Shiba Inu (SHIB +3.55%) has been heading lower in today's trading. As of 11 p.m. ET Thursday, the cryptocurrency's token price had fallen 4.1% from where it stood at 4 p.m. ET Wednesday.
Shiba Inu was on the rise Wednesday after the Federal Reserve announced that it was lowering the benchmark interest rate by another quarter-percentage point, but its token price got hit with pullbacks after a major artificial intelligence (AI) company published its latest quarterly results. As of this writing, Shiba Inu is now down 60% across this year's trading.
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Shiba Inu investors got the rate cut they wanted yesterday
At its meeting yesterday, the Federal Reserve announced that its Federal Open Market Committee (FOMC) had voted to lower interest rates by another quarter point. The cut marked the third this year and gave crypto investors the result they were anticipating.
In addition to the rate reduction, Fed chair Jerome Powell indicated that it was unlikely that rates would be raised next year -- and that it was likely that another cut was on the way in 2026. The news initially propelled gains for Shiba Inu and other cryptocurrencies, but the momentum reversed after Oracle published results for the second quarter of its current fiscal year -- which ended Nov. 30.
CRYPTO: SHIB
Key Data Points
Why are Oracle's results driving sell-offs for Shiba Inu?
Oracle published its fiscal Q2 results after yesterday's market close, posting non-GAAP (adjusted) earnings per share of $2.26 on sales of $16.06 billion. Adjusted earnings came in $0.62 per share higher than anticipated, but revenue missed the market's target by $130 million.
Further complicating the picture, the company announced capital-expenditures guidance that was far higher than expected. With the sales shortfall and higher-than-expected capex guidance, investors became increasingly concerned about a valuation bubble for AI stocks. Valuations for cryptocurrencies and AI companies have frequently moved in tandem this year, and investors have been selling out of Shiba Inu today as part of broader risk-off momentum.
