The Shiba Inu and Dogecoin prices have suffered double-digit losses today, having started the week on a positive note. This price drop has occurred thanks to macroeconomic factors, which present a bearish outlook for these coins.
Why The Shiba Inu And Dogecoin Prices Crashed Today
CoinMarketCap data shows that the Shiba Inu and Dogecoin prices have crashed over 10% today. This development came following the release of the JOLTS job openings and ISM Services PMI data. The JOLTS job openings came in stronger than expected, rising to 8.09 million for November 2024.
The ISM Services PMI also came in stronger than expected, rising to 54.1% in December, marking the sixth month of expansion. While these figures suggest the US economy is healthy, they present a bearish outlook for risk assets like cryptocurrencies, which is why the Shiba Inu and Dogecoin prices crashed.
With such economic figures, the US Federal Reserve could feel less motivated to cut interest rates and instead keep them steady. The CME FedWatch data shows that the probability of the Fed keeping rates unchanged at its next FOMC meeting rose to 95.2% following the release of these economic data.
The likelihood of the Fed keeping interest rates steady has sparked a bearish sentiment among investors, which led to a wave of sell-offs in the crypto market, with Shiba Inu and Dogecoin also caught in the mix. It is worth mentioning that the Bitcoin price also dropped from around $101,000 to as low as $96,000 following the release of these economic figures.
As such, the Shiba Inu and Dogecoin prices were bound to drop, given their strong positive price correlations to the flagship crypto. These meme coins are still at risk of further sell-offs if the Bitcoin price suffers more pullbacks.
Some Positives For The Meme Coins
Despite the recent crash, there are still some positives for the Shiba Inu and Dogecoin prices. On the fundamentals side, Donald Trump’s inauguration is fast approaching, with the US president-elect set to take office on January 20. This presents a bullish outlook for the foremost meme coins, given Trump’s pro-crypto stance.
Trump recently stated that the interest rates are too high amid the growing inflation. This suggests that the incoming president might pressure the Fed to cut rates, which is undoubtedly bullish for the Shiba Inu and Dogecoin prices. Meanwhile, Musk’s Department of Government Efficiency (D.O.G.E) will finally come to life, which is particularly bullish for Dogecoin.
From a technical analysis perspective, crypto analyst Master Kenobi provided a bullish outlook for the Dogecoin price, predicting it would reach a new high once Trump takes office. The Shiba Inu price is also expected to follow suit, given the strong price correlation between these meme coins.
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