Political-Themed Memecoins Face Steep Declines Amid Broader Market Selloff
Memecoins themed around U.S. President Joe Biden and Republican frontrunner Donald Trump, is experiencing a more severe selloff than the broader crypto market. The Political memecoin market cap has plummeted by over 13% in the past 24 hours. In comparison, Bitcoin has dropped around 4%, while Ethereum has fallen 5.4% in the same timeframe.
Leading the downturn is the FreeTrump token ($TRUMP), which has seen its value nosedive by 45% over the past 24 hours. MAGA (TRUMP), the largest PolitiFi coin by market cap at $560 million, has also taken a significant hit, declining by 13%. The market turmoil coincides with significant political news. A federal jury found Hunter Biden guilty on three federal felony gun charges, determining that he violated laws meant to prevent drug addicts from owning firearms. This verdict marks an unprecedented event, as it is the first time a sitting president's son has been found guilty of a crime while his father is in office, according to CNN.
Interestingly, around the time the guilty verdict was announced on Wednesday, the Solana-based Hunter Boden token (HUNTERBODEN) experienced a sharp spike, surging more than 30% over the past 24 hours to $0.001514. This surge stands in stark contrast to the overall decline in the PolitiFi sector. Meanwhile, another popular memecoin of 2024, Jeo Boden (BODEN), saw a decline of 5.5%, trading at $0.1855.
The broader equity market has also faced selling pressure ahead of Wednesday’s key macroeconomic updates. Investors are anxiously awaiting the monthly Consumer Price Index (CPI) report and a Federal Reserve monetary policy announcement. In recent weeks, expectations have waned regarding the possibility of the Federal Reserve cutting interest rates, adding to the market's cautious sentiment.