If Floki and Bonk fall fast, may the crypto market collapse?
Meme currencies like Floki and Bonk are plummeting drastically today after the Federal Reserve gave a gloomy prognosis on inflation and how fast they aim to decrease rates next year.
As inflation is expected to remain over their 2% objective in 2025, the Federal Open Market Committee (FOMC) will lower rates twice next year instead of four times, according to the central bank chairman.
Financial markets have less liquidity with fewer rate decreases. Crypto assets are sensitive to news like the Fed's surprise monetary policy move, which is creating a huge market drop.
BONK has lost 19.2% and FLOKI 23.7% in the previous 24 hours. The CoinMarketCap market valuation of meme currencies fell from $137 billion on December 8 to $87.6 billion this morning.
This implies approximately $50 billion in market value has vanished quickly.
These two tokens have lost much more in the previous 30 days: $BONK has fallen 53.2% and FLOKI 38.8%.
FLOKI and BONK May Reach Horizontal Supports
Crypto expert Altcoin Hunter on X predicts $FLOKI ll shortly retest $0.00011, a crucial horizontal support. Short-term selling would halt at this stage.
BONK might retest $0.000017 or bounce off the chart's trend line.
Most meme currencies like BONK and FLOKI were destined for a dip as their recent vertical upswings proved unsustainable. However, the Federal Reserve's surprise statements may have worsened this weakening by surprising market players.
For now, the market is processing the news and maybe fretting over nothing. The decrease of over 30% for various meme currencies in the last 30 days warrants the term crash.
All of these assets have performed well YTD. BONK has up 92.9% since the year began, while FLOKI has risen 336.4%.
