Shiba Inu could explode 5000%, and bitcoin plays a role in that - asset manager
SHIB/USD
-5,45%
Investing.com – The crypto space is full of exciting events and unexpected surprises. One of the most intriguing theories right now involves the meme coin Shiba Inu (SHIB). If SHIB maintains its strong correlation with Bitcoin, it could see a rally of over 5,000%. But how much of this scenario is feasible, given VanEck’s recent Bitcoin predictions?
VanEck, known for its bitcoin ETFs and $108 billion in assets under management, recently released a very optimistic forecast. The firm predicts that bitcoin could reach a market cap of $61 trillion by 2050.
LEARN MORE: What are Bitcoin ETFs: Complete Guide
This estimate assumes that Bitcoin will process 10% of international payment transactions and that central banks will hold 2.5% of their assets in BTC. In this context, the price of one Bitcoin could reach a staggering $2.9 million.
One of the most notable characteristics of Shiba Inu is its high price correlation with Bitcoin. According to data from IntoTheBlock, Shiba Inu has shown an 85% correlation with Bitcoin over the past 30 days. If Bitcoin does indeed achieve the 5,600% increase predicted by VanEck, SHIB could rise by the same amount.
If this correlation continues, Shiba Inu could reach a market cap of $436.05 billion, taking its price to an all-time high of nearly $0.00074. This would represent a notable increase of over 5,000% from its current price, as reported by Lele Jima of TheCryptoBasic.
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Despite the appeal of these predictions, it is important to be cautious. The idea that bitcoin will power 10% of global payments trade and that central banks will hold 2.5% of their assets in BTC seems overly optimistic at the moment. Cryptocurrencies are volatile and face regulatory uncertainty. Furthermore, bitcoin transactions are slow and expensive, which makes Ripple’s XRP, which is designed for cross-border transactions, a more viable option for this purpose.
Shiba Inu also faces challenges of its own, with a drastic decrease in trading volume and low on-chain activity indicating a decline in market interest. A lack of liquidity could keep SHIB stuck in a narrow trading range, making it difficult to generate the momentum needed for a significant rally. Even with supportive initiatives like the SHIB burn program, it remains to be seen whether SHIB can overcome its hurdles.
While some enthusiasts project a SHIB price of $0.01 or even $1, such targets are difficult to achieve given the current market dynamics. With a current supply of over 589 trillion SHIB tokens, a $1 price would result in a market cap that would exceed the global equity of $454 trillion. Therefore, such valuations seem not only unrealistic, but downright impossible.
The correlation between Shiba Inu and Bitcoin opens up fascinating possibilities, but the projections should be taken with a grain of salt. While a significant rise in SHIB is not impossible, many variables and uncertainties remain. Investors should consider both optimistic scenarios and realistic challenges.
