Why did XRP, Dogecoin, and Shiba Inu drop today?
Yesterday, cryptocurrencies were soaring, but today they fell back. Why is that? It turns out the Federal Reserve is about to hold its last meeting of the year and may lower interest rates by 25 basis points. By Wednesday at 11:53 AM, Bitcoin might be around $104,170.
Looking at other coins, XRP, the third largest in the world, has fallen more than 5% since yesterday afternoon. Dogecoin and Shiba Inu have also dropped 4.3% and 4.6%, respectively. Ah, it really is a break time.
Speaking of which, Bitcoin has been quite strong this week, rising significantly. This all comes from President Trump, who said he wants to create a strategic Bitcoin reserve, similar to the Strategic Petroleum Reserve. A strategic reserve means storing some resources that can be useful in critical times. The government currently holds 200,000 Bitcoins, worth $21 billion, which might just be the beginning of this reserve.
There's also something about MicroStrategy, the data company founded by Michael Saylor, a major Bitcoin holder, which has now entered the NASDAQ 100 index.
However, today traders might think the rise is about done and sell off early, especially since the Federal Reserve is having a meeting. Everyone is guessing that the Fed will lower interest rates, but if the Fed suddenly changes its tone, citing a strong labor market and high inflation, and Trump's tariffs could drive inflation even higher, then the Fed might not lower rates after all. If that happens, lowering rates next year will be difficult, and both Bitcoin and other cryptocurrencies are banking on rate cuts to rise.
For the next layout direction, I will guide everyone to aim for the lucrative opportunities in altcoins, especially those with great potential, with expected growth of more than 10 times being no problem. If you want to make big money in a bull market, like and comment to join me in laying out the entire bull market!
