Dogecoin and Shiba Inu bleed in Pre-FOMC crypto snoozefest

• Crypto market activity is typical of previous cases where investors were waiting for a decision on an interest rate increase from the Federal Reserve.
• Investors are risk-averse, pulling capital out of volatile crypto-assets, meme coins, ahead of the expected 75bps increase on Wednesday.
• Analysts believe Dogecoin is working to break out of its multi-year downtrend.

Dogecoin and Shiba Inu prices fell alongside Bitcoin, Ethereum and other cryptocurrencies in the top 30 ahead of the FOMC meeting. However, analysts are optimistic that Dogecoin will break out of its multi-year trend line.

Also read: Dogecoin copycat gets the rug pulled drops 99% overnight

Dogecoin and Shiba Inu prices drop ahead of upcoming interest rate hikes

The Federal Open Market Committee meets eight times a year to discuss changes in monetary policy and assess economic and financial conditions to assess the stability of prices in the economy. The FOMC meets on Wednesday for an expected rate hike of 75 bps. Investors were risk-averse ahead of the event, pulling capital out of cryptocurrencies; therefore, assets in the top 30 witnessed a sharp decline.

Dogecoin and Shiba Inu prices fell, and meme coins failed to recoup losses from two weeks ago. Investors are sitting on their hands as experts have predicted a 75 bps hike on Wednesday. The current state of the crypto markets is considered typical ahead of the FOMC meeting.

Market participants have been expecting a third mega-increase in September 2022. Monetary policy is tightening faster than expected, and growth is slowing. This environment has resulted in capital outflows from meme coins and the DeFi ecosystem.

Dogecoin is seeing renewed interest from whales

Whale activity on the Dogecoin network has increased significantly following the meme coin’s dominance spike. Based on data from crypto intelligence firm Santiment, Dogecoin and Shiba Inu are among the popular cryptocurrencies in whale portfolios.

Crypto investors who spent over $100,000 per transaction accumulate DOGE, and there are 100+ large transactions daily on the Dogecoin network.

Ethereum whales own 493.65 billion Shiba Inu tokens

Shiba Inu is one of the largest non-Ethereum holdings of the top 100 Ethereum whales. Based on data from WhaleStates, whales have a total of 493.65 billion Shiba Inu worth $5.4 million.

Top 10 Holdings of 100 Largest Ethereum Whales

Analysts are positive about the recovery of Dogecoin and Shiba Inu

Analysts at FXStreet believe that Dogecoin is poised to break out of its multi-year trend line. Since May 2021, the Dogecoin price has fallen rapidly, but now the asset is poised to recover. Apart from a few bounces in the price chart, the Dogecoin price has been falling steadily, losing 91.6% of its value year-over-year. For target prices and more information on the Dogecoin chart, check out the video below: