Shiba Inu (SHIB), a popular meme coin, has seen significant sell-offs this week due to news from the Federal Reserve. The token fell 22.7% over the last seven days of trading as of Friday’s close, according to data from S&P Global Market Intelligence. However, it rebounded 0.5% in the next 24 hours.
The Fed’s rate cut announcement and its revised outlook for 2025 have contributed to the sell-off. The central bank now expects only two 25-basis-point cuts next year, down from four previously anticipated cuts. This more hawkish forecast has led to increased interest rate concerns among investors.
As a result, cryptocurrencies and stocks have seen significant declines, with high-risk investments taking the hardest hit. However, Shiba Inu has still managed to post a 108% gain year-to-date.
The impact of the Fed’s new outlook on Shiba Inu’s performance is uncertain. Some investors hope that the incoming Trump administration will reduce regulations and support the cryptocurrency industry. Nevertheless, macroeconomic and political factors are expected to play a significant role in shaping its future trajectory.
Source: https://www.fool.com/investing/2024/12/21/why-shiba-inu-is-sinking-this-week