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Here are Four Main Reasons Bitcoin, Shiba Inu and XRP are Down Today

Sam Wisdom Raphael
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Here are Four Main Reasons Bitcoin, Shiba Inu and XRP are Down Today

The crypto market drop that has impacted assets such as Bitcoin, Shiba Inu and XRP is attributable to four main factors.

The cryptocurrency market has been hit hard recently, with Bitcoin (BTC) and other major digital assets experiencing significant declines. With BTC down 1.65% this morning, the leading cryptocurrency has collapsed 6.11% from the $68K high on July 22.

Altcoins have suffered similar declines. XRP is on the verge of retracing the 3.46% gain yesterday, down by more than 1.5% today. XRP’s saving grace has been the support at $0.60. Meanwhile, Shiba Inu (SHIB) is down 10% from the $0.00001832 peak of July 22 and 2.74% this morning due to its greater volatility.

Notably, four key factors have contributed to this downturn, causing concern among investors and market analysts. Here’s a closer look at what’s happening.

Bitstamp and Kraken Distributing Bitcoin to Mt. Gox Creditors

The defunct Mt. Gox exchange, which collapsed in 2014 after losing 850,000 bitcoins to a major security breach, has finally started repaying its creditors. 

This long-awaited repayment involves distributing 142,000 BTC and 143,000 BCH. Mt. Gox is to distribute the tokens to creditors using centralized exchanges. Exchanges Bitstamp and Kraken are already facilitating the distribution, with Bitstamp having a 60-day window and Kraken up to 90 days to complete the payouts.

Bitstamp has committed to expediting the distribution, aiming to complete it well before the 60-day deadline. Similarly, Kraken is also beginning to release funds. The large volume of Bitcoin entering the market has led to increased selling pressure, contributing to the current market downturn. 

Concerns have emerged that many creditors may opt to liquidate their holdings immediately. However, data shows most Kraken users have held onto their tokens, but this has not mitigated the concerns.

US Stock Market Crash

Another event contributing to the market drop is the performance of U.S. equities. Recently, the US stock market experienced a significant crash, wiping out more than $1.1 trillion in value. 

This loss has impacted traditional financial markets, further spilling over into the crypto scene. Historically, there has been a notable correlation between the performance of traditional markets and cryptocurrencies. 

When the stock market suffers, risk assets like Bitcoin often follow suit as investors liquidate their holdings to cover losses or seek safer investments. The spillover has also contributed to XRP’s and Shiba Inu’s declines.

Decline in S&P 500 and NASDAQ

Amid the stock market crash, both the S&P 500 and NASDAQ indices have experienced their worst performance in the past two years. Market data confirms that the S&P 500 collapsed 2.3% yesterday. 

This decline has further exacerbated the negative sentiment in the market. As major benchmarks of economic health, the performances of the S&P 500 and NASDAQ indices often lead to a broader pullback in various asset classes, including cryptocurrencies.

$4 Billion Bitcoin Options Expiry

Another major factor affecting the crypto market is the imminent expiration of Bitcoin options worth nearly $4 billion. Data from Deribit confirms that Bitcoin has a total open interest of 60,869 options with a national value of $3.9 billion about tomorrow, July 26. The max pain for these options is $63,000.

Bitcoin Options Deribit
Bitcoin Options | Deribit

The potential expiry of this significant volume of options contracts has contributed to the market’s instability, as traders will be forced to either sell their positions or roll them over in accordance with the expiry.

Despite a 65% Drop, Flare Prepares A Phoenix-like Recovery With 90% Upside

Albert Brown
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Despite a 65% Drop, Flare Prepares A Phoenix-like Recovery With 90% Upside

Trapped in a falling wedge, Flare teases a breakout rally with a double bottom reversal at $0.018, bolstering chances of the rally pushing FLR to $0.035.

With a bearish dominant price trend in the daily chart, Flare’s value has declined remarkably from the 52W high of $0.052. Failing to hold the $0.050 psychological milestone, the altcoin drops 62% to hit the $0.018 floor. 

However, the recovery chances for the FLR token are resurfacing in the most unlikely time. With the broader market under intense correction, FLR teases a double bottom reversal to reinstate the bull run. Will Flare surge like a phoenix in a bear market to hit $0.035 this week?

Flare’s Last Attempt At $0.018 To Overcome Supply Pressure 

The declining trend in the daily chart breaks under all the crucial EMAs (20,50,100,200) and multiple support levels to hit $0.018. Further, the contracting volatility forms a falling wedge as Flare approaches the bottleneck portion. 

The recent bear cycle within the wedge accounts for a 9% drop and four consecutive bear candles to test the $0.018 support. However, the previous drop at this support teases a double bottom reversal for a bullish bounce back. 

Flare Price Chart
Flare Price Chart

Currently, the Flare token trades at $0.01839 with a visible lower price rejection in the daily chart. Hence, despite the intraday fall of 4.02%, the reversal chances are significant at the crucial support level.

The daily RSI line shows a positive divergence as it approaches the oversold boundary, supporting the bullish uprising. Conversely, the bearish alignment of the crucial daily EMAs and the constant rejections from the 20D EMA highlights strong overhead supply pressure. 

Will Buyers Overcome the Overhead Supply Pressure?

As per the daily candle, the intraday price action will be crucial in determining Flare’s fate. A lower price rejection sustaining dominance above $0.018 will boost the altcoin for a breakout. 

According to the Fibonacci levels, the reversal-led breakout rally could hit the 38.20% or 50% Fib level for a healthy pullback. Hence, the next target levels for the altcoin are $0.0311 and $0.03510. 

21Shares Says Launching an XRP ETF is Part of Its Vision

Lele Jima
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21Shares Says Launching an XRP ETF is Part of Its Vision

Hany Rashwan, the co-founder and CEO of 21Shares, issues bullish comments regarding the company’s potential launch of a spot-based XRP ETF.

Speaking in an interview with Paul Baron yesterday, Rashwan confirmed that launching a spot XRP ETF is part of the company’s global vision. He made this known when quizzed about the company’s delay in launching an XRP ETF despite a federal court declaring the token a non-security.

21Shares Is Bullish on XRP 

According to him, 21Shares is bullish on XRP, highlighting the company’s position as the world’s largest XRP exchange-traded product (ETP) issuer. The 21Shares Ripple XRP ETP has $69,166,817 ($69.16 million) worth of assets under management (AUM), with a year-to-date return of 7.54%.   

In addition, Rashwan mentioned that his company has conducted numerous studies on XRP. Most of this research suggests that XRP has huge potential for growth as an investment vehicle. 

Furthermore, the 21Shares CEO confirmed that the company is comforted by legal decisions clarifying XRP’s status as a non-security. Such a declaration is imperative for the potential launch of an XRP spot ETF, as it helps eliminate regulatory concerns. 

XRP ETF- A Part of 21Shares Global Vision 

Despite XRP’s non-security status, 21Shares is yet to file with the SEC to launch a spot-based XRP ETF. Nonetheless, Rashwan emphasized that launching an XRP ETF is part of 21Shares’ global vision, extending beyond the United States. 

“I’ll say that it [XRP ETF] is absolutely part of our vision and ambition globally, not just in America,” Hashwan remarked. 

At the moment, 21Shares has two spot ETFs for Bitcoin (BTC) and Ethereum (ETH). The company is also seeking to launch a spot ETF for Solana (SOL), the fifth-biggest cryptocurrency by market cap.

Why 21Shares Chose SOL ETF Over XRP 

It bears mentioning that following the approval of BTC and ETH ETFs, SOL and XRP emerged as favorite ETF contenders.  

Notably, 21Shares and VanEck opted for SOL over XRP. These companies have officially filed with the SEC to launch a spot-based exchange-traded fund for Solana. 

According to Hashwan, the company opted for SOL over XRP due to the similarities between Solana and Ethereum. He contended that the similarities make establishing a case regarding a potential ETF regulatory approval for SOL easier.

“Part of our thinking was Ethereum being approved; Solana is pretty similar in a lot of ways. Sometimes, it could be easier to make a case for something that rhymes with what has been already approved rather than starting from scratch on a new asset,” Hashwan added. 

Top YouTuber Foresees XRP 730% Spike to $5, Citing Bitcoin $120K

Abdulkarim Abdulwahab
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Top YouTuber Foresees XRP 730% Spike to $5, Citing Bitcoin $120K

Prominent YouTuber Altcoin Daily has unveiled his bullish target for XRP this season, projecting an over 700% surge for the altcoin.

In a recent post, the host of Altcoin Daily informed his over 1.6 million followers on X about his outlook for various crypto assets, including XRP. The post underscored the crypto pundit’s bullish aspiration for various altcoins, particularly when Bitcoin establishes an all-time high at $120,000.

At press time, the crypto market king trades at around $64,244, just 12.69% shy of its $73,750 ATH. Altcoin Daily expects to see BTC at $120,000 by next year, which he noted is his peak for the premier crypto. This target would mark an 86.78% growth from Bitcoin’s current price.

Meanwhile, the crypto commentator expects prominent altcoins like XRP, Ethereum (ETH), and Solana (SOL) to experience a more commendable price surge following Bitcoin’s entry to $120K.

Altcoin Daily Targets 730% Surge for XRP

His bullish target for XRP is the $5 price point by 2025. This would substantially mark a new history for the asset, considering its earlier ATH of $3.84. At the time of reporting, XRP exchanges hands at $0.6026, up 3% this week. Attaining $5 translates to an upswing of over 729%.

Notably, this $5 target by 2025 is consistent with the aspirations of conservative analysts in the XRP community. While this tier of market watchers believes it to be a more realistic projection for XRP in this cycle, the ambitious ones have proposed more than $300.

Targets 177% Surge for Ethereum

The Altcoin Daily analyst is eyeing the $8,800 threshold for Ethereum. ETH has tanked significantly in the last 24 hours, trading at $3,174, representing an 8% price collapse.

At this floor price, Ethereum is down 35.18% from its all-time high of $4,891. The altcoin market leader must advance by 177% to achieve a peak of $8,800 by next year.

In May, Geoff Kendrick, a researcher at Standard Chartered, argued that Ethereum would be headed for $8,000 after the U.S. regulator approved ETFs that would directly invest in the asset. 

Remarkably, the approval emerged this week, and Ethereum spot ETFs recorded an impressive debut volume of over $1 billion. It remains to be seen how Ethereum’s price could double in the coming weeks.

Outlook for Other Altcoins

Other notable crypto assets for which Altcoin Daily revealed his 2025 bullish target include Solana ($720), Chainlink ($120), BNB ($1,800), and Cardano ($9).

Notably, the analyst has stressed that the outline figures should not be taken too seriously. He urged crypto enthusiasts not to make investment decisions based on his bullish outlook.

Shiba Inu Makes Crucial Alert Against Threat That Can Drain Wallets

Lele Jima
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0
Shiba Inu Makes Crucial Alert Against Threat That Can Drain Wallets

Shibarmy Scam Alerts, a Shiba Inu community-based scam alert channel, calls attention to deceptive job advertisements capable of draining the wallets of potential victims.  

With the bull market on the horizon, scammers are on the prowl to steal funds from unsuspecting investors. They have launched different tactics to achieve this aim, including running fake giveaways and creating malicious tokens. 

Notably, the latest tactic identified by Shibarmy Scam Alerts involves fake job advertisements requiring applicants to download malicious software on their devices. 

Job-Related Crypto Scam 

The channel pointed out that these bad actors are promoting enticing job opportunities with high pay for performing various tasks, like beta testing games. According to Shibarmy Scam Alerts, scammers advertise the offers across reputable job boards to make them appear legitimate. 

Potential job applicants are asked to install specific software relating to their desired role. For instance, if the job involves beta testing a game, the scammers ask the applicant to download the game application on their device. 

Upon downloading the software, an accompanying malware is secretly installed on the device. This harmful file can compromise the applicant’s device and access their crypto wallets.

Similarly, the malware could be installed as a browser extension to access cryptocurrency wallet extensions, including MetaMask. This extension signs transactions and steals victims’ private keys and seed phrases without their knowledge. 

Tips to Stay Safe 

Interestingly, the channel shared tips to protect job applicants from falling prey to these scam tactics. They include verifying job offers to confirm their legitimacy, downloading software only from official platforms, and frequently reviewing browser extensions.  

Furthermore, Shibarmy Scam Alerts urged crypto users to take their blockchain wallet security seriously. In particular, it recommended the use of hardware wallets for better protection. 

The channel also warned against sharing private keys or seed phrases with anyone, adding that users should constantly review and revoke access to any unrecognized connected apps to their crypto wallets. 

Preventing Scam Recurrence

Meanwhile, Shibarmy Scam Alerts also educated scam victims on how to prevent future recurrence if anyone has already fallen prey to these schemes. It recommended removing malicious softwares through comprehensive antivirus and anti-malware scans. 

Victims are also advised to uninstall and reinstall web browsers and extensions. This step includes reconfiguring wallet extensions. 

Additionally, the channel advised creating a new wallet and moving the remaining funds from the compromised wallet to it. It urged victims to monitor the new wallet constantly for unauthorized access or transactions. 

Lastly, it suggested that victims should be wary of crypto recovery services, as most of them are scams. The channel acknowledged the existence of legitimate crypto recovery services. However, it highlighted the high cost of recovering stolen cryptos. 

Moreover, to protect others, the channel recommended that victims report the malicious job advert and inform other users. 

Cardano Founder Hints at ADA ETF Amid Ethereum Launch Excitement

Albert Brown
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Cardano Founder Hints at ADA ETF Amid Ethereum Launch Excitement

Cardano founder Charles Hoskinson hints at a potential ADA ETF as the spot crypto ETF race intensifies following the launch of Ethereum ETF products.

The cryptocurrency spot ETF race is further intensifying, with Ethereum’s spot ETF recently starting to trade. The focus now shifts to ADA.

Cardano founder Charles Hoskinson hinted at this potential development. He responded to a query from Tap Tools with a playful GIF, suggesting ADA might be in the race for the next cryptocurrency to secure a spot ETF.

Community Reactions and Speculations

However, amid this positive speculation, Hoskinson’s response generated further discussion within the Cardano community. A member inquired about securing a stablecoin for Cardano with liquidity and an on/off ramp through a partnership with exchanges that would list Cardano native tokens. In response, Hoskinson supported this idea.

This community member later emphasized the need for partnerships, specifically mentioning USDC or USDT and a partnership with Coinbase or Binance. 

Despite the positive sentiment on Cardano from some community members, others expressed concerns. One commenter highlighted the potential centralization risk posed by an ETF, which could threaten Cardano’s decentralized system. 

Industry Leaders Weigh In

Tesla Motors CEO and X CTO Elon Musk was mentioned in a tweet on July 23, which claimed he had announced Cardano (ADA) as the official payment rail for X. However, this tweet was obviously edited likely for comical effect.

Further, Brad Garlinghouse, CEO of Ripple Labs, had expressed confidence in the SEC’s potential approval of spot ETFs for Cardano, along with Solana and XRP. Garlinghouse suggested that more crypto ETFs might launch following Ethereum and Bitcoin ETFs.

He acknowledged the regulatory challenges these products might face, predicting a lengthy approval process. This was observed with Bitcoin ETFs, which faced multiple rejections, and Ethereum ETFs, which experienced delays.

Cardano’s Upward Trajectory

Meanwhile, from a price perspective, Cardano has been on an upward trajectory since July 5, mirroring broader crypto market trends. Over the last two weeks, ADA prices have increased significantly, reflecting the positive market sentiment. 

For instance, a chart shared by The Crypto Basic last week indicated that ADA prices had surged by 44% from the monthly low recorded on July 5. However, mixed signals have emerged as bulls and bears struggle for dominance within the Cardano ecosystem.

Solana at Risk of a Correction Wave to $150 Amid Ongoing Crypto Market Crash

Albert Brown
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Solana at Risk of a Correction Wave to $150 Amid Ongoing Crypto Market Crash

As the ongoing crypto market crash intensifies the retest in Solana prices, buyers struggle to hold prices at $170 amid a recent 4% intraday drop.

Amid the broader market correction, the intense surge in supply wave liquidates $157M worth of long positions in the last 12 hours. Ethereum is taking the biggest hit, with $100M worth of bullish positions liquidating in the last 24 hours. Amid this, the Ethereum-killer, Solana, shares a similar fate with almost $10M long positions wiping out as SOL drops to $170.

Despite the bearish influence over the market, top analysts and the price action analysis offer a potential bounce back. Will Solana survive the market crash to top $200 in 2024?

Solana Clings To $170 As High Supply Retest Warns Failed Breakout

Despite forming two massive bullish candles to break a resistance trendline, the broader market fallout could result in a failed uprising in Solana. In the weekly chart below, the surprising 40% surge in two weeks fails to sustain momentum as it drops 7% this week. 

Solana Price Chart
Solana Weekly Price Chart

As seen in the chart, Solana is currently in the retest phase. However, a lower price rejection is visible on the chart, but the crashing prices now warn of a failed breakout.

Currently, Solana trades at $171 with an intraday drop of 4.20%. Further, the piercing bearish candle is a product of the FUD crash and warns of slippage under the broken trendline. 

Negating the breakout, the downfall could potentially result in an intense, extended correction that might lose the $150 psychological mark. 

As per the momentum indicators, the MACD and signal lines are ready for a bullish crossover to support the breakout rally. Meanwhile, the daily RSI line sustaining above the halfway line reveals sufficient demand. 

Recovery Chances Visible on Smaller Timeframes for Solana

In the 4H chart, the SOL trend breaks under a long-coming support trendline with a massive 4.19% drop. Undermining the previous day’s surge, the bearish engulfing candle now tests the 50D EMA and the $169 support zone. 

Solana Price Chart
Solana Price Chart

Currently, Solana forms a green Doji candle at a critical support area, increasing the chances of a bounce back to retest the broken trendline. However, a relief rally in the broader market could fuel the bounce back in Solana to surpass the $180 mark. 

Will SOL Price Recovery Head to $200?

The market-wide correction spree is causing additional stress over altcoins, which has led to Solana crashing to $170. However, multiple bullish elements holding the fort to avoid further correction increase the likelihood of a reversal. 

As per the Fibonacci levels in the weekly chart, the post-retest reversal rally could pump Solana to surpass the 78.60% Fib level at $198. Thus, the next potential target for SOL is $198 and $249. 

Conversely, if the intense supply results in a failed breakout run, the next support levels are at $162 and $155. 

XRP Set for Major Surge: Analyst Says Third Elliott Wave Could Hit $22

Sam Wisdom Raphael
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XRP Set for Major Surge: Analyst Says Third Elliott Wave Could Hit $22

Market analyst Charting Guy has projected a bullish trajectory for XRP, highlighting the potential for price surges driven by Elliott Wave theory. 

He made this assertion while analyzing XRP’s recent price movements on X. According to his projection, XRP is currently in the early stages of its third wave, a phase that historically signifies robust upward momentum.

Notably, XRP faced a significant downturn earlier this month, collapsing to a 16-month low of $0.3825 on July 5. This decline was triggered by a broader market downtrend, catalyzed by the German government’s Bitcoin sales. The drop marked the lowest price for XRP this year and the first time it traded below $0.40 since March 2023.

However, XRP has since staged an impressive recovery. From its $0.3825 low, XRP has risen to $0.6029, marking a 57.6% increase. This rebound aligns with the start of the third wave, as indicated by Charting Guy’s analysis.

XRP Elliott Wave Analysis

Charting Guy’s 2-day chart reveals the completion of Wave 2 with the July 5 drop to $0.3825. His projections suggest that XRP is now embarking on Wave 3, which is anticipated to push prices up to $6. 

 

Wave 3 is usually the most bullish wave. Several analysts have in the past predicted multiple bullish targets for XRP amid this third Elliott Wave. Last December, market watcher CryptoBull suggested that the Wave 3 could take XRP to $27. Most recently, Cryptobilbuwoo proposed that this wave could push XRP to a range of $21 to $45.

Meanwhile, following Wave 3, Charting Guy predicts a corrective Wave 4, which might see some price consolidation or a minor pullback. However, the overall bullish trend is expected to continue with Wave 5, potentially driving XRP prices to an impressive $22. 

Charting Guy confirmed that Wave 5 does not necessarily have to push XRP toward the $20 price level. According to him, this represents the most optimistic target. He sees a price goal of $8 to $13 as the more feasible main target.

XRP’s Current Position 

A closer look at XRP’s daily chart indicates that the token is currently in a bullish but decisive positive. The chart incorporates Bollinger Bands and the Average True Range (ATR) indicator.

XRP Daily Chart
XRP Daily Chart

The Bollinger Bands show that XRP’s current price of $0.6029 is between the upper band at $0.6759 and the middle band at $0.5324, reflecting a relatively stable volatility range. This suggests a bullish sentiment as the price gravitates towards the upper band, with the lower band positioned at $0.3890.

The ATR, a volatility indicator, currently stands at 0.03496. This value indicates the average range of price movement over a specified period, suggesting a moderate level of market volatility. A higher ATR typically signifies increased volatility, which can be associated with significant price movements.

Ripple CEO Cautions Against Making Premature Judgments About US Presidential Candidate Kamala Harris

Lele Jima
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0
Ripple CEO Cautions Against Making Premature Judgments About US Presidential Candidate Kamala Harris

Ripple CEO Brad Garlinghouse advocates for a policy-focused approach to evaluating political candidates, especially in the upcoming U.S. Presidential election. 

The Ripple CEO made this suggestion while reacting to comments from Paradigm’s Policy Director Justin Slaughter. 

Paradigm Exec Highlights Immediate Changes Under Harris Nomination 

In a recent X post, Slaughter spotlighted the immediate changes U.S. Vice President Kamala Harris implemented following her nomination as the Democratic Party’s presidential candidate. 

According to Slaughter, Harris is already signaling that core national security advisors under the Biden administration may not continue their roles if she is elected president of the United States. He proposed that the Harris administration drop everyone under the current Biden administration for a robust reset.

Ripple CEO Kicks Against Hasty Assessment 

Reacting, the Ripple CEO cautioned against making premature judgments on the basis of political affiliations instead of actual policy proposals. He asserted that this tendency and tribalism have continued to hinder the progress of the broader crypto industry.  

Nonetheless, Garlinghouse expressed optimism about Harris’ familiarity with Silicon Valley, suggesting that she could be instrumental in addressing critical issues affecting U.S. competitiveness, specifically focusing on crypto regulation. 

Furthermore, while the Ripple CEO expresses openness to Harris’ upcoming policies, he hinted at concerns about her potential adoption of a rhetorical style akin to that of anti-crypto senator Elizabeth Warren. 

Ripple Exec Labels Gensler a Political Liability

Garlinghouse emphasized that if Harris’ approach mirrors that of Warren, then she has miscalculated the political liability that SEC Chair Gary Gensler is. 

It bears mentioning that crypto enthusiasts see figures like Warren and Gensler as detrimental to the industry’s progress. While Warren has been advocating for policies considered anti-crypto, Gensler has brought a series of enforcement actions against crypto-related companies. 

Consequently, Ripple executives, including Garlinghouse, refer to Gensler as the political liability of the Biden administration. 

How Crypto Voters Could Choose 

Biden’s anti-crypto stance, led by Gensler, has negatively impacted Democrats’ image within the tech circle, with many suggesting that these stringent policies are capable of stifling innovation in the United States.

Prior to Harris’ nomination as Democratic presidential candidate, the majority of crypto voters had already thrown their weight behind Donald Trump of the Republican Party, who has promised unwavering support for the industry if elected president.

It is unclear how Harris’ nomination could influence crypto voters’ decisions in the upcoming election. However, most crypto enthusiasts will support any presidential candidate who could introduce the highly anticipated favorable regulations for the industry. 

Here is New Price of Shiba Inu and Reduction of Zeros If Ethereum Hits $5T Market Cap as ETH ETFs Trading Starts

Sam Wisdom Raphael
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Here is New Price of Shiba Inu and Reduction of Zeros If Ethereum Hits $5T Market Cap as ETH ETFs Trading Starts

Should Ethereum’s market cap reach $5 trillion following the ETF approval, the Shiba Inu price could reach unprecedented levels if it follows ETH’s trajectory.

The Ethereum ETF products began trading on July 23, having secured the final approval from the U.S. SEC. On their first day of trading, the nine ETFs witnessed $106.8 million in net inflows. In addition, trade volume hit an impressive $1.112 billion. Following the netflows, the products now boast $10.2 billion in assets.

These debut figures exceeded expectations, bolstering confidence in the future performance of the products. Amid the optimism, bullish sentiments around Ethereum have picked up. Notably, Citi expects the Ethereum ETFs to see $5.4 billion in net inflows for the first six months. In addition, analysts project a $5,000 target for ETH.

Shiba Inu and Ethereum Price Correlation

This is one of multiple projections around Ethereum. Interestingly, should the crypto token record any of these rallies, the phenomenon could positively impact other assets like Shiba Inu. This is due to Shiba Inu’s correlation matrix with Ethereum, which IntoTheBlock puts at 88% over a 60-day period. 

Shiba Inu and Ethereum Price Correlation Matrix ITB
Shiba Inu and Ethereum Price Correlation Matrix | ITB

This entails that Shiba Inu witnesses a price spike whenever Ethereum increases in value. This pattern is illustrated in a CoinMarketCap chart featuring both assets. Notably, over the past week, SHIB and ETH have moved side-by-side. However, Shiba Inu typically sees higher price swings due to its greater volatility.

Shiba Inu’s price could reach unprecedented levels if it follows ETH’s trajectory, should Ethereum hit a $5 trillion market cap following the ETF approval.

Shiba Inu Price if ETH Hits $5T Market Cap

Citing this correlation, The Crypto Basic assessed how much Shiba Inu could rise if it trails Ethereum’s trajectory in the event that ETH’s market cap reaches $5 trillion. Ethereum’s market cap, currently at $405.7 billion, would reach $5 trillion if the ETH price spiked to $41,587. This evaluation assumes that the 120 million ETH supply remains stable. 

Meanwhile, Ethereum currently changes hands at $3,375. For the price to reach the $41,587 target from this level, it must rally by as much as 1,132%. Interestingly, if Shiba Inu follows a similar path, its price would jump from the current $0.00001711 to a new all-time high of $0.0002108. SHIB’s market cap would amount to $124 billion at this price, exceeding BNB’s current market cap. SHIB will lose one zero in such a case if it rises by 1,132%.

However, should Ethereum reach this target price, could Shiba Inu’s rally exceed 1,132% due to greater volatility? Nonetheless, despite how enticing this evaluation is, it is important to note that Ethereum might not hit the $5 trillion market cap. Even if it does, SHIB’s price might not follow Ethereum’s path due to its unique sentiments.

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