Most of the major cryptocurrencies, including Bitcoin Cash , have reached important fundamental support levels, signalling an oversold rebound.
Over the last three days, the price of Shiba-inu has been continuously declining, with no signs of recovery. On the other hand, the crypto market is currently pessimistic, meaning that the coin’s value would continue to decline in the near future.
The meme-community coin’s has helped it reach new highs, but it is in desperate need of a major catalyst right now. As a result of the ongoing crypto-crisis, meme-coins have taken a beating.
Meme coins are suffering the purge : WIll Dogecoin Go up ?
Last year’s speculative boom in meme coins like Dogecoin and Shiba Inu, according to Bloomberg senior commodity economist Mike McGlone, “indicates the excesses in crypto that are ripe for purging in 2022.”
According to McGlone, the fear of a rate hike by the US Federal Reserve may put pressure on the entire crypto market, perhaps crashing some of the 16,000 digital currencies already in circulation.
In 2H and 1H, McGlone jokes, “Shiba Inu and Dogecoin are examples of speculative hype-coins best categorised as entertainment for gamblers on an unprecedented 24/7 global scale.”
The Federal Reserve revealed plans to hike its benchmark interest rate to 1% by 2022 on Wednesday. Three further raises will be adopted in 2023 to combat inflation, followed by two more the following year.
The decision came sooner than expected, causing risk assets such as shares and bitcoin to plummet. On Friday, Bitcoin fell to a low of around $41,100, down 10% from 48 hours earlier. During the same time span, Ethereum lost more than 15% to $3,200.
Shiba Inu has plunged 67 percent from hitting a record high of $0.00008845 — a quarter of a penny — on Oct. 28, according to Coinmarketcap data.
Proceed with caution: you will be bombarded by meme coins
In an interview with BeInCrypto, Bob Reid, CEO of blockchain financial firm Everest, stated that the Federal Reserve’s rate hike will be “bad for cryptocurrencies.”
When interest rates rise, conservative mainstream investors who have begun to adopt digital assets will likely “return to more safe and secure investing options,” he said.
Bloomberg analyst McGlone said, “The pattern of trading among primarily speculative crypto currencies competing with bitcoin, ethereum, and tether (USDT) should urge investor prudence.”
In his speech, he used litecoin and XRP as examples. “Dog coins” like dogecoin and shiba inu were driven out of the top five most valuable cryptocurrencies by the meme asset bubble of 2021.
“The constant jockeying for position among top cryptos, which is frequently fueled by hype and conjecture,” McGlone added, “leads us to consider most that rise quickly to the top with caution.”
Conclusion
Dogecoin, Shiba Inu, and other currencies associated more with online jokes than actual software applications have been pummelling more than industry originals.
Doge has lost more than 80% from it’s all-time high of 74 cents in May, according to Messari’s study, while Shiba has dropped more than 65 percent from it’s all-time high fractions of a penny in late October.
The number of transactions has decreased in recent years, with millions rather than billions being recorded. The jokes that initially persuaded a wave of mostly retail day traders to buy coins on the whim of the moment have turned sombre.