- Cryptocurrencies have been under pressure in the past few months.
- Bitcoin price has crashed from the YTD high of $31k to $26,000.
- Meme coins like pepe, Dogelon Mars, and Safemoon have all recoiled.
Pepe, Safemoon, and Dogelon Mars prices have retreated in the past few months as demand for meme coins dropped. The Pepe token price dropped to a low of $0.000001 and is approaching its all-time low. Similarly, Safemoon price dropped to a low of $0.00014, which is over 60% below the year-to-date high.
Other meme coins also continued selling off. For example, Dogelon Mars price has dropped by more than 74% from the YTD high. The same trend is true with Milady Meme Coin, Shiba Inu, and Shiba Saga.
Meme coins and other cryptocurrencies are facing major headwinds. Like other digital coins, the overall volume of meme coins traded in exchanges has been in a strong downward trend. The volume of Pepe traded in the past 24 hours stood at over $43 million. At its peak, its volume was over $500 million.
Shiba Inu’s volume in the same period stood at over $99 million while Dogelon Mars stood at over $7.7 million. Safemoon’s volume was just $1.09 million in the same period.
The other major headwind is on regulations. The Securities and Exchange Commission (SEC) decided to sue Coinbase and Binance.
While the SEC has lost several lawsuits recently, there is a likelihood that these cases will have a major impact on the crypto industry. Recently, Binance has seen several senior executives quit, signaling that insiders are worried about the company.
US soaring interest rates
Another big issue is on monetary policy in the United States, where the Federal Reserve has maintained a hawkish tone recently. It has pushed interest rates to the highest level in more than two decades.
The impact of these rate hikes is that many people, especially in the United States, have moved to safe havens. Two of the most popular safe havens are certificates for deposits (CDs) and money market funds. These havens are have a risk-free yield of more than 5%.
Like other cryptocurrencies, Pepe, Safemoon, and Dogelon Mars are waiting for the outcome of SEC’s ETF review. Most analysts believe that the SEC will approve at least one Bitcoin ETF. Such a move will be beneficial to Bitcoin and other cryptocurrency prices. In most periods, Bitcoin has a close correlation to these coins.
