According to CryptoPotato, the meme coin sector has experienced a significant downturn, with its market cap decreasing by approximately 5% in the last 24 hours. Despite this, the upcoming Bitcoin halving could potentially trigger a rally, offering a potential rebound for meme coins due to their volatility and tendency to follow Bitcoin's price trends.
The cryptocurrency market has been undergoing a severe correction in recent days, with Bitcoin briefly dropping to $60,000 and Ethereum dipping below the $3,000 level. The meme coin sector has been hit even harder, with its market cap losing around 5% in the past 24 hours, currently standing at approximately $47 billion. Leading assets such as Dogecoin and Shiba Inu have seen weekly decreases of 27% and 22% respectively. Other meme coins, including Dogwifhat, Pepe, Floki Inu, and Bonk Inu, have also experienced double-digit drops. However, Solana-based meme coins Slerf and Cat in a Dogs World have not seen such significant drops. Earlier this week, Cat in a Dogs World saw a 100% daily price spike, with its market capitalization briefly exceeding $500 million.
Despite the current negative trends, traders should remember that the meme coin sector is highly volatile and could see a resurgence in the near future. One key factor that could fuel a substantial revival is the upcoming Bitcoin halving. This event, during which miners will start receiving half the amount of Bitcoin for validating blocks on the blockchain, is scheduled for April 19. Historically, the halving has been followed by a massive bull run for Bitcoin and the entire market, with many analysts expecting a similar scenario in the coming months. This could result in a rally for numerous altcoins and meme coins, as they often follow the price trajectory of Bitcoin.