TechFlow news, March 14 — Matrixport report disclosed that despite recent weakness in the U.S. dollar driving a rebound in global liquidity indicators and slight improvements in inflation data, the meme coin sector within the cryptocurrency market remains sluggish, showing no signs of recovery.
Although this week's U.S. inflation report came in slightly better than expected, it offered little comfort. Ongoing uncertainty surrounding trade policy continues to leave markets pessimistic about the Federal Reserve's prospects for near-term easing measures.
The report noted that the altcoin market peaked in early December 2024 before beginning its decline, with the meme coin bubble bursting in January this year, causing the total market capitalization of the cryptocurrency market to fall from $3.6 trillion to $2.6 trillion.
A previous report indicated that hedge fund deleveraging and closing of arbitrage positions were the primary drivers behind recent Bitcoin sell-off pressure, suggesting this selling phase may now be approaching peak intensity.
