#doge⚡ #SHIBA✅🚀
Why did cryptocurrencies XRP, Dogecoin, and Shiba Inu drop today!
After a surge in cryptocurrency yesterday, today it has dropped back. The reason could be that the Federal Reserve is about to hold its last meeting of the year, potentially lowering interest rates by 25 basis points. As of 11:53 AM Eastern Time on Wednesday, Bitcoin is selling for about $104,170.
Looking at the third-ranked cryptocurrency XRP, its price has dropped over 5% since yesterday afternoon. Those meme tokens, like Dogecoin and Shiba Inu, also fell by 4.3% and 4.6%, respectively.
Speaking of cryptocurrencies, especially Bitcoin, there has been a rebound this week. Newly elected President Trump said he wants to establish a strategic Bitcoin reserve similar to the U.S. Strategic Petroleum Reserve. A strategic reserve is essentially storing some resources, like commodities, to be used when needed or to regulate the market.
It is still unclear how this Bitcoin reserve will operate, but the government already holds about 200,000 Bitcoins worth $21 billion, which could be the beginning of a strategic reserve.
Michael Saylor's data company MicroStrategy is the largest public holder of Bitcoin and has now joined the NASDAQ 100 index. With these developments, cryptocurrencies broke through $107,000 yesterday.
However, early this morning, traders might feel that the gains are sufficient and began to cash out because they know the Federal Reserve is having a meeting. Before the meeting, everyone expects the Federal Reserve to cut rates by 25 basis points.
However, now everyone may be more concerned about the Federal Reserve's stance. After all, the labor market is still quite strong, and the inflation rate is higher than the 2% that the Federal Reserve hopes for. Additionally, Trump's tariff policy may exacerbate inflation, leading the Federal Reserve to adopt a more hawkish approach.
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