Bitcoin, Dogecoin, Shiba Inu Falling Drastically: Here’s Why

John Isige
Updated
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Bitcoin, Chainlink and Dogecoin Leading Crypto Upside Potential: Santiment

Highlights

  • Inflation is easing in the US but risk assets fail to gain momentum due to the lack of investor confidence.
  • Bitcoin retests $66,000 support, showing potential for a rebound in the short term.
  • Meme coins DOGE and SHIB reflect the uncertainty among investors.

The cryptocurrency market is giving back the gains accrued on Wednesday following the release of inflation data in the US. After touching $70,000 Bitcoin price lost ground to below $67,000. Many top analysts believe that if BTC slides below the $66,000 level, the downfall could continue to $64,000.

Altcoins are also in the red led by Ethereum, Solana, XRP, and more. According to CoinGecko price data, ETH is down by 4.4% to $3,450, SOL by 7% to $147, and XRP by 3% to $0.48.

Meme coins have not been spared, with Dogecoin and Shiba Inu leading the drop among major cryptos. DOGE is pushing down on support at $0.14 after abandoning a potential rally to $0.2. Shiba Inu risks sliding below the key support at $0.00002 but hovered at $0.000021 on Thursday.

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Why Is Bitcoin Falling As DOGE, SHIB Tumble

Inflation data in the US, particularly the Consumer Price Index (CPI), came in softer than expected on June 12. Bitcoin and altcoins to buy reacted bullishly after a gruesome drop to $66,000 on Tuesday.

However, the hawkish stance of the Federal Reserve following the FOMC meeting on Tuesday and Wednesday cost bulls a trip above $70,000. Pouring water on investor expectations, Jerome Powell the Fed chair said that the central bank is not comfortable with interest rate cuts at the moment.

The remarks came alongside the decision to leave the rates unchanged in the range of 5.25% and 5.5% and the revision of the interest rate cuts from the previously projected 3 to only one.

According to the members of the FOMC, the central bank has made a modest move towards an inflation target of 2% but remained adamant about cutting rates. Inflation in the US has eased from peak levels experienced in 2022 and 2023.

Powell said that he is confident with the impact of the restrictive policy adding that its sufficiency will be known in time.

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PPI Inflation Data Fails To Ignite Bitcoin Bulls

The Producer Price Index (PPI) data in the US proved that inflation is easing, after beating economists’ expectations. Slowing inflation is a good sign for risky assets like crypto and stocks.

Nevertheless, Bitcoin and crypto prices failed to regain momentum giving control back to bears. According to experts from QCP Capital, a trading company, investors seem confused over the future outlook of the market, especially with the Fed remaining hawkish regarding interest rate cuts.

The analysts are looking forward to “a rate cut in September, with the FED likely adopting a wait-and-see approach for subsequent meetings in November and December.”

On the other hand, the approval of spot Ethereum ETFs could offer a modest distraction from interest rates and possibly build a bullish macro outlook in the short-term to the long-term.

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Bottom Line

The next few days would be important for Bitcoin and altcoins. If key support areas are respected, a stronger rebound could emerge. Meme coins like Dogecoin and Shiba Inu tend to rally alongside Bitcoin and are worth watching out for.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.