Dogecoin and Shiba Inu are having a great day! After a period of sideways trading, these meme coins are seeing a significant price increase. Let’s dive into why.
The Fed’s Role
The recent surge follows the US Federal Reserve’s decision to hold interest rates steady. While this usually isn’t great news for crypto, Fed Chair Jerome Powell’s comments painted a more optimistic picture. He highlighted the positive state of the US economy and decreasing inflation. The only major concern he mentioned? Trump-era tariffs.
Interestingly, tariffs seem to be good news for Dogecoin and Shiba Inu. Investors are viewing Bitcoin as a safe haven against tariff uncertainty, and this is boosting related cryptos. Last week, Bitcoin hit almost $97,000 amidst tariff worries, and now, with the Fed’s announcement and Powell’s speech (which sent Bitcoin soaring to nearly $99,000!), DOGE and SHIB are following suit.
Trade Talks and Tariff Optimism
Adding fuel to the fire are upcoming US-China trade talks scheduled for May 10th. The ongoing trade war and its tariffs have hurt the market, but the prospect of a potential agreement is generating excitement and boosting investor confidence in meme coins and the broader crypto market.
Further bolstering the positive sentiment is US Treasury Secretary Scott Bessent’s announcement that the US is close to trade deals with 17 key partners. This is seen as a positive development that could mitigate the negative effects of the Trump-era tariffs.
Price Predictions: To the Moon?
Analyst Trader Tardigrade believes Dogecoin could hit $0.30 based on a “Diamond Bottom” reversal pattern he sees on the daily chart. Another analyst, Master Kenobi, is even more bullish, suggesting Dogecoin could reach $1 if Bitcoin keeps its upward momentum.
