Today, both Shiba Inu and Dogecoin prices experienced significant declines, contrasting their optimistic beginning to the week. The cause behind this decrease is primarily due to broader economic factors that indicate a gloomy perspective for these digital currencies.
Why The Shiba Inu And Dogecoin Prices Crashed Today
As an analyst, I’ve observed a significant drop – more than 10% – in the prices of Shiba Inu and Dogecoin today. This shift appears to be linked with the recent disclosure of the JOLTS job openings and ISM Services PMI data. Specifically, the JOLTS job openings for November 2024 surpassed expectations, reaching a robust 8.09 million.
The Institute for Supply Management (ISM) Services PMI unexpectedly increased in December, reaching 54.1%. This marks the sixth consecutive month of growth. Although these numbers indicate a robust US economy, they imply a gloomy forecast for risky assets such as cryptocurrencies, which may explain the recent drops in Shiba Inu and Dogecoin prices.
Given these financial statistics, it seems unlikely that the U.S. Federal Reserve would consider lowering interest rates and instead might opt to maintain them as they are. According to CME FedWatch data, there’s now a 95.2% chance that the Fed will choose to keep rates unchanged at its upcoming FOMC meeting following the publication of these economic figures.
There’s a growing pessimism among investors due to the expectation that the Federal Reserve will maintain interest rates unchanged. This bearish feeling has triggered a chain reaction of selling in the cryptocurrency market, affecting coins like Shiba Inu, Dogecoin, and even Bitcoin. Notably, Bitcoin’s price dipped from approximately $101,000 to as low as $96,000 after the release of these economic figures.
Given their close ties with Bitcoin’s price movement, it was likely that both Shiba Inu and Dogecoin would experience a drop in value. Should Bitcoin continue to have pullbacks, these meme coins could potentially face additional sell-offs as well.
Some Positives For The Meme Coins
Regardless of the recent drop in prices, there are still some favorable aspects for Shiba Inu and Dogecoin. On the fundamental side, Donald Trump’s inauguration is drawing near, with him taking office as the U.S. President on January 20th. This could lead to a bullish trend for these popular meme coins, considering Trump’s supportive stance towards cryptocurrencies.
Trump has recently expressed that current interest rates are excessively high in light of rising inflation, hinting that the incoming president could potentially urge the Federal Reserve to lower rates. This indication is certainly positive news for Shiba Inu and Dogecoin prices. Furthermore, Elon Musk’s Department of Government Efficiency (D.O.G.E) is set to be established soon, which undoubtedly boosts optimism surrounding Dogecoin.
According to a technical analysis viewpoint, crypto expert Master Kenobi expressed a bullish forecast for Dogecoin’s price, anticipating it to hit an all-time high once Trump assumes office. Similarly, the Shiba Inu coin is likely to mirror this trend due to their strong connection as meme coins.
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2025-01-08 23:11