Tether Investigation Shakes Crypto Market; Meme Coins Face Deeper Losses  

• Crypto markets saw a 2.5% drop, with meme coins PEPE and WIF declining by over 4%.  
• Analyst Miles Deutscher identifies potential meme coins like PEPE and WIF for a rebound.  
• Tether investigation rumors spurred significant sell-offs, particularly affecting meme coin capitalization and trading volume.  

On October 26, 2024, the cryptocurrency market was seeing significant losses, with widespread panic stemming from rumors of a Department of Justice (DoJ) investigation into the stablecoin issuer Tether. This news has caused notable declines across various cryptocurrency sectors, and meme coins have suffered particularly sharp losses. Cryptocurrency commentator Miles Deutscher noted the impact and identified specific meme coins he believes may still offer the potential for gains.

Sharp Declines in Meme Coin Segment  

While the overall market dropped by around 2.5%, meme coins, known for their high volatility, have fared worse. Popular meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) have recorded declines of 2.6% and 4.8%, respectively. Other meme-based coins, such as Pepe (PEPE) and Dogwifhat (WIF), experienced even sharper losses. PEPE saw a 6.9% decrease in value within 24 hours, bringing it close to falling out of the top 30 cryptocurrencies by market capitalization. Meanwhile, WIF’s market value dropped by a steep 7.7%.

Analysts Spot Potential in Key Meme Coins  

In this volatile environment, Miles Deutscher, a respected cryptocurrency analyst, took to social media platform X to share insights with his 551,000 followers. Deutscher remains optimistic about potential gains in meme coins like PEPE and WIF. According to his technical analysis, both meme coins are showing patterns on three-day time frame charts that suggest they could be nearing a breakout. Additionally, Deutscher highlighted FTM and PRIME as promising options, which are associated with the Fantom Layer-1 blockchain and Echelon Prime decentralized gaming platform, respectively.

Following rumors published by the *Wall Street Journal* that Tether may be under investigation, the crypto market has seen a significant decrease in market capitalization, now at approximately $2.38 trillion. Despite the Tether team quickly denying the investigation, the mere report led to over $400 million in liquidations, with long positions accounting for 82% of these losses. CoinGlass data highlighted that meme coins MOODENG, PEPE, and NEIRO were among the hardest-hit tokens.

Noteworthy Meme Coins Still in Analyst Portfolios 

Although the meme coin sector has been hit especially hard, some prominent figures in the cryptocurrency community, including Deutscher, still maintain portfolios that include meme coins. Deutscher mentioned holding SPX and POPCAT, both part of the “Murad Memecoin List.” This list, developed by former Goldman Sachs analyst Murad Mahmudov, gained attention during his “Memecoin Super-Cycle” discussion at the TOKEN2049 event in Singapore.

While the broader market remains under pressure, Deutscher’s analysis suggests potential upward momentum for selected meme coins. However, the crypto community remains cautious as the Tether investigation rumors add another layer of uncertainty to an already turbulent market.