In a dramatic shift, Dogecoin (DOGE) and Shiba Inu (SHIB) have recently experienced significant price declines, with Dogecoin trading at $0.107 (down over 5%) and Shiba Inu at $0.000017 (down over 7%) as of October 8, 2024 [39459fb7]. This downturn follows a period of growth where Dogecoin surged by 10% and Shiba Inu jumped 22%, fueled by favorable macroeconomic developments and bullish fundamentals earlier in the month [9927fc7c].
The recent crash can be attributed to a combination of macroeconomic factors and market uncertainty. A job report released on October 4 indicated a healthier economy, which raised concerns about the Federal Reserve's potential interest rate cuts. Although the Fed had cut rates by 50 basis points in September, the latest job data has reduced the odds of further cuts to nearly 0% [39459fb7].
Additionally, geopolitical tensions, particularly the ongoing conflict between Israel and Iran, alongside the upcoming US elections, have contributed to market apprehension, impacting investor sentiment across the board [39459fb7].
Despite the recent downturn, on-chain analytics had previously shown a surge in Dogecoin's network activity, with 28,000 new addresses created recently, indicating heightened interest in the cryptocurrency [d2adf2b8]. Furthermore, the QED Protocol's partnership with Nexus to develop a zero-knowledge virtual machine on the Dogecoin network was expected to enhance its technological capabilities [9927fc7c].
Crypto analyst Ali Martinez had previously predicted that Dogecoin could reach $0.150, while Shiba Inu was preparing to launch its SHI stablecoin, which was anticipated to attract more investors [9927fc7c]. However, the current market conditions have overshadowed these positive developments, leading to a cautious outlook for both cryptocurrencies [39459fb7].