Dogecoin and Shiba Inu prices have significantly crashed within the last 24 hours. That is partly resulting from Jerome Powell’s speech, which painted a bearish picture for crypto assets despite the announcement of a 25 basis point (bps) rate cut. 

Why The Dogecoin And Shiba Inu Prices Crashed

The Dogecoin and Shiba Inu prices are each down over 5% within the last 24 hours. This price crash has happened despite the Federal Reserve announcing a 25 bps rate cut. One major reason for this price crash is believed to be resulting from Fed Chair Jerome Powell’s speech, which painted a bearish picture for these crypto assets. 

Powell hinted in his speech that the Fed was currently ‘hawkish’ despite the 25 bps rate cut. He also suggested that there would likely be fewer rate cuts in 2025, having already made three rate cuts this 12 months. The Fed being hawkish is bearish for the Dogecoin and Shiba Inu prices as investors turn out to be more skeptical about investing in these risk assets. 

In Dogecoin’s case, crypto analyst Kevin Capital had mentioned that the meme coin’s technical indicators were currently bearish but added that it may very well be invalidated if the Fed took a dovish stance. Nevertheless, that didn’t occur, meaning that the Dogecoin price could even plunge further, seeing as fundamentals and technicals are bearish. 

Meanwhile, Powell’s tackle the Strategic Bitcoin Reserve is one other factor that would have contributed to the worth crashes of Dogecoin and Shiba Inu. The Fed Chair mentioned that the US Central Bank shouldn’t be allowed to carry Bitcoin and shouldn’t be in search of a law change. That statement caused the worth of Bitcoin to drop below $100,000. 

The Dogecoin and Shiba Inu prices share a positive correlation with the flagship crypto, so it was expected that they might also follow suit as BTC corrected. If the Bitcoin continues to drop, then the Dogecoin and Shiba Inu prices are also liable to further declines. 

What Next For DOGE?

In a recent X post, Kevin Capital mentioned that the bias is to the downside within the short term for the Dogecoin Price. This got here as he revealed that Dogecoin has witnessed seven straight candles in a row and did not get above the Macro .786 Fib. The analyst added that DOGE can be losing the macro .5 Fib on the linear chart. 

Meanwhile, Kevin also alluded to Bitcoin, considering the impact the flagship crypto could have on the Dogecoin and Shiba Inu prices by extension. The analyst stated that Bitcoin is getting rejected on the macro 1.703 level and printing a bearish every day candle while having a large amount of long liquidity to the downside.  

Nevertheless, the analyst is confident these coins will still regain bullish momentum. He stated that individuals are overreacting to Powell’s speech and that the dip will likely be bought. Consistent with this, he remarked that that is a traditional market correction. 

Featured image created with Dall.E, chart from Tradingview.com