Why is the Shiba Inu (SHIB) Price Down Today?

05.07.2024 / Payment system news

TL;DR

  • The cryptocurrency market, including major coins like Bitcoin and Ethereum, is in a significant decline, with Shiba Inu (SHIB) dropping 15% in the past 24 hours and almost 50% this month.
  • Only 20% of SHIB investors are currently profitable, emphasizing the high risk and volatility associated with meme coins.

Shiba Inu Bloodbath

The cryptocurrency market has been in a state of freefall in the past several days, with the negative trend intensifying today (July 5). As CryptoPotato reported, Bitcoin (BTC) plunged below $54,000 for the first time since February, while Ethereum (ETH) crashed under $2,900.

The situation in the meme coin realm is no better. The sector’s market capitalization is down almost 20% daily, currently standing at around $38.8 billion (CoinGecko’s data). Leading assets such as Dogecoin (DOGE), Pepe (PEPE), dogwifhat (WIF), Floki Inu (FLOKI), and many more are down by double digits.

The self-proclaimed Dogecoin-killer – Shiba Inu (SHIB) – is also deep in the red. Its price has crashed by 15% in the past 24 hours and almost 50% monthly. Its market cap tumbled below the $8 billion mark.

SHIB Price, Source: CoinGecko

The latest collapse has negatively affected numerous SHIB investors. According to IntoTheBlock, only 20% of all HODLers are currently sitting on paper profits, while over 52% are underwater.

The picture looked much more optimistic in March this year when the meme coin was experiencing a substantial bull run. Back then, more than 63% of those exposed to SHIB were in the green. 

Remember the Risks Involved

Meme coins were crypto’s rock stars in the past several months, with countless tokens witnessing impressive price spikes and benefiting savvy traders who entered the ecosystem at the right time.

However, the recent decline of the entire meme coin cohort comes as another warning that hopping on the bandwagon could lead to crucial losses due to the infamous volatility of the asset class.

Those about to dive in should conduct proper research, rely on identified sources, and invest only as much as they are ready to lose. If you want to learn more vital tips, please take a look at our dedicated video below:

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