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Memecoins Get Hit

Fed Meeting anxiety is causing traders to jettison their riskiest crypto holdings.
David C David C Jun 11, 20241 min read
Memecoins Get Hit

Crypto took a hit today as it braced for tomorrow’s key U.S. inflation report and Federal Reserve meeting. Memecoins were hit particularly hard.

What's the scoop?

  • Majors: Bitcoin began the day near $70K but dipped to a three-week low of $66,170 before recovering to mid-67K, while ETH dropped below $3.5K.
  • Alts Take Largest Hits: As always, altcoins experienced even deeper pullbacks, with dog coins like WIF and FLOKI dropping around 10% and large-cap AI coins like RNDR and TAO slipping 5-7%.
  • Liquidations: The sudden pullback led to over $250M in liquidations of leveraged positions following Friday's $400M liquidations.
  • Investor De-Risking: Investors look to be de-risking ahead of tomorrow's May Consumer Price Index (CPI) report and the Federal Reserve meeting.

Bankless Take:

While dips ahead of FOMC meetings look to have become a normal market event this year, so have rebounds after the meetings. With interest rates expected to be kept the same, a decision in line with this could make traders exhale. That being said, if key inflation rate numbers paint a more dire picture, the Fed could push out its timelines for rate cuts, even with global central banks taking the opposite approach.

David C

Written by David C

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David is a writer/analyst at Bankless. Prior to joining Bankless, he worked for a series of early-stage crypto startups and on grants from the Ethereum, Solana, and Urbit Foundations. He graduated from Skidmore College in New York. He currently lives in the Midwest and enjoys NFTs, but no longer participates in them.

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