In the volatile world of cryptocurrency, the whimsical PEPE token has taken a nosedive, plummeting 32% from its July zenith. This comes amid escalating apprehensions over looming U.S. tariffs — set to kick in tomorrow — that have rattled traders across the board. The memecoin’s abrupt fall is symptomatic of broader market jitters, with many investors hastily re-evaluating their positions.
The Tariff Tangle
Arthur Hayes, the former BitMEX CEO and a notable figure in crypto circles, recently liquidated his $414,000 stake in PEPE, citing macroeconomic concerns. “The impending tariff policy is a serious curveball,” Hayes stated in a recent interview. “It’s not just about PEPE or memecoins; it’s about the entire risk asset class.” The new U.S. policy, designed to levy tariffs up to 41% on goods from over 90 countries, has sent ripples through financial markets. Such policies don’t just impact traditional equities but have a palpable effect on digital currencies, especially speculative ones like PEPE. This echoes the market’s reaction when Bitcoin dipped below $115K as previous tariff orders failed to comfort investors.
Alongside PEPE, Hayes also divested from other altcoins, converting his holdings into stablecoins — a move reflecting a cautious stance amidst economic uncertainty. His actions underscore a growing sentiment among investors seeking safer harbors in times of potential turbulence.
Anatomy of a Decline
PEPE’s trajectory over the past few weeks has been anything but steady. After a commendable rally that saw it flirt with the $0.00001080 mark, the token faced a barrage of selling pressure. According to CoinDesk Research’s technical analysis, a staggering 3.26 trillion tokens exchanged hands during this sell-off, signaling a possible capitulation among traders.
The token’s price eventually stabilized near $0.00001002, with trading volumes tapering off — a potential sign of seller exhaustion. Yet, despite a minor uptick towards the session’s end, the overall mood remains bearish. “We’re seeing a classic case of market overreaction,” says crypto analyst Jenna Lin. “While the tariffs are a valid concern, the extent of the sell-off seems disproportionate.”
The Bigger Picture
It’s not just PEPE feeling the heat. The larger memecoin sector, gauged by the CoinDesk Memecoin Index (CDMEME), has shed 22.4% during the same period, marking a broader retreat. Investors, particularly those in high-risk assets, are recalibrating their strategies in light of these economic headwinds. This sentiment was also evident when XRP led market gains, even as Bitcoin neared $115K amidst souring bullish moods due to tariff concerns.
Historically, memecoins — with their playful origins and community-driven value — have been more vulnerable to external shocks, given their speculative nature. The current downturn could either be a temporary blip or a harbinger of more sustained challenges ahead. “The market’s reaction to the tariffs will be crucial,” Lin adds. “If the economic environment deteriorates further, we might see more pronounced declines.”
Uncharted Waters
As we stand on the cusp of these tariffs taking effect, the crypto market finds itself at a crossroads. With PEPE and its peers in retreat, the coming weeks will likely test the resolve of both seasoned and novice investors. Will the market rebound once the initial shock dissipates, or are we on the brink of a more significant correction?
In the end, the cryptocurrency landscape is ever-dynamic, continuously shaped by external forces and internal dynamics. For now, traders are watching closely, strategizing their next moves with an eye on potential opportunities amidst the chaos. As always in crypto, expect the unexpected.
Source
This article is based on: PEPE Sinks 32% From July High as Traders Capitulate on Tariff Jitters
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
