13% in a single day. The token value is around $0.000007136. Meme coins continue to target the tag of the best altcoins in the world.
Other Gainers and Losers
XRP and SOL are down by 2.37% and 4.01%, respectively. Their token values are $0.5464 and $127.97, applicable in the same order. Solana token is next poised to surpass the milestone of $150 by the end of this year. Alternatively, it could breach the $200 mark if the market sees a boost in liquidity from investors following the Federal Reserve’s announcement about rate cuts.
FLOKI and WIF are down by 6.29% and 6.70%, respectively. Despite earlier estimates of both tokens hitting new milestones, they have retraced their steps and are now on the decline. FLOKI is listed at $0.000117, while WIF is paired with the US Dollar at $1.40.
Conclusion
The much-awaited announcement by the Federal Reserve is to blame for the ongoing dips in the crypto market. BTC and ETH are down, and so are other major meme coins. Once rates drop and investors find a window to inject liquidity into the ecosystem, a rebound is imminent. For now, Spot Ether ETFs and Spot Bitcoin ETFs are deciding the fate of both flagship cryptos.
Disclaimer: All values in the article were true at the time this piece was drafted. In any case, content is neither investment advice nor recommendation.