Shiba Inu (SHIB) has experienced a disappointing price run since the highly anticipated Bitcoin halving, dropping nearly 20% in the past week alone. While the halving often triggers an altcoin season, SHIB’s recent slump begs the question: what’s truly behind the decline?
Trading at $0.00002295 , SHIB aligns with the broader crypto market dip following the sentencing of Binance founder CZ. However, its struggles began well before the court case, with a 19.56% drop last week – the second steepest among top 25 coins.
Beyond the Halving Narrative
Traditionally, post-halving periods see investors shifting focus from Bitcoin to altcoins. This time, however, the altcoin season hasn’t materialized. SHIB, despite a brief post-halving surge, has been on a downward trajectory.
Lucie, a key member of the SHIB team, sheds light on the situation, attributing the decline to factors beyond just the halving. She cites post-halving sell-offs and miner adjustments as contributing elements.
While the sell-off could have impacted SHIB, previous halvings saw Bitcoin’s decline benefiting altcoins as investors sought alternatives.
Related: ShibaSwap Unleashes Multi-Chain Power: Boon or Bust for SHIB, BONE, LEASH?
Hong Kong ETF Debut Fizzles
Lucie further points to the underwhelming reception of the recently launched Hong Kong Bitcoin and Ether ETFs. While the impact on SHIB might be minimal, the lack of a significant boost further dampened investor sentiment.
The financial world’s response to potential policy changes and economic forecasts also plays a role. Anticipation of the US Federal Reserve’s interest rate decision amid high inflation has caused stock market jitters, potentially impacting the broader crypto market, including SHIB.
Unveiling the Real Culprits
While the Bitcoin halving and global economic concerns contribute to the overall market dip, SHIB’s specific struggles seem more nuanced. Post-halving adjustments, underwhelming ETF launches, and broader investor uncertainty paint a more complex picture than a simple narrative of altcoin season failing to materialize.
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