The meme coins, Dogecoin and Shiba Inu, have been on a rollercoaster ride lately. After a recent surge in price, they’ve taken a tumble, leaving investors wondering what’s going on.
The Macro Environment: A Big Factor
The main culprit behind the price drop is the current economic climate. The US economy seems to be doing better than expected, which has investors worried that the Federal Reserve (the US central bank) might not cut interest rates as much as they hoped.
The Fed has been trying to control inflation by raising interest rates. Lowering rates would make it easier for people to borrow money and stimulate the economy. But with the economy looking strong, the Fed might not be in a hurry to cut rates. This news isn’t good for risky assets like Dogecoin and Shiba Inu, as investors tend to be more cautious when interest rates are high.
Other Factors Adding to the Uncertainty
It’s not just the economy that’s causing the market jitters. Geopolitical tensions and the upcoming US presidential election are also playing a role.
The conflict between Israel and Iran has made investors nervous. They’re worried that the situation could escalate into a full-blown war, which would have a significant impact on the global economy.
The US presidential election is also a source of uncertainty. While some investors are optimistic about a pro-crypto candidate, many are choosing to wait and see what happens before making any big moves.
The Bottom Line: A Bearish Market for Now
With all these factors at play, the outlook for Dogecoin and Shiba Inu is currently bearish. It’s likely that the market will remain volatile in the short term.
At the time of writing, Dogecoin is down over 5% in the past 24 hours, trading around $0.107. Shiba Inu is down over 7%, trading around $0.000017.
