Dogecoin News Today: Investors Bet on Meme Coins as Fed Easing Looms

Meme coins have seen a renewed surge in trading activity as markets increasingly anticipate a Federal Reserve interest rate cut in September. The U.S. central bank is now widely expected to reduce its benchmark interest rate by at least 25 basis points, potentially even 50 basis points, to support a slowing labor market. This development has led to heightened optimism among investors in speculative assets such as meme coins, which are often driven by sentiment and retail investor participation [1].

The recent labor market report revealed weaker-than-expected job creation in August, reinforcing concerns about employment trends and prompting analysts to suggest that the Fed may prioritize supporting employment over curbing inflation [1]. Markets have priced in a 14% chance of a 50 basis point cut, a significant shift from earlier expectations of only a 25 basis point reduction. According to the CME Group’s FedWatch tool, investors are now nearly certain the Fed will act at its meeting on September 16–17 [1].

The anticipated rate cut has fueled renewed enthusiasm in the meme coin market. One of the most notable examples is the TRUMP meme coin, which launched in January 2025 with a dramatic surge from below $1 to a peak of $73.43 in just a few days. While it has since lost momentum, the coin remains one of the largest names in the meme coin space, with a current price of $8.41 and a market capitalization of approximately $1.683 billion [3]. Analysts have explored what might happen if TRUMP were to achieve a similar market capitalization to Dogecoin, the most established meme coin. At its current market cap, TRUMP is only 0.05 times the size of Dogecoin, implying that for TRUMP to reach Dogecoin’s current valuation, its price would need to rise to around $160.99 [3].

The speculative nature of meme coins is underscored by their lack of intrinsic value and reliance on market sentiment. Unlike traditional assets, meme coins are not backed by tangible assets or government guarantees. Their value is derived from the collective belief of investors, and their future performance remains highly uncertain. For example, political figures such as Donald Trump and potential candidates like California Governor Gavin Newsom have introduced meme coins, but these are not traditional investments. Instead, they represent a form of crowd-sourced funding, where the value depends entirely on buyer interest [2].

The recent rally in meme coins highlights the broader market anticipation for Fed easing, but also underscores the volatile and unpredictable nature of such assets. While a rate cut could lead to a more accommodative monetary environment, which may favor speculative investments, it is important to recognize that meme coins are not a substitute for sound investment strategies. As with any high-risk asset class, investors should approach meme coin trading with caution and a clear understanding of the risks involved [2].

Source: [1] Fed Rate Cut Now Certain After Weak Jobs Report (https://www.investopedia.com/job-report-seals-federal-reserve-interest-rate-cut-in-september-11804268) [2] An Important Reminder for Investors as More Politicians Announce Meme Coin Drops (https://www.nasdaq.com/articles/important-reminder-investors-more-politicians-announce-meme-coin-drops) [3] Here's How Much The TRUMP Meme Coin Will Be With (https://www.mitrade.com/insights/news/live-news/article-3-1089826-20250903)