Dogecoin and Shiba Inu face off

Bloomberg’s senior commodities strategist Mike McGlone says that the speculative rally in meme cryptocurrencies like Dogecoin and Shiba Inu last year “indicates the excesses in cryptocurrencies that are set to be phased out in 2022.”

In a report Posted on January 5, McGlone said that the prospects for an interest rate hike by the United States Federal Reserve (Fed) could put pressure on the broad cryptocurrency market and possibly collapse some of the 16,000 existing digital currencies. :

“Shiba Inu en 2H [segunda mitad de 2021] and Dogecoin in 1H [primera mitad de 2021] they are examples of speculative currencies best ranked as fun for players on an unprecedented 24/7 global scale. “

He spoke when the Fed advertisement plans on Wednesday to raise its benchmark interest rate to 1% in 2022. Three more hikes will come in 2023, and another two the following year, all in an effort to fight inflation.

The decision came earlier than expected and has made risky assets like stocks and cryptocurrencies plummet. Bitcoin fell to a low of around $ 41,100 on Friday, down 10% from 48 hours earlier. Ethereum fell more than 15% to $ 3,200 during the same period.

Dogecoin and Shiba Inu, both created as satirical online currencies, have fallen much faster and stronger than BTC and ETH. DOGE is down 79% from its all-time high of $ 0.74 in May, and is currently trading at around 15 cents.

Shiba Inu has plummeted 67% since hitting a record high of $ 0.00008845, which is just a fraction of a penny, on Oct. 28, according to data from CoinMarketCap.

Be cautious with cryptocurrencies meme

Bob Reid, CEO of the finance firm blockchain Everest, told BeInCrypto that the Federal Reserve accelerating “its rate hike [será] bad for cryptocurrencies ”.

As interest rates rise, he said, top conservative investors, who had started embracing digital assets, they will probably “return to more stable and secure investment options.”

McGlone, the Bloomberg analyst, cautioned that:

“Trading between mostly speculative cryptocurrencies competing with Bitcoin, Ethereum and Tether (USDT) is a pattern that should instill caution in investors.”

He had the Litecoin and XRP examples in mind when he spoke. The two were kicked out of the five most valuable cryptocurrencies for “dog coins” like Dogecoin and Shiba Inu. taking advantage of the euphoria of 2021 meme assets.

Since then, both DOGE and SHIB have dropped out of the top 10, but:

“This fight is enduring for position among the major cryptocurrencies, often fueled by hype and speculation, leading us to see most of those rushing to the top in fear.”

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Dogecoin and Shiba Inu face off

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