Poodlana token rose for the second consecutive day as Bitcoin and other cryptocurrencies bounced back. It jumped to a high of $0.029, up by over 20% from its lowest point on Thursday this week. It has also soared by over 90% from the lowest point on Aug. 20.
Federal Reserve rate cut hopes
The main catalyst for the Poodlana rally was the ongoing crypto comeback. Bitcoin, the biggest crypto in the industry, surged to $64,260, its highest point in weeks and much higher than this month’s low of $49,000.
Other cryptocurrencies like Ethereum, Solana, Ripple, and Toncoin rose sharply. The other notable gainers were the likes of Sunpepe, Pepe, Dogwifhat, and Book of Meme.
This rally happened as investors cheered the upcoming Federal Reserve pivot as the US economy weakness continues. The most recent data showed that the manufacturing sector continued contracting in August.
Worse, the Fed has been relying on faulty jobs numbers to make its decision. A report released this week showed that the number of jobs created by the economy in the 12 months to March were 818k lower than the reported ones. That was the worst revision in over a decade.
Therefore, in a statement last Friday, Jerome Powell hinted that the Fed would start cutting interest rates in September. The market also expects that the bank will deliver more rate cuts later this year to prevent a hard landing.
Cryptocurrencies and other risky assets do well when the Fed is cutting interest rates. A good example of this is what happened in 2020 as the Fed slashed interest rates to deal with the Covid-19. Bitcoin’s surge led to the birth of meme coins like Shiba Inu and Floki.
At the time, Bitcoin cut rates to zero, which helped to push Bitcoin to a high of $69,000. It then started falling when inflation started rising, leading to expectations that the bank would slash rates.
The coins are also rising after Robert Kennedy dropped out of the presidential race and endorsed Donald Trump. This endorsement means that Trump could attract some of Kennedy’s voters.
Poodlana to regain momentum
Analysts believe that Poodlana, a new Solana meme coin that raised millions of dollars has room to do well despite the recent turbulence.
They point to the performance of other meme coins that have moved from nowhere to become sensations.
Some of the most notable tokens are Dogwifhat, Bonk, Pepe,…