Shiba Inu (CRYPTO: SHIB) is trading lower by 3.14% to $0.00000726 Thursday afternoon amid overall weakness in cryptocurrencies. The altcoin may be trading lower in sympathy with the broader U.S. market following better-than-expected US jobs data, which could raise concerns over further rate hikes. Additionally, Dallas Fed president Logan said more rate hikes are likely necessary.
See Also: Shiba Inu Sees Dramatic Surge In Network Growth
What Happened?
In the latest June FOMC Minutes, the Federal Reserve highlighted that while job market conditions remain tight, there were some signs of supply and demand in the labor market moving toward a better balance.
These new labor market data points arrive just one day before the highly anticipated non-farm payrolls report, which is set to be released Friday morning…Read More
What Else?
Higher interest rates increase the opportunity cost of holding altcoins like Shiba Inu. As borrowing costs rise, investors may opt for alternative investments that provide higher returns with lower risk, rather than investing in speculative altcoins.
This reduced demand for altcoins can negatively impact Shiba Inu’s price and liquidity.
