Bitcoin, the largest cryptocurrency, has lost almost half its value from its record. Its price fell 48.13%, from an ATH of $126,080 to the current $65,374. That is a loss of hundreds of billions of dollars. What caused this crash, and how is it affecting altcoins, memes and others such as Solana, Ethereum, XRP and Trump (memecoin)?
Why is Bitcoin falling?
The main reasons are high interest rates and the Fed’s policy, which is pushing investors away from risky assets. On top of that come liquidations of positions and sell-offs from ETFs. The policy toward crypto raises doubts and may bring tougher regulations. Similar declines happened before, for example in 2018 or 2022, when it lost as much as 80-90%. Here is a chart of historical declines:
The Fear index shows panic in the market. Without a rebound, things could get worse.
How is it affecting altcoins?
Bitcoin is dragging the rest down. Ethereum fell 57.4%, from an ATH of $4,946 to $1,919. Weak ETFs and institutional pressure are making things worse. Solana lost 68.2%, from $293 to $81. There is no hype around memes and NFTs. XRP is down 57.9%, from $3.65 to $1.22. Regulation and uncertainty are the key. Other altcoins are also losing very heavily.
Memecoins in trouble
The Trump memecoin (TRUMP) fell 95.14%, from an ATH of $73.43 to $3.53. Other memes such as DOGE or SHIB are also down sharply. Memes depend on Bitcoin – when it falls, they drop first and much harder.
| Cryptocurrency | Impact |
|---|---|
| Bitcoin | Dragging the market down |
| Ethereum | Weak ETFs, DeFi problems |
| Solana | No hype |
| XRP | Regulations |
| Trump memecoin | Sell-off |
What next?
The market is fleeing from risk, but after declines, rises often follow if the Fed cuts rates. This may be an opportunity, but many coins will not return to their peaks – probably for a long time.
