According to data from IntoTheBlock, the 30-day price connection between Shiba Inu and Bitcoin was only 0.25, or 25%. This may signal a decoupling from Bitcoin’s price action, suggesting that SHIB’s price movement is less likely to be influenced by the overall market. This also shows that the Shiba Inu price may be prepared to make a “distinct” move if this trend continues.
Comparatively, the 30-day Bitcoin correlation for stablecoins Tether (USDT), USDC, and Binance USD was 0.21, 0.23, and 0.27, respectively. Other assets, such as Polygon (MATIC), exhibited a correlation of up to 0.96 with Bitcoin.
The Bitcoin Correlation
According to IntoTheBlock, the “correlation to Bitcoin” indicator is beneficial for analyzing how the price of an item fluctuates in connection to the price of Bitcoin. As the cryptocurrency market is still in its infancy, the majority of assets have a high correlation with Bitcoin, meaning that their prices are expected to move in tandem with Bitcoin’s. Although this is not always the case, investors must monitor the evolution of these connections over time.
For investors seeking to diversify their portfolios in the event that Bitcoin’s price underperforms, crypto assets having a low or negative correlation to Bitcoin may be beneficial hedges.
In early August, the price of Shiba Inu suddenly dissociated from Bitcoin and the rest of the pack following an astonishing 35% increase. According to on-chain analytics firm Santiment, the Bitcoin price remains disappointing as traders turn their focus to alternative cryptocurrencies. “Since temporarily exceeding $25,000 on August 14th, Bitcoin has declined.
As traders have shifted their focus to Ethereum and altcoins, the majority of BTC transactions are occurring at a loss. This is the lowest profit-taking ratio in recorded history “A recent tweet from Santiment. At the time of publication, SHIB was trading at $0.0000131, down 1.22 percent. 100 million SHIB were squandered in two trades.
Fast Fact: A $100 investment in Shiba Inu made on August 1, 2020 would be worth $14,045,098 today.
The Burn
According to Shibburn Twitter, more than 100 million Shiba Inu have been shipped to be burned in two separate transactions during the past few hours. This was accomplished in increments of 49,896,943 and 49,927,430 SHIB, respectively. During the preceding twenty-four hours, 213,067,021 SHIB were used, representing a slight increase in the Shiba Inu burn rate.
This statistic could suggest that SHIB is prepared for a distinct move upwards or at the minimum it looks to be solidifying its current price range of $0.000013 – $0.000015.
This article is provided for educational purposes only and is not an inducement to invest in any cryptocurrency. As always, do your own research and never invest more than you can afford to lose. The author holds SHIB as part of a broader investment portfolio.
I write about blockchain, crypto, NFTs and other disruptive technologies and innovations.
