Emily Walker
Today, both Shiba Inu and Dogecoin prices have faced significant declines, dropping more than 10%, despite starting the week on a positive trajectory. This downturn is attributed to macroeconomic influences that have created a negative outlook for these cryptocurrencies.
Reasons for the Decline in Shiba Inu and Dogecoin Prices
According to CoinMarketCap, today’s plunge in Shiba Inu and Dogecoin prices followed the release of the JOLTS job openings and ISM Services PMI reports, which showed unexpectedly strong results. The JOLTS job openings surged to 8.09 million for November 2024.
Additionally, the ISM Services PMI also exceeded expectations, reaching 54.1% in December, marking continuous growth for six months. Although these numbers indicate a robust US economy, they present a negative outlook for riskier assets like cryptocurrencies, leading to the drop in prices for Shiba Inu and Dogecoin.
Given these economic indicators, the US Federal Reserve may be less inclined to reduce interest rates, opting instead to maintain the current rates. The CME FedWatch data indicates that the chance of the Fed keeping rates steady in the upcoming FOMC meeting increased to 95.2% after these reports surfaced.
This certainty regarding interest rates has generated bearish sentiments among investors, prompting a selling spree in the crypto market, affecting Shiba Inu and Dogecoin as well. Notably, Bitcoin’s price also fell from around $101,000 to about $96,000 after these economic results were announced.
This correlation means that Shiba Inu and Dogecoin were likely to decline alongside Bitcoin, highlighting their vulnerability to further sell-offs should Bitcoin experience additional downturns.
Positive Indicators for Meme Coins
Despite the recent dip, there are still some hopeful signs for Shiba Inu and Dogecoin. With Donald Trump’s inauguration approaching on January 20, there is optimism for these meme coins due to Trump’s pro-cryptocurrency views.
Trump has recently commented on high-interest rates amidst rising inflation, hinting that he may urge the Fed to lower rates, which could benefit Shiba Inu and Dogecoin prices significantly. Furthermore, Musk’s initiative, the Department of Government Efficiency (D.O.G.E), is set to be realized, which is particularly promising for Dogecoin.
From a technical perspective, crypto analyst Master Kenobi has expressed a bullish forecast for Dogecoin, predicting it will hit new heights once Trump assumes the presidency. The Shiba Inu price is also anticipated to rise, given the strong relationship between these two meme coins.