Most meme coin prices rebounded on Saturday, December 21 after falling for most of the week, with their combined market cap rising 4.7% to $109 billion.
Shiba Inu (SHIB) price rose 12.6% to hit an intraday high of $0.00002397. Bonk (BONK), the largest meme coin in the Solana ecosystem, rose 20% to $0.000032. Pepe (PEPE) and other popular meme coins like Dogwifhat and Pudgy Penguins rose over 15%.
This rally came after a crash in Bitcoin (BTC) from $108,200 to $97,000 triggered a major decline for most altcoins. The total market capitalization of all cryptocurrencies fell from over $3.7 trillion to $3.37 trillion.
The recovery is likely due to the encouraging US personal consumption spending report. The benchmark PCE index, the Federal Reserve’s favorite inflation indicator, fell to 0.1% in November from 0.2% in October. Core PCE fell to 0.1% from 0.3%, a sign that inflation was slowing in urban and rural areas.
American stocks also reacted positively to the PCE report on Friday, with the Dow Jones, S&P 500 and Nasdaq 100 indices rising over 1.18%, 1.10% and 0.85%, respectively.
These numbers came days after a hawkish Fed decision triggered a selloff in risky assets like stocks and cryptocurrencies. The bank cut interest rates by 0.25%, bringing the annual cuts to one percent, and indicated it would make two more cuts in 2024. Last session’s dot plot suggested four declines.
The Fed justified its restrictive stance with stubbornly high inflation. Latest data showed the headline consumer price index rose to 2.7%, while the core CPI remained at 3.3%. The bank also suspects that some of…
