Memecoins are falling sharply after the breakdown of talks between China and the U.S.
Amid a complicated day for financial markets, the prices of memecoins are falling significantly. The main indices on Wall Street closed with almost flat results, despite spending much of the day in the red. This mismatch was caused by a new round of tensions between China and the United States.
The U.S. Treasury Secretary, Scott Bessent, admitted on Thursday that relations with China are at a standstill. On Friday, President Trump increased uncertainty with a post on Truth Social, in which he claimed that China had violated all terms of the agreement reached in Switzerland.
In addition, the Republican leader noted that China was behaving unfairly, despite having agreed to negotiate out of 'mercy.' He added that the imposed tariffs 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 extend a hand to Beijing was to avoid that scenario.
China quickly responded, accusing the United States of imposing abusive export controls on semiconductors. This exchange of accusations made it clear that trade relations between the two major global powers are far from normalizing. 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 day on Friday, memecoins experienced a strong setback. Within 24 hours, the entire top 10 of these tokens by market capitalization showed losses, and 8 of them suffered double-digit declines. In the weekly balance, 9 of the 10 main memecoins also accumulate double-digit losses.
The market capitalization of the sector dropped to 62.15 billion dollars. Another indicator that clearly reflects the sentiment in the sector is the Market Vektor index, which shows a 14% drop in a week, as seen in the corresponding chart.
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