The cryptocurrency market saw another decline on Dec. 10, 2024, with Bitcoin dropping below $95,000 for the second time in recent days, causing widespread liquidations.
Meme coins in particular have experienced some of the most severe losses. Dogecoin (DOGE), after briefly surging to a multi-year high of $0.485, fell 12% in the past 24 hours, now trading below $0.40. Shiba Inu (SHIB) dropped 15% to $0.000025, while other meme coins such as FLOKI, BONK and WIF all suffered declines of about 20%. FLOKI struggled to hold above $0.00022, while BONK was trading as low as $0.00034. Despite the recent setbacks, these meme coins still dominate the market in terms of social engagement, with Dogecoin and Shiba Inu remaining among the top 20 assets by market cap.
The losses for meme coins were compounded by a broader market correction that saw a significant decrease in the prices of large-cap altcoins. In the wake of Bitcoin's dip, meme coins faced extreme volatility. Dogecoin’s price continued to struggle, marking a 10% drop, after briefly falling below $0.39 on Monday. The situation echoed the woes of other meme tokens like BONK and FLOKI, which had seen similar declines of 16% and 15% respectively. The meme coin market’s risk is particularly evident during corrections like the current one, wherein sudden price drops, often due to speculative trading, lead to sharp corrections.
Ethereum’s price also faced pressure, falling by about 6%, contributing to liquidations in both the Ethereum and Bitcoin markets. Derivatives exchanges reported over $700 million in liquidations, with Binance leading at $734 million. The surge in liquidations was driven by over-leveraged positions, especially in meme coins like Dogecoin and Shiba Inu, further exacerbating the downturn.
Despite the volatile environment, there aren’t yet signs of a full market reversal. Bitcoin has stabilized around $97,000, and while 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 trend across the market points to ongoing uncertainty, with its corrective phase resulting in a mixture of liquidation cascades and investor anxiety. While some coins like Dogecoin and Shiba Inu have seen substantial setbacks, the next few days will likely be pivotal in determining whether the broader market will find stability or continue to struggle.