The Federal Reserve's hawkish rate cut strikes the cryptocurrency market! Bitcoin falls below $100,000, and Dogecoin and MEME coins plummet
The Federal Reserve's hawkish interest rate cuts have led to fluctuations in the cryptocurrency market, with the price of Dogecoin dropping to $0.31, a nearly one-quarter decline from last week. Bitcoin, after reaching an all-time high of $108,000, is currently priced at about $95,000. Despite Dogecoin's 233% increase over the past year, the market's cautious attitude towards future interest rate cuts has prompted cryptocurrency traders to reduce risk. Experts point out that MEME coins attract young investors, but there is a need to educate them to participate in more practical projects
According to the Zhitong Finance APP, the price of the popular MEME coin Dogecoin has fallen to $0.31, down nearly a quarter compared to last week. Meanwhile, the world's largest cryptocurrency Bitcoin has dropped to around $95,000 after reaching a historic high of $108,000 last week.
The price of Dogecoin briefly fell to $0.267 last Friday, marking its lowest point in over a month. However, the token has still risen by 233% over the past 12 months.
With Dogecoin supporter Elon Musk appointed as the head of the U.S. "Department of Government Efficiency" (DOGE), there is speculation that Dogecoin may experience remarkable growth during Donald Trump's presidency.
However, the Federal Reserve lowered interest rates by 25 basis points as expected last week, but policymakers hinted at a more cautious approach to future rate cuts, causing Bitcoin's price to drop. Zaheer Ebtikar, founder of cryptocurrency fund Split Capital, stated, "Global markets are digesting expectations of a reduced dovish stance from the Federal Reserve in 2025. Therefore, cryptocurrency traders and market makers are reducing risk."
Overall, since Trump's election victory, the value of MEME coins has significantly increased. Since November 6, the market capitalization of MEME coins has exceeded $66 billion, reaching its highest level in seven months.
Ben Kurland, CEO of cryptocurrency research platform DYOR Labs, stated, "MEME coins are the candy of the cryptocurrency world—fun, flashy, and easy to accept, but they are not the healthiest long-term investment. That said, they play an important role as a gateway for young investors."
Kurland added, "The challenge we face is transforming those who are new to the space into educated participants, helping them graduate from MEME coins to engage in truly practical projects. MEME coins may attract people to participate, but keeping them engaged will depend on the broader crypto community."
Kurland noted, "MEME coins and community-driven projects may thrive in a more relaxed environment, but real growth will hinge on legitimacy. The days of 'pump and dump' MEME coins dominating the headlines may give way to community tokens with actual utility."