The post Meme coins drop over 10% following GameStop’s stock crash appeared on BitcoinEthereumNews.com.

Meme coins have experienced a notable decline alongside GameStop’s stock crash on June 7. Although the drop was smaller than GameStop’s, major meme coins like Pepe, Dogewheat, Floki, and Bonk fell by over 10%. The unpredictability of the market was evident as GameStop’s stock surged 47% the previous day in anticipation of a live broadcast by Keith Gill, known as ‘Roaring Kitty,’ who had led the GameStop rally. However, the stock price plummeted by as much as 40% after the 50-minute broadcast, which offered no new information. The unpredictability also impacted meme coins, which had piggybacked on the meme stock rally, leading to their drop. According to data from CoinMarketCap on June 8, Dogecoin and Shiba Inu had fallen by 7.56% and 6.23%, respectively. Pepe dropped 10.82%, Dogewheat 12.47%, Floki 12.93%, and Bonk 11.35%, all recording declines in the early 10% range. Prominent analyst Il Capo analyzed the situation as a “shakeout” amid an uptrend, noting a clear support test for Solana, the underlying platform of major meme coins. #crypto market update Strong sell-off into support. Alts suffered more, but it looks like a shakeout tbh. If these support levels hold, we should see bullish continuation soon. pic.twitter.com/EdHT7a1J7n — il Capo Of Crypto (@CryptoCapo_) June 7, 2024 Not just meme coins; entire crypto market feels the impact The crypto market is down by $65 billion in less than a week. This market downturn led to a rotation of capital into stablecoins or less risky bets, further contributing to the decline of meme coins. The social volume of these altcoins also plummeted by more than 20% in the last 24 hours, reflecting the negative sentiment alongside the price decline. Gill’s resurgence (he returned to social media after more than three years) reignited excitement and frequent trading halts in GME trading on…

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Filed under: News - @ June 9, 2024 10:28 am