The crypto market has seen a relief rally, pushing Bitcoin’s price close to $24,000 over the weekend. The trend of capital flow from large-cap tokens to smaller, meme coins has been noted, leading analysts to predict further gains in the altcoin market.
The recent intervention by governments in the FTX and Alameda crisis has added optimism to the crypto market in the early stages of 2023. However, the potential risk of a global market recession continues to pose a threat to the sustainability of the crypto rally in the near future. Additionally, crypto miners and short-term holders are reportedly taking profits at a rapid pace.
Will Shiba Inu ‘Play By The Rules’?
Shiba Inu, a top meme coin based on Ethereum, has seen exponential growth in the past driven by speculation. However, with the emergence of many new meme coins with similar features, Shiba Inu has shifted its focus to developing scalable and secure decentralized financial applications. This has resulted in increased adoption by institutional investors, including Robinhood Markets Inc. (NASDAQ: HOOD).
As more institutional investors get involved, Shiba Inu will become increasingly subject to macroeconomic factors, like Bitcoin and other leading digital assets. Shiba Inu traders are closely monitoring the Federal Reserve’s interest rate statement, expected on Wednesday.
With an anticipated bump in interest rates this year, the overall result will be a weakening dollar against global currencies. As such, Shiba Inu traders anticipate more cash to flow in, which could significantly boost its underlying value. Moreover, the Shiba Inu community is eagerly awaiting the launch of the Shibarium layer 2 scaling solution to initiate more token burns and attract more on-chain users.
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