The cryptocurrency market saw another decline on December 10, 2024, with Bitcoin falling below $95,000 for the second time in recent days, sparking widespread selloffs.
Meme coins, in particular, suffered some of the most severe losses. Dogecoin (DOGE), after briefly hitting a multi-year high of $0.485, has fallen 12% over the past 24 hours, now trading below $0.40. Shiba Inu (SHIB) fell 15% to $0.000025, while other meme coins such as FLOKI, BONK, and WIF all suffered declines of around 20%. FLOKI struggled to hold above $0.00022, while BONK traded as low as $0.00034. Despite recent setbacks, these meme coins still lead the market in terms of social engagement, with Dogecoin and Shiba Inu remaining among the top 20 assets by market capitalization.
The meme coin’s losses were compounded by a broader market correction that led to a significant drop in the prices of large-cap altcoins. Following Bitcoin’s decline, meme coins have faced extreme volatility. Dogecoin price continued to struggle, marking a 10% decline, after briefly falling below $0.39 on Monday. The situation echoes the woes of other meme tokens like BONK and FLOKI, which saw similar declines of 16% and 15% respectively. Meme coin market risk is especially evident during corrections like the current one, where sudden price drops, often due to speculative trading, lead to sharp corrections.
The price of Ethereum also came under pressure, falling around 6%, contributing to sell-offs in the Ethereum and Bitcoin markets. Derivatives exchanges reported over $700 million in liquidations, with Binance leading the way with $734 million. The increase in liquidations was driven by overleveraged positions, particularly in coins like Dogecoin and Shiba Inu, further worsening the downturn.
Despite the volatile environment, there are no signs yet of a complete market turnaround. Bitcoin has stabilized around $97,000, and although Ethereum and Solana remain under pressure, their losses are not as severe as the declines seen in meme coins. The meme coin sector remains one of the most volatile and risky in the market, especially for investors heavily involved in leveraged positions.
The overall market trend points to continued uncertainty, with the corrective phase leading to a mix of liquidation cascades and investor anxiety. Although some coins like Dogecoin and Shiba Inu have seen significant setbacks, the next few days will likely be crucial in determining whether the market as a whole will find stability or continue to struggle.
