Meme Coin Market Reverses Santa Claus Rally Gains, Fartcoin Tumbles 17%

The cryptocurrency market witnessed significant declines in meme coin prices on Thursday, reversing much of the gains achieved during the recent Santa Claus rally on Christmas Eve.

Meme coin prices took a hit on Thursday, reversing some of the gains made during the recent Santa Claus rally on Christmas Eve.

Fartcoin, a leading Solana ecosystem meme coin, dropped 16.8%. Other notable declines included Floki (4.5%), Shiba Inu (6.5%), Brett, Mog Coin, and Popcat.

The broader decline in meme coins can be attributed to a risk-off sentiment within the crypto market, exacerbated by a downturn in Bitcoin prices to $95,000 and a reduction in the overall market cap to $3.32 trillion. Traditionally, altcoins, particularly the highly volatile meme coins, often see pronounced price drops when Bitcoin falters.

The decrease in meme coin prices was also supported by a contraction in liquidity within the crypto sector, consistent with reduced trading activity during the holiday period. Reports indicate that trading volumes for several cryptocurrencies have dwindled as many investors and traders remain inactive. Specifically, Bitcoin’s 24-hour trading volume plummeted to $33.96 million, marking the lowest daily figure since November 3rd.

In parallel, other meme coins likewise experienced reduced trading volumes. For instance, Floki recorded a 24-hour volume of $238 million, marking its lowest in over a month, while Fartcoin’s volume was $187 million, and Shiba Inu’s was $576 million. These reduced trading activities often lead to heightened price volatility.

The broader market also saw a shift in sentiment as the Federal Reserve offered only two interest rate cuts in 2025, adopting a less accommodating stance. This has prompted bond yields to rise — 10-year yields increased to 4.63%, with 30-year and 5-year yields climbing to 4.8% and 4.50%, respectively. Rising bond yields typically exert downward pressure on both cryptocurrency valuations and stock prices.

The market dynamics reveal a tendency among investors to lock in profits following substantial yearly gains, as evidenced by Floki reaching a peak price of $0.0002885 in November, representing a 200% surge from its August lows, and Shiba Inu attaining $0.000033.