The cryptocurrency market, dominated by Bitcoin and altcoins, is experiencing volatility. Despite increased global liquidity, meme coins suffer losses.
Global Liquidity Increases but Limited Market Impact
Recent data suggests an increase in global liquidity due to the weakening of the US dollar. The money supply from 28 central banks affects Bitcoin prices, which should theoretically be positive. However, market uncertainties weaken this effect.
Significant Value Loss in Meme Coins
Meme coins, once popular, have faced significant losses. The Solana ecosystem, particularly Raydium and Solana, has been impacted. Decentralized exchanges like Pump.fun, previously successful, now face reduced trading volumes.
Decreased Market Capitalization and Investor Expectations
Weak altcoin momentum and meme coin value drops have led to a decline in overall cryptocurrency market capitalization. Investors cautiously assess risks, awaiting Federal Reserve actions and improved macroeconomic conditions.
The future direction of the market will heavily depend on Federal Reserve policies and external economic factors.
