3 Factors Bringing The Shiba Inu and Dogecoin Price Down
Shiba Inu and Dogecoin price has faced a major drop due to the Bitcoin price crash and capital rotation in newly launched tokens.
The crypto market has become an enormous industry with a trillion dollars in market capitalization and millions of crypto tokens to trade into. This has offered great profit-making opportunities, but the volatility has also kept the market humbled with consistent drops. Today is one such day when volatility has spiraled many cryptos, including the two most popular meme coins, Shiba Inu and Dogecoin. In this, the Dogecoin price has plummeted by 5.45%, whereas the SHIBâs price is down by a 3.3% drop.
This Shiba Inu and Doge price drop has confused the netizens as both these popular meme coins have their share of demanding factors. Dogecoinâs trail map update has spoken of increasing the block speed by ten times, whereas the SHIB burn has surged by 2000%. However, despite that, both the tokens are down today, and there are three most prominent reasons behind this.
1. Profit Taking & Capital Rotation In the Market
DOGE and SHIB are among the oldest meme-themed tokens and have maintained a great share of dominance, with the highest market caps in the category. However, with the introduction of new tokens, investors are moving their funds to new ones to gain better profits or find better stability in the versatile market.
In recent, the TRON-based tokens have dominated the market due to their rising hype. Going with this hype, one TRON trader made $7 Million with a simple investment of less than $300. It has caused a significant drop in the DOGS and SHIBâs performance, and the lack of bullish factors has worsened it.
2. Historic September Slump Affected Dogecoin Price
There is an overall drop in the crypto market, where user sentiments have turned to fear in the last few days. This indicates the userâs concern about placing new trades in the market or taking any risks. Moreover, this current decline is part of the September slump, seen almost every year in this month.
The Rekt capital reports revealed that the Bitcoin growth is already in a 6.19% drop within only seven days, confirming the Bitcoin September loss. The report also states how the single-digit downside has been constant for nine years since 2013.
This downside is not only in Bitcoin, as the rest of the altcoins follow the same trend due to Bitcoinâs dominance in the market.
3. Bitcoin Price Crash
Following the Rekt capital report, the Bitcoin price has been struggling in the market for days. The token is presently at $54,252.53 after an 8% drop over the week. However, this is still better, as the token dropped to $53K earlier in the day. More importantly, at the same time, the Dogecoin price has declined to $0.0892, currently at $0.0937, whereas the Shiba Inu price dropped to $0.00001242, currently at $0.00001297.
The entire crypto market is declining, including SHIB and DOGE. It is due to Bitcoinâs ripple effect, where every time BTC puts a poor performance, the rest of the market follows. And now, at the time of reporting, BTC price has recovered, and the same is happening in these meme tokens.
Final Thoughts
The ongoing Shiba Inu and Dogecoin price drop is part of the ongoing crypto market crash, which is fueled by the recent US nonfarm payroll data. Moreover, the Bitcoin price crash and the major fall in the US stock market have made user sentiments turn to fear, restricting the performance of the altcoins. This drop has also confirmed the historical September slump, which has happened nine times in the last 12 years.
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