• Shiba Inu, a popular meme coin, has been experiencing a rough time lately due to market FUD and regulatory uncertainties.
• The coin fell by 5.7% in recent 24 hours and 9.8% over the week.
• Massive sell-offs and Biden’s new budget reveal have caused the crypto market to crash below $1 trillion by 7%.
Shiba Inu Price Slump
Shiba Inu, one of the most popular meme coins, has been experiencing a rough time lately. Given that it is primarily driven by hype, the current market FUD created by massive sell-offs and regulatory uncertainties is not doing it any favors. Shiba Inu has lost 5.7% in recent 24 hours and 9.8% during the week.
Bitcoin Price Crash Affecting Other Coins
One of the major reasons why the crypto market is receding is because bitcoin (BTC) is currently trading under $20,000 – dragging other coins along with its large price movements. Additionally, instances of massive sell-offs in the crypto space have occurred recently as Voyager liquidated about $56 million worth of crypto within 24 hours including 400 billion Shiba Inu tokens worth over $4.4 million in their selling spree and still holds other SHIB tokens worth around $44 million.
Regulatory Uncertainties Pushing Crypto Market Down
The crypto market continued to take a pounding following harsh regulations from authorities such as New York Attorney General filing lawsuit against Kucoin dubbing Ethereum as security; White House’s proposal for 30% tax on bitcoin mining; and concerns regarding hiking of fed rates are all negatively affecting the stock market which crashed losing over $2T in US over 24 hours resulting in overall crypto total market cap dropping below $1 trillion by 7%.
The volatility seen across markets combined with regulatory uncertainty has caused investors to become wary leading to Shiba Inu’s slump along with other coins despite its popularity amongst meme traders on social media platforms such as Twitter and Reddit.
It appears that these trends are likely to continue until more clarity around regulation is provided or until Bitcoin begins to stabilize again thus providing some relief for altcoins such as SHIB which rely heavily on BTC’s price movements for directionality