The meme coin crypto industry led by Pepe and Shib has dramatically reduced in valuation in the past four weeks to around $47 billion on Tuesday.
More than $300 million from leveraged crypto trading was liquidated in the past 24 hours, mostly involving long traders, as Bitcoin (BTC) price trades below $60k. The total cryptocurrency market cap dropped to around $2.36 trillion, as Bitcoin price hovered around $60.6k during the early European session.
The ebbing demand for spot Bitcoin exchange-traded funds (ETFs) in the United States has significantly contributed to the ongoing correction. Moreover, the Bitcoin fear and greed index shows increased worry among investors of further bearish sentiment.
However, market pundits believe now is the best accumulation time that could attract more long-term investors, thus leading to a V-shaped reversal.
Meme Coin Crypto Whales Accelerate Profit-Taking
The meme coin industry, led by Dogecoin (DOGE), has lost more than $20 billion in the past few weeks to about $49.6 billion on Tuesday. The ongoing crypto correction has seen whale traders accelerate profit-taking in the meme coin industry. Moreover, Bitcoin price could lead the crypto industry to further losses before the inevitable parabolic rally.
Two big whales deposited $25.95M worth of $SHIB and $PEPE to #Binance in the past 14 hours. Did whales become bearish with #Ethereum #memecoins?
1. Whale 0x42a deposited all 1.088T $SHIB ($18.12M) ~14 hours ago.
• Accumulation period: Nov and Dec 2023 (the market bottom).
•… pic.twitter.com/fspHueZ7Mi— Spot On Chain (@spotonchain) June 25, 2024
According to on-chain data analysis provided by spotonchain, a Shiba Inu (SHIB) whale address, which accumulated around 1.088 trillion coins late last year, deposited all the coins in the Binance exchange earlier today. Notably, the whale trader made an estimated profit of about $8 million.
Earlier today, a different crypto whale deposited 700 billion Pepe (PEPE) coins to Binance, worth nearly $8 million.
What Next?
The meme coin industry will continue to register heightened volatility amid the ongoing crypto mainstream adoption led by institutional investors. If Bitcoin price continues in a choppy mode in the coming weeks, most of the meme coins will drop further before the buyers establish control.
The TD Sequential presents buy signals on the daily charts of #Solana, #ShibaInu, and #Cardano, anticipating a price rebound for these #altcoins! pic.twitter.com/P8ZOYm9qTu
— Ali (@ali_charts) June 25, 2024
However, according to a popular crypto analyst Ali Martinez, the altcoin industry led by Shiba Inu, Solana (SOL), and Cardano (ADA) could soon rebound. The crypto analyst highlighted that the daily TD Sequential indicator has flashed a buy signal.
With the accelerated calls for a market rebound, an investor has been spotted buying nearly 1 million dogwifhat (WIF), worth around $1.6 million. The crypto investor currently holds around 3.97 million WIF, worth about $7.3 million.
Bigger Picture
The upcoming $9 billion market dump by Mt. Gox has sent shivers in the crypto market. Moreover, the announced market dump will negate almost half of the gains made through the US spot Bitcoin ETFs since inception.
The meme coin industry will, therefore, continue to follow the crypto cash rotation models. As a result, crypto traders should closely monitor the impact of the upcoming listing of spot Ethereum ETFs in the United States.
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