Crypto Market Slumped: What Will Happen to Shiba Inu Coins?
2022-05-11 16:42:09
What Will Happen To Shiba Inu Coins When Bitcoin Plunges In May?
As the cryptocurrency market continues to lose ground, its total market cap has fallen to $1.4 trillion. Meanwhile, the price of Bitcoin briefly fell below the $30,000 mark, falling below $31,000 for the first time since July 2021. Shiba Inu coin also fell to a low price of $0.00001366.
Major global stock markets suffered their worst one-day drop on May 9 since 2020 as investors worried about signs of a slowdown in the world's largest economies at a time when central banks have been tightening their crisis-era stimulus measures. As more professional investors trade cryptocurrencies, the market's movements are increasingly trending in sync with traditional markets. Bitcoin has largely moved in tandem with other riskier assets during its plunge, with a particularly pronounced correlation to tech stocks.
At the time of writing, Shiba Inu coin is listed on Gate.io International Digital Currency Exchange at $0.00001592, having lost 21.7% of its value in the last 7 days. In the last 24 hours the price rose by 9.2% and the volume traded was $1,840,958,914. The token's market capitalization is $8.7 billion. However, amidst this market movement, Shiba Inu coin became second in the Whale wallet, accounting for 14.89% of the total wallet and valued at $769,637,372.
Last week, the Federal Reserve announced a 50 basis point rate hike to fight inflation and began tapering in June, and the Bank of England followed with another 25 basis point rate hike. The Federal Reserve said in its semi-annual "Financial Stability Report" released on May 9 that the increasing use of stable coins to meet margin requirements in leveraged cryptocurrency transactions could increase redemption risk.
The Fed's rate hike had seen a market rally for a brief 1-day period, but was followed by a large degree of decline. Such a scenario coincides with the profitability seen in late 2018, and in the bear market of late 2019-2020. However, it should be noted that both of these examples occurred before the final big crash in the market.
Australia-based video game company Playside will feature a Shiba Inu-themed NFT - called Shiboshi - in its upcoming virtual world game of the same name.
Playside notes that Shiba Inu will release documentation for their Layer 2 blockchain, Shibarium, "this month or next”. According to PlaySide, the game could launch anytime between July 2022 and September 2022, with featured playing cards revealed gradually throughout the year.
Could this be a way to attract more potential investors to buy Shiba Inu coin? The current Shiba Inu coin price is down 48.4% compared to its peak of $0.00003355 in the first half of 2022. The release of the second layer blockchain Shibarium might be a way to help Shiba Inu coin's price go back up.
As the cryptocurrency market continues to lose ground, its total market cap has fallen to $1.4 trillion. Meanwhile, the price of Bitcoin briefly fell below the $30,000 mark, falling below $31,000 for the first time since July 2021. Shiba Inu coin also fell to a low price of $0.00001366.
Major global stock markets suffered their worst one-day drop on May 9 since 2020 as investors worried about signs of a slowdown in the world's largest economies at a time when central banks have been tightening their crisis-era stimulus measures. As more professional investors trade cryptocurrencies, the market's movements are increasingly trending in sync with traditional markets. Bitcoin has largely moved in tandem with other riskier assets during its plunge, with a particularly pronounced correlation to tech stocks.
At the time of writing, Shiba Inu coin is listed on Gate.io International Digital Currency Exchange at $0.00001592, having lost 21.7% of its value in the last 7 days. In the last 24 hours the price rose by 9.2% and the volume traded was $1,840,958,914. The token's market capitalization is $8.7 billion. However, amidst this market movement, Shiba Inu coin became second in the Whale wallet, accounting for 14.89% of the total wallet and valued at $769,637,372.
Reasons for The Plunge of Shiba Inu Coin
Last week, the Federal Reserve announced a 50 basis point rate hike to fight inflation and began tapering in June, and the Bank of England followed with another 25 basis point rate hike. The Federal Reserve said in its semi-annual "Financial Stability Report" released on May 9 that the increasing use of stable coins to meet margin requirements in leveraged cryptocurrency transactions could increase redemption risk.
The Fed's rate hike had seen a market rally for a brief 1-day period, but was followed by a large degree of decline. Such a scenario coincides with the profitability seen in late 2018, and in the bear market of late 2019-2020. However, it should be noted that both of these examples occurred before the final big crash in the market.
What Kind of Transformation Is Coming to Shiba Inu Coins?
Australia-based video game company Playside will feature a Shiba Inu-themed NFT - called Shiboshi - in its upcoming virtual world game of the same name.
Playside notes that Shiba Inu will release documentation for their Layer 2 blockchain, Shibarium, "this month or next”. According to PlaySide, the game could launch anytime between July 2022 and September 2022, with featured playing cards revealed gradually throughout the year.
Could this be a way to attract more potential investors to buy Shiba Inu coin? The current Shiba Inu coin price is down 48.4% compared to its peak of $0.00003355 in the first half of 2022. The release of the second layer blockchain Shibarium might be a way to help Shiba Inu coin's price go back up.
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