Currently, the entire cryptocurrency market is going through a significant downturn. Bitcoins‘ price dropping below $70,000 has caused turmoil, and meme coins like Dogecoin and Shiba Inu have not escaped unscathed. Both coins suffered losses of at least 5% within the past day, leaving investors puzzled about the reasons behind this price decrease.
Dogecoin And Shiba Inu Fall 5%
When Bitcoin prices drop, the crypto market often follows suit due to its strong connection. Notably, when Bitcoin falls, meme coins typically experience significant losses because of their notoriously volatile and erratic pricing trends.
Despite a minimal decrease of around 2% for Bitcoin and a nearly 3% drop for Ethereum over the past day, meme coins Dogecoin and Shiba Inu experienced more significant losses, amounting to as much as 5%.
Prior to the market downturn, Dogecoin’s value hovered around $0.2. Conversely, Shiba Inu saw its price climb above $0.000029. However, following a price drop, Dogecoin dipped below $0.19, while Shiba Inu momentarily sank beneath $0.000027 before recovering and holding at that level, with investors hoping to fortify support at this point.
In the worlds of Shiba Inu and Dogecoin meme coins, sentiment has taken a hit as investors fear a prolonged bearish market. The impact is more apparent in Shiba Inu’s metrics, with a sharp 17% decrease in daily trading volume over the past day. Dogecoin, on the other hand, has experienced only modest gains of 0.4% in its daily trading volume, based on Coinmarketcap data.
What’s Driving The Decline?
The drop in prices for Dogecoin and Shiba Inu, as well as the broader cryptocurrency market, can be attributed to the significant decline in Bitcoin’s value. Therefore, understanding what caused Bitcoin’s price to decrease is essential in order to explain the reasons behind the falling prices of Dogecoin and Shiba Inu.
A significant reason for the recent drop in price is the underperforming US inflation figures. In contrast to previous predictions, the inflation numbers have fallen short over the past couple of months. Given the anticipated 75 basis point reduction in interest rates later this year, investors are becoming wary of riskier investments like Bitcoin.
An anticipated price drop, around 20-35%, often occurs prior to a Bitcoin halving based on past trends. Yet, Bitcoin’s behavior deviating from this pattern, such as reaching new record highs before a halving event, raises concerns about the reliability of this prediction.
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2024-04-10 18:11