Why Dogecoin, Shiba Inu and Avalanche are rising today

Several cryptocurrencies rose this morning as new economic data emerged and as the trajectory of oil prices continued to focus on rising tensions in the Middle East.

Price of meme tokens Dogecoin (DOGE 4.62%) and Shiba Inu (SHIB 9.34%) traded nearly 3% and 9% higher, respectively. The price of Aavalanche (AVAX 7.22%) increased by about 4%.

Jobs and oil

Deciphering cryptocurrency movements can be difficult. But we know that cryptocurrencies are heavily influenced by the strength of the US dollar, which is influenced by factors such as interest rates and the price of oil. Both have been on the radar this week.

Earlier this morning, the US Bureau of Labor Statistics (BLS) reported that the US economy added $254,000 in jobs in September, a blowout compared to economists’ expectations of just 150,000 new jobs. The unemployment rate fell 10 basis points from August to 4.1 percent, and average hourly earnings rose 0.4 percent from the previous month and are now up 4 percent year over year. Both numbers beat the consensus.

These data show a strong economy with a healthy labor market, meaning the Federal Reserve cut interest rates more slowly than previously expected. Following the jobs report, nearly 95 percent of traders betting on the path of the federal funds rate expect the Fed to hike by a quarter point in November. That’s up from 68% yesterday. Furthermore, most traders now expect interest rates to fall to only between 3.25% and 3.50% by the end of 2025. Just a few days ago, many believed that rates could fall below 3% by the end of next year.

Image source: Getty Images.

Fewer interest rate cuts than expected could lead to less dollar weakness than expected, which may not be so good for cryptocurrencies. On the other hand, cryptocurrencies could benefit as oil price growth slows. Over the past five days, crude oil futures have risen more than 8.6 percent, reflecting concerns that Israel could eventually touch some of Iran’s oil reserves or infrastructure.

Oil futures rose less than 1% today despite the ongoing war in the Middle East. Experts believe that most investors are still pricing oil in the long term.