Meme Coins Surge After Fed Decision: Bitcoin Also Climbs

Auckland, New Zealand – Dogecoin and Shiba Inu experienced significant price surges on May 4, 2025, following the U.S. Federal Reserve‘s decision to keep interest rates unchanged. Dogecoin (DOGE) rose over 4%, while Shiba Inu (SHIB) matched this gain, allowing both coins to recover from a sideways trading period.

The Fed’s announcement came after their Federal Open Market Committee (FOMC) meeting, which provided market clarity amid growing inflation concerns in the U.S. Despite fears that maintaining interest rates might negatively affect cryptocurrencies, analysts noted that investors viewed Bitcoin as a hedge against economic uncertainty. Bitcoin itself surged to a high of $97,000, which helped invigorate the overall market.

Fed Chair Jerome Powell reiterated that the U.S. economy remains stable, with inflation gradually decreasing, although he acknowledged that international tariffs continue to pose risks. As talks between the U.S. and other economies are set to begin on May 10, optimism grew around potential trade agreements, further boosting investor sentiment regarding meme coins.

Trending analyst indices indicate that Dogecoin could reach up to $0.30, driven by the current market momentum. Technical analysis suggests a reversal pattern, forecasting possible price increases as DOGE and SHIB attracted renewed interest.

Scott Bessent, the U.S. Treasury Secretary, proposed that trade agreements with up to 17 key trading partners might alleviate fears associated with the ongoing tariff impacts. This development is viewed favorably by crypto investors who are closely watching the interplay between economic policy and digital asset performance.

While interest in meme coins continues to swell, seasoned analysts advise caution. The ongoing price fluctuations in DOGE and SHIB emphasize the volatile nature of cryptocurrencies. Despite the recent gains, the market remains sensitive to external economic conditions and regulatory news that could influence crypto asset values.

As meme coins regain traction, the future for both Dogecoin and Shiba Inu remains uncertain, subject to the volatile nature of cryptocurrency trading and market sentiment.