Shiba Inu (SHIB -10.71%) is experiencing strong selling during Tuesday trading. The cryptocurrency’s token price has fallen by 8.2% over the past 24 hours – a period which has also seen BitcoinThe price drops by 5% and EthereumThe price drop by 7.4%.
Shiba Inu is losing ground amid a significant pullback in the broader cryptocurrency market. Today’s sell-off was triggered by new data from the US Bureau of Labor Statistics (BLS) that raised concerns about inflationary pressures and the interest rate outlook.
Jobs Data and Treasury Yields Have Shiba Inu Investors Running
This morning, the BLS released job opening data for November. The report shows that there were 8.1 million job openings during the month, higher than the average analyst estimate of 7.7 million job openings during the period. Analysts had predicted that job openings would decline slightly from the 7.7 million openings recorded in October, but the trend unexpectedly turned upward.
Investors fear the latest jobs data is a sign that higher-than-expected levels of economic activity will increase inflationary pressures. Along with this news, US Treasury yields rose today.
Even in the wake of recent interest rate cuts by the Federal Reserve, the benchmark rate has remained relatively high in an effort to combat inflation. If economic indicators continue to be favorable, this could be a sign that inflationary pressures are about to re-emerge. This would likely mean that interest rates would be reduced at a slower pace, which would be a bearish development for Shiba Inu and other cryptocurrencies.
What’s next for Shiba Inu?
Over the next year, macroeconomic conditions will likely be the biggest factor in determining Shiba Inu performance. THE coin could rebound and continue to soar if indicators suggest inflation is under control and there is a path for further interest rate cuts. On the other hand, the token will likely see strong sell-offs if macroeconomic conditions deteriorate.
Beyond the inflation and interest rate news, the rollout of the SHIB: The Metaverse platform is a coin-specific catalyst that could have some impact on the cryptocurrency’s token price. While it’s unclear whether the virtual world will drive meaningful engagement, the Metaverse recently launched into early access and could help spark interest in Shiba Inu and encourage activity in its ecosystem.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool posts and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.