The Shiba Inu price crashed recently, raising concerns among investors about its ability to bounce back and recover from the major low.
According to Coinbase, Shiba Inu’s price is now at $ 0.00003140 with a market cap of $17.2B.
One of the leading cryptocurrencies this year is Shiba Inu. The meme coin has seen an enormous surge backed by crypto traders this year. However, after the value of SHIB skyrocketed in October, it has seen a downward trend.
As a matter of fact, the Shiba Inu coin lost half of its worth in November.
Shiba Inu Price Crash
The Shiba Inu coin had a 43,000,000 percent gain in 2021; however, the meme coin is ending the year with a price crash.
A statistic by The Motley Fool stated that if an investor put $3 in SHIB on January 1st of this year, the return of the Shiba Inu price valuation would be at $1.29 million.
Unfortunately, despite the high, the meme token fell by 62 percent from its all-time high. Growth opportunities like this come very rarely that even the most experienced investors rarely encounter.
Shiba Inu Price
Shiba Inu swept the marketplace a few months ago, and it seemed like everyone was buzzing about it at one point or another.
On October 28th, the cryptocurrency Shiba Inu price was $0.00008870 at an all-time high, resulting in massive profits for early investors. Unfortunately, since then, things haven’t been looking so good.
With the recent Shiba Inu price crash and the whole world seeing how much the meme coin skyrocketed, crypto enthusiasts might be wondering if the recent drop in Shiba Inu’s price indicates a purchasing opportunity, and, of course, if the same spectacular profits can be expected as before.
The most obvious culprit for SHIB’s steep price decline relative to Bitcoin is its volatility.
It is clear that it’s a volatile stock just by looking at its chart even if its beta coefficient is not determined, as another The Motley Fool report stated.
The determination of volatility is the rise of assets several million percentages and declines drastically within half a year.
Furthermore, if the market continues to see a cryptocurrency crash for Bitcoin, and the Shiba Inu coin is more volatile than Bitcoin, a Shiba Inu sell-out would be seen. That is precisely what the cryptocurrency market is witnessing now.
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Shiba Inu’s Market Size
The smaller market size of SHIB explains why it is more volatile. SHIB’s market cap is $21 billion, while Bitcoin’s is around trillion dollars in market capitalization. The smaller the market capitalization of an asset, the more a relatively little purchase can impact its price. For this reason, small-cap stocks are often more volatile than large-cap equities.
SHIB Investing With Uncertainty
Dogecoin and Shiba Inu are popular cryptocurrency coins without a strong foundation, therefore its investors make money by relying on the “greater fool” notion.
This theory proposes that anybody can benefit from a low-quality asset because someone else (the greater fool) will be prepared to buy it for a higher price in the future.
As indicate in another The Motley Fool analysis, the craze dissipates over time. As a result, the number of selling begins to outnumber the number of purchasers, resulting in a crash. In order to avoid being left holding the bag in 2022, new investors should avoid Dogecoin and Shiba Inu.
Shiba Inu Coin has had a difficult couple of weeks, and it may continue to be difficult in the future. With the crypto market as a whole falling apart, anything that may happen for these crypto coins are purely speculative for now.
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