Bitcoin (BTC), Shiba Inu (SHIB), and Dogecoin (DOGE) Show Red as Fed Remarks Drive Near-Term Sell-Off in Risk Assets

Three of the most important cryptocurrencies investors watch are showing a lot of red on the screen today. As of 2:15 p.m. ET, Bitcoin (BTC -3.83%), Shiba

Three of the largest cryptocurrencies by market cap are trading lower on Wednesday afternoon. As of 2:15 p.p.m. ET, Bitcoin (CRYPTO: BTC) has fallen 3.83% over the past 24 hours, while Shiba Inu (CRYPTO: SHIB) and Dogecoin (CRYPTO: DOGE) have both seen steeper declines of 10.88% and 8.85%, respectively.

Bitcoin, the world's largest cryptocurrency by market cap, has seen a choppy start to the week after rallying last week. On Monday, Bitcoin fell below a key technical level after rallying more than 75% year to date. Today's sell-off comes as a bit of a surprise after Bitcoin rallied early Tuesday morning following news that MicroStrategy (NASDAQ:MSTR) will begin accepting Bitcoin for future debt offerings.

Bitcoin price chart. Data source: Yahoo Finance.

Bitcoin's sell-off is having an outsize impact on meme tokens like Shiba Inu and Dogecoin, which both saw large inflows of capital during the meme-stock trading frenzy of early 2023. Both tokens have seen large selloffs over the past 24 hours, continuing a trend that began earlier this week.

Shiba Inu price chart. Data source: Yahoo Finance.

Shiba Inu and Dogecoin both saw large rallies earlier this year, but both tokens have now given up a significant portion of those gains. Both tokens are still up substantially year to date, but investors who bought at the highs earlier this year are now sitting on large losses. Both tokens are also seeing a significant amount of selling pressure from derivatives markets, with both tokens seeing large liquidations of bullish bets on each token.

Dogecoin price chart. Data source: Yahoo Finance.

Both Shiba Inu and Dogecoin are seeing large liquidations of bullish bets on each token, a trend that began earlier this week. Both tokens combined saw more than $5 million of bullish bets on each token liquidated, a trend that began earlier this week and is now forcing investor capital out of each token and initiating forced selling.

What's Next for Top Meme Coins?

Both Shiba Inu and Dogecoin are highly speculative meme tokens that have seen outsize gains and losses this year. Both tokens are now down significantly from their highs earlier this year, and both tokens are seeing a large amount of selling pressure from derivatives markets.

While both tokens could see another round of gains if the market turns around, both tokens are also at risk of further losses if the market continues to sell off. Investors should proceed with caution when investing in either token.

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