It has been a sea of red in the cryptocurrency industry as Bitcoin price has plunged hard in the past few days. Bitcoin has retreated from the year-to-date high of $73,500 to $65,000. Recent attempts to retest its all-time high found substantial resistance at $70,600.
The implication of this Bitcoin price action is that most altcoins have nosedived in the past few days. Meme coins have been the most affected. Pepe price has dived to $0.00000662, down by more than 36% from its highest level this year.
Similarly, dogwifhat’s WIF token has plunged to $3.5, down from the year-to-date high of almost $5. It has crashed by over 27% from its highest level this year. Floki Inu tumbled to $0.00018, much lower than the year-to-date high of $0.00031.
Other meme coins have also tumbled. Dogecoin, Shiba Inu, Bonk, and Book of Meme have also been in a strong downward trend. As a result, the total market cap of all meme coins has retreated from the YTD high of over $65 billion to $59.1 billion.
Shiba Inu vs Dogecoin vs Floki vs Pepe vs Dogwifhat
The main reason why these meme coins have tumbled is that Bitcoin has continued falling in the past few weeks. This decline has happened because of the ongoing outflows from the popular Grayscale Bitcoin Trust (GBTC), the biggest ETF in the industry.
Data on the website shows that the number of Bitcoin coins in the GBTC has dropped to 328,012, which is much lower than the high of over 600k. This decline happened because of the fund’s substantial fees, which are much higher than other funds. GBTC costs 1.50% compared to IBIT’s 0.25%.
Meme coins tend to react to the performance of Bitcoin. In most cases, these coins tend to be held by speculators, who are usually the first ones to exit when there is some volatility in the Bitcoin market.
Therefore, Pepe, Floki, and Dogwifhat prices will only recover depending on the performance of Bitcoin in the coming weeks.
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