More crypto crash is coming, following the SEC new statement

Why is Crypto crashing:

Investor sentiment has worsened, as shown by the Crypto Fear & Greed Index, which has dropped to 16, indicating "Extreme Fear." This is the lowest level in three years 

Dogecoin and other meme coins are facing a tough time as the entire cryptocurrencymarket experiences a decline. One of the main reasons for this drop is Bitcoin falling below the $80,000 support level. Additionally, a new statement from the U.S. Securities and Exchange Commission (SEC) regarding meme coins has also contributed to the downturn. Popular meme coins like Dogecoin, Shiba Inu, and Pepe have all seen their prices decline due to these factors.

Another major reason for the sell-off is the recent hack of the Bybit exchange, which resulted in a loss of $1.4 billion. The overall market value of Solana-based meme coins has also dropped by nearly 4%, now standing at $8.7 billion. The combined effect of Bitcoin’s decline and the Bybit hack has created panic among investors, leading to further losses.

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The SEC recently issued guidance on meme coins, stating that transactions involving them are not considered securities under federal law. While this clarification might have removed some regulatory concerns, it has not been enough to stop the decline in meme coin prices. Traders remain cautious, and the market is struggling to recover from recent losses.

Investor sentiment has worsened, as shown by the Crypto Fear & Greed Index, which has dropped to 16, indicating "Extreme Fear." This is the lowest level in three years and signals that many traders are avoiding risky investments. The overall uncertainty in the market has kept meme coins under pressure, making it difficult for them to bounce back.

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According to a report from 10x Research, the launch of the Trump Coin ($TRUMP) has played a role in changing the market’s momentum. Analysts believe that speculative trading in meme coins has slowed down, and the market is likely to remain weak for now. With continued downside pressure, investors may have to wait for better conditions before meme coins can see a recovery.