Shiba Inu (SHIB), Dogecoin (DOGE) prices plummet, who is the mastermind behind the over 10% drop?
Shiba Inu coin and Dogecoin saw their prices crash today, plummeting over 10%. The root cause is the release of JOLTS job openings and ISM services PMI data.
JOLTS job openings exceeded expectations, rising to 8.09 million in November 2024;
ISM services PMI was also better than expected, rising to 54.1% in December, expanding for six consecutive months.
Although this data shows that the U.S. economy is quite healthy, it is not friendly to risk assets like cryptocurrencies, which is why Shiba Inu coin and Dogecoin have dropped so badly.
With such economic data supporting it, the Federal Reserve's willingness to cut interest rates is likely weak, and it will probably maintain the current rates. Following the data release, the probability of the Fed maintaining interest rates unchanged at the next FOMC meeting soared to 95.2%.
Investors, seeing that the Fed is staying put, are overwhelmed by pessimism, triggering a wave of sell-offs in the cryptocurrency market, which also affected Shiba Inu coin and Dogecoin. By the way, after the data was released, Bitcoin's price nosedived from around $101,000 to $92,000.
On the fundamentals, Donald Trump's inauguration is just around the corner, set for January 20.
He has always supported cryptocurrencies, which bodes well for Shiba and Doge, two leading meme coins.
Recently, Trump criticized the high interest rates during rising inflation, and it seems the new president will press the Fed to cut rates, which will surely benefit Shiba Inu coin and Dogecoin.
Elon Musk's "Department of Efficiency" (DOGE) is about to officially start, and Dogecoin is set to gain.
