⭐️ Shiba Inu in Market: Analyzing SHIB Price Relationship with Bitcoin and Ethereum
Data shows that the Shiba Inu price has closely followed Bitcoin price movements more than any other asset, with SHIB and BTC boasting the highest price correlation matrix over the last 30 days.
Shiba Inu (SHIB) has been a beneficiary and victim of broader market trends depending on their direction. When the market records an uptrend, Shiba Inu typically records price upswings. However, during a market downtrend, SHIB witnesses substantial declines.
🔸 Shiba Inu Trails Bitcoin
This pattern has prevailed throughout this year, with a notable impact in late April. Bitcoin dropped 15% from a $66,000 high on April 23 to a $56,000 floor price on May 1. This value represented Bitcoin’s lowest price in three months.
Interestingly, Shiba Inu followed a similar trail, having collapsed from $0.00002689 on April 23 to a low of $0.00002057 on May 1. This marked a 23.5% drop within the same period that Bitcoin recorded similar downward pressure. The price drop witnessed by Shiba Inu and Bitcoin is a product of their strong correlation.
🔸 Shiba Inu Price Correlation with BTC
Market data sourced by IntoTheBlock shows that Shiba Inu boasts a 79% correlation with Bitcoin in the last 30 days. This indicates that Shiba Inu’s price movements have had a strong positive correlation with Bitcoin’s price movements. In contrast, Cardano (ADA) only has a 62% correlation with Bitcoin within this period.
While this trend can be positive for Shiba Inu, it also paints a concerning picture. For instance, if Bitcoin faces turbulence due to market headwinds, SHIB is not likely to buck the overall market trend. This is observed in recent price action, where Shiba Inu has now dropped alongside BTC
Bitcoin faced major resistance at the $70,000 level yesterday, resulting in a drop toward $68,000. This drop has impacted Shiba Inu’s price, compounding the existing bearish pressure it already faces. SHIB has recorded six consecutive losing days since May 30, down 6.17% this month.
