Crypto Market Update: Bitcoin Drops, U.S. Election Meme Tokens Plummet, Industry Poised for Growth

Introduction

This article originally appeared in First Mover, CoinDesk’s daily newsletter, providing insights into the latest developments in crypto markets. Subscribe to receive daily updates in your inbox.

Latest Prices and Top Stories

Bitcoin (BTC) experienced a 4% decline, dropping to $60,000 during the European morning on Wednesday. BTC led the downward trend among major cryptocurrencies, with the broader digital asset market, as indicated by the CoinDesk 20 Index (CD20), falling nearly 3.3%. The decline followed a five-day streak of inflows into U.S. spot BTC ETFs, which recorded $13 million in outflows on Tuesday. Additionally, concerns about potential selling pressure from Mt. Gox, a defunct crypto exchange planning a significant Bitcoin release, added to the market unease.

U.S. election-themed meme tokens are facing significant losses, with some plummeting close to 95% from their peak prices. Notably, Solana-based Jeo Boden (BODEN), a token linked to Joe Biden, has seen a 70% drop in the past week and an 80% decline in the last 30 days, returning to early March levels. Even Donald Trump-themed tokens have experienced declines, despite a surge in Trump’s electoral prospects post-debate. The political finance (PoliFi) sector has shrunk by 11% in the past 24 hours, contrary to expectations following the recent debate. Analysts suggest that the creation of new meme coins might be triggered by significant events like Trump’s selection of a running mate.

The crypto industry is poised for substantial growth and is significantly stronger than it was two years ago, according to a quarterly report by investment bank Architect Partners. The report highlights that the crypto industry’s value surged by over $750 billion in the first half of the year, positioning it as a standout within the broader tech landscape. Drawing parallels between crypto and the internet as disruptive technologies, the report underscores the rapid recovery of the cryptocurrency market from the previous downturn compared to the internet’s rebound post the dot-com bubble burst in 2000.

Chart of the Day

– Omkar Godbole