Why Altcoins Like Shiba Inu and Solana Were Sliding on Tuesday

Source The Motley Fool

An uninspired, fairly directionless cryptocurrency market was draining value from a wide range of altcoins on Tuesday. This wasn't quite a rout, but still, the general gloom hanging over various types of investments shaved the prices of quite a few of the less popular cryptos.

Shiba Inu (CRYPTO: SHIB), whose logo is a jolly dog, wasn't in a good mood with its nearly 5% decline from 4 p.m. ET. Solana (CRYPTO: SOL) wasn't faring much better with a more than 4% drop, while Litecoin's (CRYPTO: LTC) almost 6% loss was feeling heavy for investors.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Trade fights and stagnant rates contribute to the bearishness

This really isn't the fault of those cryptos, or even the broader crypto market generally. For the most part, investors are sitting on the sidelines of many asset classes -- equities in particular -- on continued unease about how the current tariff spat between the U.S. and its major trading partners will play out.

If tariffs are imposed to any serious degree, they will surely affect at least several sectors of the U.S. economy (automobile manufacturing, for one, on the back of sharply increased prices for inputs from abroad). So for many would-be market players, now is a good time to wait and see how the drama unfolds.

If investors aren't bothering with stocks, bonds, or other classic financial assets, you can be sure they're avoiding the riskier plays like cryptocurrencies. Not surprisingly, three of the leading digital monies that set the pace for the market, Bitcoin, Ethereum, and Dogecoin, were all posting single-digit slumps late afternoon Tuesday.

Another factor in the general investor avoidance of coins and tokens is that the Federal Reserve's Open Market Committee is to meet on Wednesday to determine whether to make another cut to its key interest rates. The recent inflation readouts haven't been all that encouraging, leading many observers to predict that rates will stay at their current level.

All things being equal, lower rates encourage investors to take positions in assets considered to be relatively risky. It's arguable whether Bitcoin and Ethereum are overly dicey, given their rise and prominence, but we can say that nearly all altcoins fall into the high-risk category.

No quick cure

Much will depend on the Fed's Hump Day move (assuming it makes one, of course). Even if it does pull the lever on a cut, there's still that tariff question hanging over the global economy, which should continue to weigh on the value of cryptocurrencies and related investments. I don't see the current gloom lifting to any great degree in the immediate future.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $309,972!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $40,573!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $512,338!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Continue »

*Stock Advisor returns as of March 18, 2025

Eric Volkman has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Jul 01, 2024
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
Ripple says XRP reports will look different moving forward, avoiding an SEC repeat-case scenarioRipple CEO Brad Garlinghouse announced late Monday that the company will end its quarterly XRP Markets Report updates after Q2 2025.
Author  Cryptopolitan
May 06, Tue
Ripple CEO Brad Garlinghouse announced late Monday that the company will end its quarterly XRP Markets Report updates after Q2 2025.
placeholder
Solana (SOL) Cools After Recovery — Resistance Proving Difficult to CrackSOL price is now correcting gains and might struggle to rise above the $155 resistance.
Author  NewsBTC
Jul 04, Fri
SOL price is now correcting gains and might struggle to rise above the $155 resistance.
placeholder
Gold price edges up as the post-NFP USD rally falters amid US fiscal concernsGold price (XAU/USD) attracts some dip-buying during the Asian session on Friday and for now.
Author  FXStreet
Jul 04, Fri
Gold price (XAU/USD) attracts some dip-buying during the Asian session on Friday and for now.
goTop
quote