What Happened With Shiba Inu Today?
Today, the total market capitalization of all cryptocurrencies has plunged by 6%. Not going against the trend, SHIB is also approaching the support level at $0.00002952. The superstar coin is now trading at $0.00003104.
Since its late-October peak, SHIB keeps on its downtrend by losing over 60% of its value.
Why Do We Have This Sudden Tumble?
The negative news that has appeared abundantly over the past few days are considered to be main reasons for SHIB and the whole crypto market crashing.
In Asia, the increasingly negative stance on cryptocurrencies from big economies has fueled concerns about how capital flows into crypto market will be affected. As in China, a Beijing court has officially rejected Bitcoin contracts, reinforcing perspectives of Chinese government about cryptocurrencies and crypto mining that are not in the country’s best interests. Russia’s central bank are also have a similar move by seeking ways to ban crypto investments.
Out of Asia, heading to Western countries, the tightening policy of US on central banks, and the actual rate hikes out of the U.K, signaling this could be the end of easy money policies.
Furthermore, rising inflation and the suppression of cheap money floating in the global ecosystem could prevent the growth of more speculative assets as investors seek higher returns in low-risk investments.
Speculative assets like SHIB have seen an amazing surge this year. But this isn’t a steady uptrend, so a dramatic plummeting to bottom is something predictable.
For now, it seems that market sentiment is still leaning towards a risk-off approach to assets like Shiba Inu, so it could be just a short-term downside. Will SHIB continue to fly to the mars or will it land on earth, let’s wait for future data to make conclusions!