The prices of Dogecoin and Shiba Inu also dropped in their wake the latest rising trendresulting in significant value gains. This price crash is primarily caused by current macro environment and market uncertainty, which does not favor risky assets such as these meme coins.
Dogecoin And Shiba Inu Price Risk Amid Market Uncertainty
Dogecoin and Shiba Inu prices fell amid market uncertainty, thanks largely to the upside. The US jobs report released on October 4 suggested that the US economy is healthier than many thought. However, this has raised concerns that the Federal Reserve may not be in a rush to cut interest rates.
I The Fed lowered interest rates by 50 basis points (bps) at its September FOMC meeting following concerns that the US economy could slip into recession if the US Central Bank does not act quickly and implement monetary easing policy. However, the latest jobs report showed that the labor market is strong, contrary to experts’ views.
Considering that the US economy is healthier than previously thought, the Fed may not cut rates as the markets expected. I the market liked it The Fed cuts rates by an additional 50 bps November FOMC meetingwhich would be good for risky assets like Dogecoin and Shiba Inu.
However, i CME FedWatch data it shows that the probability of a 50 bps rate cut has since dropped to 0% after the release of the job report. Instead, they are likely to favor a rate cut of only 25 bps. This is not good for Dogecoin and the value of Shiba Inu, as investors may reduce their appetite again if the Fed does not cut interest rates by 50 bps as previously intended.
Political Dissonance and US Elections
Political tension and the upcoming US election also contributed to the decline in the price of Dogecoin and Shiba Inu. I The Isreal-Iran conflict has erupted a wave of selling as investors are skeptical about allocating so much money to these risky assets, given how much they could be affected if growing tensions in the Middle East turn into full-scale war.
Israel has threatened to retaliate against the Iranian missile attack on October 1. According to this, market participants fear that this retaliatory attack could come at any time.
The present, the future The US presidential election and bring market uncertainty, which has increased again as the November 5 election approaches. Although the Polymarket issues at the moment Donald Trumpwho is pro-crypto, investors prefer to stay on the sidelines until after the election.
Therefore, the Dogecoin and Shiba Inu prices they are currently low, 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 more than 5% in the last 24 hours, while Shiba Inu’s price is trading at around $0.000017, down more than 7% over the period, according to the report. data from CoinMarketCap.
The featured image was created with Dall.E, a chart from Tradingview.com
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