Dogecoin and Pepe have plunged 8% and 12% respectively during a weekend crypto sell-off starting May 31. The altcoin downturn appears driven by three interconnected factors: renewed U.S.-China trade tensions, Bitcoin whale sell-offs, and a broader risk-off mood across financial markets. These memecoins’ high volatility makes them particularly vulnerable to macroeconomic shocks compared to larger-cap assets.
The sell-off coincides with Bitcoin dropping below $104,000, triggering over $600 million in leveraged position liquidations. As traders reduced exposure to riskier assets, less liquid altcoins like Dogecoin and Pepe faced amplified downward pressure. Chain data shows significant Bitcoin movements from whale wallets to exchanges, suggesting large holders are taking profits amid geopolitical uncertainty.
This pattern mirrors previous market cycles where altcoins underperform Bitcoin during periods of heightened volatility. Analysts warn the memecoin slump could persist until macroeconomic conditions stabilize and Bitcoin regains its upward momentum.
