Shiba Inu’s Downturn Explained: SHIB Team Provides Perspective on Recent Decline

• Shiba Inu (SHIB) has tanked since the Bitcoin halving, defying the cyclic trend where altcoins spike following the halving as BTC investors seek better returns elsewhere.
• The Shiba Inu team attributes the dip to factors beyond the meme coin, such as the disappointing debut of the Hong Kong ETFs and policy and economic forecasts.

Shiba Inu has been on a disappointing price run since the Bitcoin halving; in the past week, SHIB has lost close to 20% of its value. However, according to a key member of the meme coin’s team, SHIB’s downturn has more to do with macro factors, such as the Bitcoin and Ether ETFs in Hong Kong and an overall dip in crypto prices.

SHIB trades at $0.00002102, losing 6% in the past day. This aligns with most major cryptos, which all dipped after Binance founder CZ’s sentencing in a Seattle court. As Crypto News Flash reported, CZ only got four months behind bars, but the market immediately soured, with Bitcoin almost instantly dipping below $60,000.

However, SHIB’s losses started long before the CZ sentencing. In the past week, the meme coin lost 19.56%, the second steepest decline among the top 25 coins. The only crypto that fared worse in that period was fellow meme coin DOGE, which lost 21%.

Why Shiba Inu (SHIB) Dipped 20% in A Week

Historically, the altcoin season kicks off following the Bitcoin halving as investors dump their BTC and opt for other assets. However, this time, it’s different. While Bitcoin has dipped to $57,000 at press time, the altcoins have not spiked.

Shiba Inu’s price is a prime example. Immediately after the halving, it spiked by close to 20%, but it has been on a downward spiral since then.

According to a key member of the SHIB ecosystem, the token’s price is down to other factors beyond it. Known only as Lucie, the marketing lead at SHIB.io attributed the price dip to factors such as post-halving sell-off and miner adjustment.

While the sell-off could have spilt over to SHIB, in previous cycles, the BTC sell-off usually benefits the altcoins as investors divert their Bitcoin investment to these alternatives.

Lucie further blamed the drop on the Hong Kong ETFs. As Crypto News Flash reported, the ETFs debuted this week, but the reception was underwhelming, especially compared to their US counterparts. However, the Hong Kong ETFs only involved Bitcoin and Ether, and their effect on SHIB was minimal at best.

Lucie also blamed the financial world’s response to policy changes and economic forecasts. The US economy awaits the Federal Reserve’s decision on whether to raise rates amid high inflation. This uncertainty has caused the US stock market to underperform this week, with the S&P and the Dow Jones dipping on Tuesday.

However, once again, the Fed’s rates decision has little impact on SHIB individually. If anything, it would affect Bitcoin the most as it has the most institutional investors.