SHIBA INU Free Fall 2022: We wrote an article in the past will shiba inu coin reach $1 or even $0.0001. However overall volatility appears to be much more challenging than what we originally predicated for.
The crypto markets have been on a massive decline over the past few weeks, leading to a drop in value for many digital assets. This decline has led to a significant reduction in the global crypto market cap.
According to data from the Coinmarketcap website, the global crypto market cap has shrunk to $1.42 trillion. As of January 2022, the international crypto market cap was worth over $2.2 trillion.
Individual crypto assets have also experienced a drop in value over the past week. For example, the leading crypto asset, Bitcoin, saw its value reduce from the $46,000 price range in March 2022; Bitcoin briefly dropped as low as $29,000 overnight — its lowest level since July 2021. The drop in the value of Bitcoin also led to the decline of many other crypto assets like Ethereum, Solana, DOGE, and Shiba Inu.
This article will consider likely reasons for the recent drop in the value of digital assets in the crypto markets. Additionally, we will look at the current price history of the popular meme token Shiba Inu concerning the recent decline in the crypto markets. Finally, we will provide a verdict on the short-term and long-term prospects of the SHIB token.
Factors Behind The Recent Decline of Digital Assets In The Crypto Markets
The recent decline of digital assets in the crypto markets can be attributed to several factors. This section of our article will reveal some factors behind the decline in the markets.
SHIBA INU Free Fall 2022 : Crash In Bitcoin Price
As previously stated, a crash in the price of Bitcoin has led to a massive decline in the value of most other digital assets in the markets. Previously worth over $40,000 in March 2022, Bitcoin briefly dropped to as low as $30,000 within the past week — its lowest point since July 2021.
A drop in value for Bitcoin triggered a reduction in price for many other tokens, including the SHIB token. As of April 12, 2022, the SHIB token price was 0.00003013. However, with a continuous drop in value in the crypto markets, the SHIBA Inu token price dropped to the 0.0001357 price range.
According to the Coinmarketcap price website, the Shiba Inu token price is currently worth $0.0000147 per token. Data from the Coinmarketcap also shows an enormous drop in the market cap for the SHIB token. Previously worth over $8.6 billion, the market has shrunk by 16.07%. Currently, this token market cap is slightly over $8 billion.
However, it is vital to note that the drop in value of this asset and other crypto assets can also be attributed to a combination of other factors in the crypto space. Let us review some other factors.
SHIBA INU Free Fall 2022: The Fall Of TerraUSD (UST) Stablecoin
The recent crash of the UST stablecoin has also played a significant role in the massive decline of crypto assets within the markets. Tagged as one of the largest stablecoins in the crypto ecosystem, the fall of TerraUSD has triggered panic among crypto traders worldwide.
Its fall is also a significant reason behind the crash of Bitcoin. The value of UST tokens should be tied to the US dollar, as it is designed initially as a stablecoin. As such, this token should be valued at $1. Over the past week, the stablecoin’s value has dropped below 80 cents, triggering a massive sell-off.
In a bid to defend the price of the UST token, the Luna Foundation Guard, responsible for the UST project, moved $1.3 billion bitcoin from its reserve. Additionally, the platform bought $850 million worth of Bitcoin to cover its losses.
This action alone has triggered a massive selloff for Bitcoin. Speaking with TechCrunch on this matter, senior market analyst for Cubic Analytics, Caleb Franzen, noted that “historically negative performance” and “historically negative sentiment” can lead to “continued selloff,” which impacts prices negatively.
Also, in an interview with TechCrunch, Corey Miller, a top executive at dYdX, stated that “This [action could] add meaningful sell pressure on bitcoin and could drag down markets with it,”
Concerns Over Upcoming Crypto Regulations
Generally, most crypto assets grow in value due to traders’ confidence in the markets. However, when there is skepticism in the markets or significant policy changes, the value of most crypto assets will nosedive.
A case in point that proves this to be true is the massive downtrend that occurred in the markets after the ban on bitcoin mining by the Chinese government in July 2021. At the time, the price of the SHIB token and many other crypto assets plummeted in value.
There was also concern over the high energy consumption of Bitcoin miners during this period. In May 2021, Tesla ceased accepting bitcoin payments for environmental reasons. This action led to a loss of confidence on the part of crypto traders and a sharp drop in the value of many crypto assets.
Currently, many crypto investors are anxiously waiting for the development of regulations that are meant to guide activities within the crypto markets. These regulations will determine government policies on crypto trading, lending, mining, and other aspects of the crypto space.
Some of the countries currently considering regulations for the crypto space include India, Germany, the United States, China, and the United Kingdom. Perceived delays on the part of regulators have created uncertainty over the past few months.
Uncertainty is downplaying the confidence of crypto traders and it has led to panic when there are breaches or hacks within the crypto markets. Consumer confidence has been shaken by these hacks, leading to massive withdrawals of funds when the crypto market is perceived to have crashed.
Volatile Nature Of The Crypto Markets
With the exception of stablecoins, all crypto assets are volatile in nature. As a result, these digital currencies are prone to high fluctuations in price. There any negative news or downtrend in the crypto markets will lead to a major sell-off of crypto assets.
Although the Shiba Inu token has not experienced any negative news or breach in the crypto markets. However, it is still subject to the volatile nature of the markets and has suffered dips in price just like many other digital assets due to its own volatile nature.
However, the volatile nature of this crypto asset means that any positive movement in the crypto markets will most likely lead to an increase in its price value.
Shiba Inu burning news
243 million SHIB burned in the last 24 hours however the price will drop to the key support level at $0.000011.
Verdict
The fall in the price of the Shiba Inu token is down to three main factors. The first factor is the recent collapse in UST value. The second is the drop in the value of the leading crypto asset Bitcoin. Third, there are fears over upcoming crypto regulations from governments and their financial regulatory agencies.
There is no way to tell if Shiba Inu or other crypto-assets will continue to lose value. However, some analysts are of the opinion that we are at the start of new crypto winter, and many crypto assets will plummet further in value.
However, many other analysts expect the price of Bitcoin to hold at the $30,000 price range, with many new investors expected to buy the dip. There are also expectations that positive news for the crypto industry can help to halt the current downtrend in the markets.
We can not give a long-term prediction for the price of the Shiba Inu token. However, in the short term, we expect the price of this token to dip further like other volatile assets in the crypto markets.
