[Analysis] "Meme coins struggle despite liquidity rebound... Bitcoin also faces continued risks"
Summary
- Meme coins are experiencing serious underperformance despite the liquidity rebound.
- According to the report, cryptocurrency market capitalization underwent a major correction, resulting in $1 trillion evaporating.
- This week's US inflation indicators showed some improvement, but failed to provide significant reassurance to the market.
Despite the global financial market's liquidity showing some recovery, analysis suggests that the meme coin market continues to face weakness.
On the 14th, cryptocurrency service provider Matrixport stated in a research report, "Recently, as the US dollar has weakened, liquidity indicators have rebounded and some inflation metrics are showing signs of improvement," but added that "meme coins, which gained attention during this bull market, are still experiencing serious underperformance with no signs of recovery."
The report explained, "After the meme coin bubble peaked in January, a major correction occurred across the altcoin market," adding that "subsequently, cryptocurrency market capitalization evaporated by $1 trillion, dropping from $3.6 trillion to $2.6 trillion."
It continued, "Although US inflation data announced this week recorded slightly better figures than expected, it did not provide much reassurance to the market," and added, "Due to market uncertainty, investors are likely to be more cautious about injecting new funds."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
