Dogecoin and Shiba Inu are on the rise, exciting investors after a rough week of sell-offs. What’s driving this sudden surge?
The Fed’s Influence
The Federal Reserve’s decision to hold interest rates steady, while generally bearish for crypto, unexpectedly gave the market a boost. Fed Chair Jerome Powell’s comments after the meeting were key. While he didn’t signal immediate rate cuts, he did say banks could offer crypto services if they managed the risks properly. This subtle shift towards crypto adoption sent positive signals to investors.
Morgan Stanley’s exploration of crypto services, announced recently, further amplified this positive sentiment. The timing of Powell’s speech and Morgan Stanley’s announcement created a perfect storm for bullish momentum.
Bitcoin’s Role
Bitcoin’s price jump above $105,000 also played a significant role. Dogecoin and Shiba Inu often move in tandem with Bitcoin, so Bitcoin’s rally helped lift them as well. One analyst, Kevin Capital, even suggested Dogecoin is poised for a major breakout once Bitcoin makes its next big move.
Future Predictions
Analysts are offering various predictions for Dogecoin and Shiba Inu.
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Dogecoin: Trader Tardigrade on X (formerly Twitter) sees a potential 6-month rally similar to the 2021 bull run, based on a comparable price structure. He even predicts a possible price surge to $2 based on chart analysis.
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Shiba Inu: Investing Haven is bullish on Shiba Inu, highlighting its resilience during the recent market downturn and pointing to a bullish chart pattern suggesting further gains.
In short, a combination of factors – the Fed’s more crypto-friendly stance, Morgan Stanley’s moves, Bitcoin’s price increase, and positive analyst predictions – are contributing to the current price rise of Dogecoin and Shiba Inu. Whether this upward trend continues remains to be seen.
