High waves and low tides: the future of Dogecoin and Shiba Inu

High waves and low tides: the future of Dogecoin and Shiba Inu

The prices of popular memecoins such as Dogecoin and Shiba Inu are experiencing a hard fall. This market deterioration can be attributed to a number of factors, led by economic uncertainty and rising geopolitical tensions. Investors are now reluctant to invest in risky assets and are looking for safer havens.

After a recent spike upwards, the value of these cryptocurrencies has plummeted again, mainly due to fears of a possible move by the Federal Reserve regarding interest rates. The October 4 U.S. jobs report showed a stronger-than-expected economy, raising questions about whether the planned interest rate cut will even happen. Markets that had hoped for a 50 basis point rate cut soon now face a drop in those expectations to almost zero chance.

Geopolitical context

Another factor affecting investor sentiment is the deteriorating situation in the Middle East. The conflict between Israel and Iran is raising fears of a potential regional escalation, contributing to massive sell-offs in risk assets. In this atmosphere, investors who have been hesitant so far are opting to exit the markets associated with cryptocurrencies and other volatile assets.

Elections and market sentiment

The upcoming US elections are also playing a significant role in the current memecoins market. Investors are reluctant to make major moves until they have a clearer picture of the political changes and their potential impact on cryptocurrencies. Although some pro-crypto candidates are coming to the fore, uncertainty about potential legislative changes is keeping many investors at bay and discouraging them from making larger investments.

The future of memecoins

Dogecoin and Shiba Inu are now under pressure from these external circumstances and are likely to continue to face volatility in the short term. Until there are significant changes in monetary policy and geopolitical stability, these memecoins look set to face continued downward pressure. Investors hoping for a bullish bias in these markets should be prepared for challenging times.

*This is not investment advice.

Coingarage Team