Shiba Inu and Dogecoin Prices Experience Significant Decline
Both Shiba Inu and Dogecoin have encountered substantial price declines, losing more than ten percent of their value. Although the week began on a promising note, macroeconomic factors have influenced a bearish trend for these popular cryptocurrencies.
Understanding the Sudden Decline in Shiba Inu and Dogecoin Prices
Data from CoinMarketCap reveals that the value of Shiba Inu and Dogecoin plummeted by over 10% today. This downturn followed the release of crucial economic indicators such as the JOLTS job openings report and the ISM Services PMI data. The JOLTS job openings exceeded expectations, climbing to 8.09 million for November 2024.
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Similarly, the ISM Services PMI also surpassed predictions, rising to 54.1% in December, marking six consecutive months of growth. While these figures reflect the robustness of the U.S. economy, they also indicate a bearish outlook for riskier investments like cryptocurrencies, explaining the decline in Shiba Inu and Dogecoin prices.
The strong economic data suggests that the U.S. Federal Reserve might feel less inclined to lower interest rates, preferring to maintain them. According to CME FedWatch data, the probability of the Fed keeping rates unchanged at its next Federal Open Market Committee (FOMC) meeting increased to 95.2% after the release of these figures.
This likelihood of stable interest rates has fueled negative sentiments among investors, triggering widespread sell-offs in the crypto market. Consequently, Shiba Inu and Dogecoin were not immune to this trend. It’s noteworthy that Bitcoin’s price also fell from approximately $101,000 to as low as $96,000 in response to the economic data.
Given Shiba Inu and Dogecoin’s strong positive correlation with Bitcoin, their prices were expected to decline. These meme coins remain susceptible to further sell-offs if Bitcoin experiences additional pullbacks.
Potential Upsides for Shiba Inu and Dogecoin
Despite the recent downturn, there are potential positives for Shiba Inu and Dogecoin. On the fundamental side, the upcoming inauguration of Donald Trump as the U.S. president on January 20 brings a bullish outlook for these meme coins, considering Trump’s favorable stance toward cryptocurrencies.
Trump has recently expressed that interest rates are excessively high amidst rising inflation, indicating that he might urge the Federal Reserve to reduce rates, which could be advantageous for Shiba Inu and Dogecoin. Additionally, the establishment of Musk’s Department of Government Efficiency (D.O.G.E) is particularly promising for Dogecoin.
From a technical analysis standpoint, crypto analyst Master Kenobi has forecasted a bullish scenario for Dogecoin prices, suggesting they could reach new highs once Trump assumes office. The Shiba Inu price is also anticipated to follow this trend due to its strong price correlation with Dogecoin.
In conclusion, while Shiba Inu and Dogecoin have experienced significant losses, potential factors could drive their recovery. Investors should closely monitor upcoming economic trends and political developments to make informed decisions regarding these cryptocurrencies.
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