Dogecoin and Shiba Inu Prices Crashed After Jerome Powell’s Speech Painted a Bearish Picture for Crypto Assets

The Dogecoin and Shiba Inu prices are both down over 5% in the last 24 hours. This price crash has happened despite the Federal Reserve announcing a 25 bps rate cut.

Dogecoin and Shiba Inu prices crashed in the last 24 hours, partly due to Jerome Powell’s speech. Despite the announcement of a 25 basis point (bps) rate cut by the Federal Reserve, both meme coin prices declined by over 5%.

The price crashes occurred as Powell's speech was interpreted as bearish for crypto assets. During his speech, Powell stated that the Fed was currently “hawkish” despite the 25 bps rate cut. He also hinted at fewer rate cuts in 2025 after making three this year.

Dogecoin and Shiba Inu prices are influenced by the Fed's stance, as investors become more skeptical about investing in these risky assets when the central bank takes a hawkish approach.

Crypto analyst Kevin Capital noted that Dogecoin's technical indicators were bearish, but the analysis could be invalidated if the Fed became dovish. However, Powell's statements maintained the bearish outlook for Dogecoin.

Additionally, Powell's comments on the Strategic Bitcoin Reserve may have contributed to the price crashes. The Fed Chair stated that the US Central Bank was not permitted to hold Bitcoin and would not be seeking a law change. This statement caused Bitcoin's price to drop below $100,000.

Dogecoin and Shiba Inu prices generally follow the trend of the flagship cryptocurrency, so their decline was expected as BTC corrected. If Bitcoin continues to fall, Dogecoin and Shiba Inu prices could also experience further drops.