- Bitcoin and Ethereum dropped over 7% each as the crypto market turned bearish early Tuesday after approaching all-time highs last week.
- Solana-based meme coins like BONK, BOME, and SLERF saw steep declines between 20-57% as the selloff hit newer entrants hardest.
- Bitcoin’s brief 80% flash crash on BitMEX late Monday may have spooked traders, sparking the broader crypto selloff.
Major cryptocurrencies like Bitcoin and Ethereum saw sharp drops early Tuesday as the crypto market turned bearish. Popular meme coins built on Solana also saw outsized losses compared to larger cryptos. The flash crash comes right after the crypto market approached its all-time high last week.
Bitcoin and Ethereum Drop Over 7% Each
Bitcoin fell below $63,000 Tuesday morning after starting the week above $68,000. Ethereum similarly dropped around 10% to fall back below $3,300. The global crypto market cap contracted by 8% overnight, dropping below $2.5 trillion. The rapid reversal caught many traders off guard after the bull market last week.
Solana Meme Coins Experience Steep Declines
While Dogecoin and Shiba Inu saw more modest single-digit drops, newer meme coins on Solana were hit harder. BONK, which recently hit an all-time high, sank over 20% in the last week. Meanwhile, Book of Meme (BOME) plunged 57% from its peak this weekend amid a controversy over alleged insider trading on Binance.
Slerf Takes a Tumble After Botched Presale
Slerf (SLERF) emerged as the latest hot Solana meme coin over the weekend, but it tumbled after the anonymous developer accidentally burned the presale tokens. While SLERF is still up on the day, it sank 25% from an overnight peak. The botched presale prompted decentralized exchange Jupiter to pledge donated trading fees to affected users.
Bitcoin’s Brief Crash on BitMEX Sparks Selloff
The crypto crash picked up steam late Monday after Bitcoin flashed crashed on crypto exchange BitMEX, plummeting 80% to $8,900 in minutes. While quickly reversed, the incident may have spooked traders and kicked off the broader selloff. The market is still processing the brief yet shocking crash.
Conclusion
After approaching its former all-time high last week, the crypto market rapidly reversed course early Tuesday. Meme coins built on Solana were among the hardest hit cryptos, with newer entrants seeing drops between 25-57% from their peaks. The market remains volatile following Bitcoin’s flash crash on BitMEX, leaving traders uneasy.
