BTC Price Index and Live Chart – CoinDesk”>(BTC) prices, leading to a more than 20% decline for some tokens in the past week.

Solana’s SOL dropped 7% and Avalanche’s AVAX fell 9% over the last 24 hours. This reversed gains made in December when meme coins led to a revival of both ecosystems, with token prices hitting a year-high at that time.

The tokens of two of the most popular networks fell even more: Solana, with its leading meme token BONK, fell 10% while JOE, which is the token of Avalanche’s decentralized exchange Trader Joe fell 12%.

DOGE Price Index and Live Chart – CoinDesk”>(DOGE) traded at 6 cents, completely retracing its entire weekend move to 9 cents driven by speculations of its adoption on social application X’s upcoming payments service.

CoinDesk 20 – a liquid index which tracks the top tokens in terms of capitalization – fell by 4%. This is indicative of the average declines on the crypto market.

Among those tokens that were in the green was FTX’s FTT , buoyed up by revival hopes and Uma Network UMA which had been purchased by market influencers via X over the last week in anticipation of an upcoming launch.

Analysts at Bitfinex, a crypto-exchange, said that in a note published on Tuesday, the recent drop in bitcoin prices has wiped out short-term gains. The realized losses have also increased, contributing to the market’s decline.

Bitcoin short-term investors are leaving at a loss. (CryptoQuant)

Over half of profits made by short-term investors have been lost under $43,000. Holders, particularly those who bought BTC less than one month ago, have now seen their profits plummet.

Analysts said that exiting the market with a loss was a bad idea. This substantial drop in the average profit for short-term investors, who are more sensitive to market fluctuations on a short-term basis, could be an indication of selling pressure.

Bitfinex said that a significant price correction, even lower than current levels on the market, would not be unexpected. This sentiment is shared by an increasing number of traders who believe bitcoin will fall to as low as $38 000 over the next few weeks.

Parikshit Miishra is the editor.