Is it possible that a coin worth less than .0001 per token is bringing down BTC today?
According to crypto market analyst Lark Davis, “Shiba Inu’s (CRYPTO: SHIB) massive rally could be a sign of “overheated markets,” as Bitcoin (CRYPTO: BTC) shed 6% of its value, dropping to $58,800 on Wednesday.”
While Bitcoin had a bad day, SHIB is up more than 30% for the past 24 hours and 140% for the week.
Davis speculated that meme coins led by Shiba Inu are having a direct impact on Bitcoin. He pointed out that “when “dog coins” such as Shiba Inu and other Dogecoin (CRYPTO: DOGE) cryptocurrencies skyrocket, historical data indicates markets are overheated.” He bases this on historical data going back to April when there were big dog coin pumps. It happened again in September. It is happening now. Then there is a cooling off period and things get back to normal for Bitcoin.
My non-professional advice? If you are in on SHIB now, it might be time to reap a few profits. When it cools down, buy the dip. If you haven’t bought SHIB yet, buy the next dip. It might not be a big one either and it might not last long. The SHIB community is on fire. Most are hodling for bigger gains.
To think that a coin like SHIB that is worth less than .0001% could have an impact on BTC, the gold standard and granddaddy of them all, just demonstrates how quirky and interesting the markets are and how powerful trading volume is. When looking for an investment, trading volume means a lot more than price in terms of solidarity of the coin and the potential for profits.
According to Benziga, SHIB had a daily trading volume that was more than SOL, ADA, and XRP combined. That is huge. I cannot wait to see what happens next in this crazy world of meme coins. DOGE is doing well today too. Musk is still a big DOGE fan and has yet to jump on board with SHIB. Perhaps he is upset he didn’t get in sooner.
I am upset I didn’t get in sooner too. I bought in August. I have gained 700% during this time. Not bad. I wish I could say that all of my investments were so successful. This one for me eases the pain of some losses I have had over the past few months. While SHIB is not technically, "pulling down Bitcoin," for the short term at least, it is outperforming.
As always DYOR, buy, sell, and exchange at your own risk.
The Lynx
Art Lynx (@ArtLynx1) / Twitter
