It’s no surprise to any crypto investors that the digital asset market is down overall, but it’s been especially challenging for two previous highfliers – and respectively. Last Tuesday, cryptocurrency analytics firm – Arcane Research – released its most recent report exploring the state of the industry, which bears those facts out.

This graphic from Arcane Research, shows that crypto stalwarts – (BTC) and (ETH) – are down -52% and -54% respectively from their all time highs; while the meme coins Shiba Inu (SHIB) and Dogecoin (DOGE) have fallen even further from their peaks. SHIB has fallen -77%, while DOGE is down 82%.

Earlier this month, chief commodity strategist at Bloomberg, Mike McGlone, predicted this decline for these two meme projects in his latest research report titled — Crypto Outlook: Don’t Fight the Fed — which examined the potential impact of pending government interest rate hikes on cryptocurrencies. While McGlone’s outlook is not good for thousands of the no-name crypto projects out there, he foresaw that DOGE and SHIB would be hit especially hard.

Crypto can be a sign that the market is slowing down, as it tops all speculative exaggerations. McGlone’s report stated that the market peak for meme coins Dogecoin (and Shiba Inu) coincided with similar highs. It highlights the key indicators of crypto. “SHIB in the second half of 2021 and DOGE in the first half of 2021 are examples of coins that are speculative hype and fun for gamers on an unprecedented global scale, 24/7.”
What he meant by those published comments was that what shoots up fast tends to drop just as far and fast, which is what has happened with Dogecoin and Shiba Inu – well in advance of an actual rate hike from the Federal Reserve this year. According to his report, investors are more likely to abandon risky investments if interest rates rises. Instead they will seek safer investments with higher yields. McGlone believes that Bitcoin and Ethereum will eventually reach all-time highs. However, he expressed concerns about investors who have begun to flee from dog-themed meme assets.

Both DOGE (and SHIB) have fallen out of the top 10 most valuable coins according to market capitalization since their peak. McGlone suggested that these speculative investments could be further affected by rising interest rates.

“The endless battle for the top cryptocurrencies, often fueled by hype and speculation, makes us realize that most things that add up quickly are scary,” said McGlone.

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