The cryptocurrency market is a dynamic one, and price movements by established players like Bitcoin (BTC) can have a knock-on effect on altcoins like Shiba Inu (SHIB).
Bitcoin’s Dominance
Bitcoin occupies a unique position in the digital asset ecosystem. Its price action is often seen as a bellwether for the broader market. In previous bull runs, Bitcoin’s surges to new highs were preceded by similar rallies in altcoins.
Analysts expect a similar trend to occur in the current cycle, predicting that the altcoin season (a period in which altcoins outperform Bitcoin relative to Bitcoin) will occur after Bitcoin peaks.
Predicting Bitcoin's peak
Determining the peak price of Bitcoin in this cycle remains controversial. Although the price of Bitcoin surpassed the peak of the previous cycle at $73,000 in March 2024, many analysts believe there is still room for further gains.
While Bitcoin’s influence is undeniable, it does not dictate the exact trend of altcoins like Shiba Inu. However, by analyzing market capitalization and historical trends, we can make an educated guess about SHIB’s potential price in a hypothetical scenario where Bitcoin is worth $500,000.
Predicting the price of Shiba Inu
Let’s assume Bitcoin reaches $500,000. This would mean a massive increase in its market cap, from the current $1.330 trillion to a staggering $9.85 trillion.
If Shiba Inu’s market cap grows in proportion to Bitcoin’s projected growth (650.7%), its market cap would soar from its current $14.3 billion to a noteworthy $93 billion.
Based on this hypothetical market cap, we can estimate the theoretical price of SHIB. Currently, the circulating supply of Shiba Inu is approximately 589 trillion tokens, and its price hovers around $0.000024. To reach the projected $93 billion market cap, the price per SHIB needs to be adjusted to $0.000166.
It must be acknowledged that these forecasts are highly speculative. The cryptocurrency market is known for its volatility, and there are several factors that can significantly affect the price of SHIB in addition to Bitcoin’s movements. Technological advances, regulatory decisions, and overall market sentiment can all affect Shiba Inu price movements.
