On July 8, the majority of altcoins were seen in the red, including BRETT, PEPE, WIF and JUP, which fell over 10% as Bitcoin, the world’s largest cryptocurrency, dropped 4% in the past day.

At the time of writing, BRETT, the meme coin inspired by a character from the “Boy’s Club” comic, was still down 8% in the last 24 hours and 30% in the last 7 days. Over the last day, the crypto asset’s trading volume was hovering around $49.1 million. Moreover, the meme coin’s market cap has also fallen to $1.12 billion, bringing it down to the 62nd largest cryptocurrency per CoinMarketCap (CMC).

Ethereum-based meme coin PEPE topped as the biggest loser on Monday morning, with a drop of 12% over the past day. Over the last week, the meme coin has also dropped by a major 30%. At press time, the meme coin inspired by the famous green frog meme had a daily trading volume of $768 million, while its market cap had fallen to $3.47 billion and now ranks as 24th among the top 100 largest cryptocurrencies.

Meanwhile, Solana-based meme coin WIF was still down 11% over the last day, exchanging hands at $1.66 at the time of publication. Over the past week, the token also precipitated under 27%. Meanwhile, the dog-themed meme coin wearing a knitted pink hat has experienced a 14% rise in its daily trading volume, hovering around $468 million. Its market cap had fallen to $1.6 billion.

Jupiter (JUP), a Solana-based decentralized exchange (DEX) aggregator, was down 10% in the last 24 hours and 16% over the past week. The crypto assets’ daily trading volume stood flat at $109 million, while its market cap had fallen under $1 billion.

The sharp decline in these altcoins was triggered by a decrease in Bitcoin’s value, which fell 4% in the past day to $55,676 on Monday morning. Its 24-hour lows and highs were recorded as $54,424 and $57,863, respectively. The crypto asset had fallen 12% over the last 7 days.

Bitcoin’s price drop coincided with the German government transferring 700 BTC, valued at approximately $40.47 million, to crypto exchanges. This move is part of an ongoing trend, as the German government has consistently sold its Bitcoin holdings since June.

According to Lookonchain, a blockchain data analytics platform, the German government transferred 700 BTC to exchanges recently, sparking mixed reactions on crypto Twitter, with some predicting a potential crash to the $40,000 region.

Adding to the market’s volatility, Mt. Gox transferred 47,229 BTC worth $2.7 billion to an unknown wallet, further influencing Bitcoin’s price decline.

Mt. Gox, once the leading cryptocurrency exchange before its collapse in 2014, is set to begin repaying its creditors. This has raised fears that the influx of Bitcoin into the market could further depress prices as creditors may opt to sell their recovered funds immediately.

As of July 5, the German government holds 41,226 BTC valued at $2.28 billion, while the U.S. government possesses 213,297 BTC worth $11.72 billion. Additionally, Mt. Gox controls 141,687 BTC, amounting to $7.78 billion.

The overall decline in the altcoin market is closely linked to Bitcoin’s performance due to its significant influence and market dominance. When Bitcoin experiences substantial price drops, it often creates a ripple effect across the cryptocurrency market, leading to widespread declines in altcoin values as investor confidence wanes and market sentiment turns bearish.

Despite the current downturn in altcoins and the broader crypto market, some analysts remain optimistic about the potential for an altcoin season to commence soon.