Memecoins fall sharply after the breakdown of China-US talks.
Amid a difficult day for the financial markets, memecoin prices fell sharply. The main Wall Street indices closed almost flat, despite spending much of the day in the red. This imbalance was caused by a new round of tensions between China and the United States.
US Treasury Secretary Scott Bessent admitted on Thursday that relations with China are at a standstill. This Friday, President Trump increased the uncertainty with a post on Truth Social, in which he claimed that China had violated all the terms of the agreement reached in Switzerland.
Furthermore, the Republican president pointed out that China was behaving disloyally, despite his agreement to negotiate out of "mercy." He added that the tariffs imposed had caused an economic collapse in China and that the situation could have led to unrest in the Asian country. According to Trump, his decision to reach out to Beijing was to avoid that scenario.
China responded quickly, accusing the United States of imposing abusive controls on semiconductor exports. This exchange of accusations made it clear that trade relations between the two major global powers are far from normalized. The consequences of this conflict were reflected in the cryptocurrency market, especially in memecoins, which are experiencing significant declines.
The main memecoins are in the red.
During the trading session this Friday, memecoins experienced a sharp decline. Within 24 hours, the entire top 10 of these tokens by market capitalization posted losses, with eight of them experiencing double-digit drops. On a weekly basis, nine of the top 10 memecoins also recorded double-digit losses.
The sector's market capitalization fell to $62.15 billion. Another indicator that clearly reflects sentiment in the sector is the Market Vector index, which shows a 14% drop in one week, as seen in the corresponding chart.
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