3 Reasons Why Shiba Inu and Dogecoin Price Is Dropping Today?

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As a seasoned crypto investor who has seen the market ebb and flow like the tides of the ocean, I must admit that today’s volatility is nothing new. However, it’s always disheartening to see popular tokens like Shiba Inu (SHIB) and Dogecoin (DOGE) take a hit, especially when they have shown such promise.

As an analyst, I find myself immersed in a vast crypto landscape teeming with over a trillion dollars in market capitalization and countless tokens ripe for trading. This expansive industry presents lucrative earning possibilities, yet it remains humble due to its inherent volatility, consistently witnessing fluctuations. Today is another day where this volatility has taken a toll, causing many cryptocurrencies, including the two popular meme coins, Shiba Inu and Dogecoin, to plunge. Specifically, the Dogecoin price has dropped by 5.45%, while Shiba Inu’s price has experienced a 3.3% decrease.

3 Factors Bringing The Shiba Inu and Dogecoin Price Down

As a researcher delving into the cryptocurrency realm, I’ve noticed a perplexing trend: the recent dip in value for Shiba Inu (SHIB) and Dogecoin (DOGE), two meme coins that have garnered significant attention. Despite promising developments – a tenfold increase in block speed suggested for Dogecoin through its trail map update, and a staggering 2000% surge in SHIB burn – both digital tokens are experiencing a downturn today. I’ve identified three key factors contributing to this unexpected turn of events.

1. Profit Taking & Capital Rotation In the Market

Dogecoin (DOGE) and Shiba Inu (SHIB) are among the earliest meme-based cryptocurrencies that have held a significant portion of the market share due to their high market caps, being pioneers in this category. However, as new tokens emerge, investors tend to shift their investments towards them in search of higher returns or more stability within the dynamic crypto market.

Lately, TRON-associated tokens have been leading the market, thanks to growing excitement. Riding on this enthusiasm, one shrewd TRON investor pocketed $7 Million by just putting in around $300. This success story has had a negative impact on the performance of DOGS and SHIB, and the absence of positive indicators has exacerbated it.

2. Historic September Slump Affected Dogecoin Price

There’s been a general downturn in the cryptocurrency market recently, causing users to feel fearful and uncertain about making new trades or taking risks. This apprehension is not unusual for September, as the crypto market often experiences a decline during this month.

According to recent findings from Rekt Capital, the value of Bitcoin has decreased by 6.19% over just seven days, underscoring its decline in September. Moreover, the report highlights that this minor decrease has persisted consistently for a remarkable nine-year period since 2013.

#BTC
Bitcoin is down -6.19% for the month of September
In 2022, 2021, 2020, 2018, and 2017, there was a similar single-digit drop in September to what we saw this year.
This downside is not out of the ordinary$BTC #Crypto #Bitcoin
— Rekt Capital (@rektcapital) September 6, 2024

The drawback isn’t unique to Bitcoin alone; other cryptocurrencies also experience this issue because Bitcoin holds a significant share of the market and tends to influence their trends.

3. Bitcoin Price Crash

After the Rekt Capital report, Bitcoin has been experiencing tough times in the market for several days now. The current price stands at approximately $54,252.53, marking an 8% decrease over the past week. Interestingly, it dipped to around $53,000 earlier today, but has since rebounded slightly. On the other hand, Dogecoin’s price has dropped to $0.0892, currently at $0.0937, and Shiba Inu’s price fell to $0.00001242, now standing at $0.00001297.

The overall crypto market is currently experiencing a downturn, affecting both SHIB and DOGE coins. This trend is often triggered by Bitcoin’s influence, where a weak performance by BTC usually leads to similar results for other cryptocurrencies. Interestingly, at the moment of this report, Bitcoin’s price has rebounded, and we are seeing a similar recovery in these meme tokens as well.

Final Thoughts

The persistent decrease in value for Shiba Inu and Dogecoin, as well as other cryptocurrencies, is due to the broader crypto market downturn, triggered by recent US employment statistics. Additionally, the plunge in Bitcoin’s price and the significant decline in the U.S. stock market have led investors to feel apprehensive, which has negatively affected altcoins’ performance. This drop also corresponds with the historical trend of a September slump, occurring nine times over the past 12 years.

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2024-09-07 12:18