Dogecoin and Shiba Inu prices collapsed again after that Recent uptrendResulting in significant price gains. These price collapses are primarily due to… Current macro environment And uncertainty in the market, which does not favor risky assets like these meme currencies.
Dogecoin and Shiba Inu prices crash amid market uncertainty
Dogecoin and Shiba Inu Prices have collapsed amid market uncertainty, thanks primarily to the macro side. The US jobs report released on October 4 indicated that the US economy is healthier than many imagined. However, this has raised concerns that the Fed may not be in a rush to cut interest rates.
the The Federal Reserve lowered interest rates by 50 basis points at the Federal Open Market Committee meeting in September after concerns that the US economy could head into recession if the US central bank did not act quickly and implement monetary easing. However, the latest jobs report showed that the labor market is strong, contrary to experts’ opinions.
Given that the US economy is healthier than previously thought, the Fed may not cut interest rates as markets expected. the The market was favoured The Fed cut interest rates by an additional 50 basis points November FOMC meetingWhich could have been positive for risk assets like Dogecoin and Shiba Inu.
However, CME FedWatch data It shows that the odds of a 50 basis point rate cut have since fallen to 0% after the jobs report. Instead, the odds favor a rate cut of just 25 basis points. This is not in favor of Dogecoin and the Shiba Inu price, as investors will likely lower their risk appetite again if the Fed does not cut interest rates by 50 basis points as previously envisaged.
Geopolitical tensions and the US elections
Geopolitical tensions and the upcoming US elections also contributed to the collapse of Dogecoin and Shiba Inu prices. the The Israeli-Iranian conflict has broken out A wave of selling as investors question allocating much capital to these risky assets, considering how they would be affected if rising tensions in the Middle East turn into all-out war.
Israel threatened to respond to Iranian missile attacks on October 1. In line with this, market participants fear that these retaliatory attacks could occur at any moment.
Meanwhile, coming US presidential elections It has also led to market uncertainty, which has worsened as the November 5 election approaches. in spite of Polymarket odds Currently valid Donald Trumpa crypto supporter, investors are choosing to remain on the sidelines until after the election.
Therefore Dogecoin and Shiba Inu prices The trend is currently down, and these external factors will likely continue to cast a dark cloud over the market in the short term.
At the time of writing, Dogecoin is trading at around $0.107, down over 5% over the past 24 hours, while the price of a Shiba Inu is trading at around $0.000017, down over 7% over this period, according to Data From Coin Market Cap.
Featured image created with Dall.E, chart from Tradingview.com