Why Is Dogecoin And Shiba Inu Price Struggling Today?

The Dogecoin and Shiba Inu prices are struggling to sustain any rally to the upside, sparking bearish sentiments towards the foremost meme coins. These meme coins are struggling due to macro factors, which are typically bearish for risk assets like Dogecoin and Shiba Inu. 

Why Dogecoin And Shiba Inu Prices Are Struggling

CoinMarketCap data shows that Dogecoin and Shiba Inu are struggling to bounce from their current price levels, having witnessed significant downward pressure these past few weeks. Crypto analyst Unipcs, aka ‘Bonk Guy,’ provided insights into why the foremost meme coins are currently struggling. 

In an X post, he highlighted the “bad” CPI and PPI data, and Donald Trump threatened to implement more tariffs, which are bearish for the Dogecoin and Shiba Inu prices. The US CPI data showed that inflation rose to 3% in January, higher than expectations. Similarly, the PPI data showed that inflation rose to 3.5% in January, higher than Wall Street’s expectations. 

The US CPI and PPI data coming in higher than expectations is specifically bearish for Dogecoin and Shiba Inu prices because the US Federal Reserve is unlikely to adopt a quantitative easing (QE) policy with inflation still on the rise. This also means that the Fed will unlikely cut interest rates anytime soon, which is bearish for these risk assets, as traders and investors will be less inclined to allocate capital to them. 

Meanwhile, Donald Trump’s threat of more tariffs is another reason why DOGE and SHIB prices are struggling today. The president announced that he would implement reciprocal tariffs on countries that unfairly tax the US. This has again raised concerns about trade wars, which is bearish for these meme coins and other risk assets since such developments typically bring about economic uncertainty. 

It is worth mentioning that Trump had already announced tariffs on imports from China, Canada, and Mexico, which wiped out over $2 billion from the crypto market. Although the US, Canada, and Mexico agreed to a one-month pause on these tariffs, Dogecoin and Shiba Inu prices still struggle with global uncertainty. 

A Silver Lining For These Meme Coins

Amid these bearish macro developments, there are other factors that paint a bullish picture for Dogecoin and Shiba Inu prices. One is the US Securities and Exchange Commission’s (SEC) acknowledgment of Grayscale’s Dogecoin ETF filing. This is a positive for the foremost meme coins, especially DOGE since there is a huge possibility that the Commission will approve this investment product.

Approval of this fund could pave the way for the introduction of a Shiba Inu ETF. Moreover, the Shiba Inu price has a strong positive correlation with the Dogecoin price, so it is bound to rally as DOGE rallies to the upside on the back of these ETF developments.

Featured image from Unsplash, chart from Tradingview.com