Both Dogecoin and Shiba Inu prices saw a bullish reversal in the last day, posting notable gains in the process. With no clear development from either camp on what could drive the recovery, broader market expectations may be the answer.
Dogecoin and Shiba Inu Respond to Bitcoin
The current recovery of the cryptocurrency market is being stimulated by the leading cryptocurrency, Bitcoin, which is not out of the ordinary. In the last day, Bitcoin managed to break multiple resistance points and rose above $71,000 in the process. This Bitcoin recovery has sparked renewed positive sentiment among cryptocurrency investors, spreading to the likes of Dogecoin and Shiba Inu.
Since Bitcoin's price rebound is the main driver behind the recent day's rise in Dogecoin and Shiba Inu prices, the factors driving Bitcoin's price are ultimately the reason why these meme coins are rising as well. This recovery is partly due to positive news coming from the United States.
Latest JOLTS report on US labor markets Offers That the market is starting to stabilize again. Apparently, the jobs-to-workers ratio has now fallen to a three-year low of 1.2, and the last time it reached this low was in 2021, when the last cryptocurrency bull market occurred. This comes as layoff numbers decline and job abandonment rates among employees remain stable.
Investor sentiment has also exploded during this time, with more money flowing into assets like Bitcoin and Ethereum. According to a CoinShares report, digital asset investment products saw inflows of $185 million in the past week alone, indicating bullish sentiment not only among retail investors but among institutional investors as well. All of this has created a catalyst for Bitcoin prices to rise, and altcoins like Shiba Inu and Dogeocin have surged in response.
SHIB gains outperform DOGE
Although both Dogecoin and Shiba Inu made gains on the final day, the latter outperformed the former by a large margin. Dogecoin numbers came in with a 3.7% gain over a 24-hour period, according to data from CoinGeco. This pushed its price above $0.16, raising its market capitalization to $23.6 billion.
Meanwhile, the Shiba Inu saw double-digit gains, recording a total gain of 10.2%, as CoinGecko reports Data Offers. As a result of this recovery, the meme has now cleared the $0.000026 resistance, taking its market capitalization to over $15.4 billion.
However, both major coins have fallen behind investors' new favorite, FLOKI, which is up more than 24% in the same time period. Other cryptocurrencies such as PEPE, BONK, and Dogwifat also saw a rise of 2.7%, 7.9%, and 9.7%, respectively.
Featured image created with Dall.E, chart from Tradingview.com
