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Data shows that the Shiba Inu price has closely followed Bitcoin price movements more than any other asset, with SHIB and BTC boasting the highest price correlation matrix over the last 30 days.
Shiba Inu (SHIB) has been a beneficiary and victim of broader market trends depending on their direction. When the market records an uptrend, Shiba Inu typically records price upswings. However, during a market downtrend, SHIB witnesses substantial declines.
Shiba Inu Trails Bitcoin
This pattern has prevailed throughout this year, with a notable impact in late April. Bitcoin dropped 15% from a $66,000 high on April 23 to a $56,000 floor price on May 1. This value represented Bitcoin’s lowest price in three months.
Interestingly, Shiba Inu followed a similar trail, having collapsed from $0.00002689 on April 23 to a low of $0.00002057 on May 1. This marked a 23.5% drop within the same period that Bitcoin recorded similar downward pressure. The price drop witnessed by Shiba Inu and Bitcoin is a product of their strong correlation.
Shiba Inu Price Correlation with BTC
Market data sourced by IntoTheBlock shows that Shiba Inu boasts a 79% correlation with Bitcoin in the last 30 days. This indicates that Shiba Inu’s price movements have had a strong positive correlation with Bitcoin’s price movements. In contrast, Cardano (ADA) only has a 62% correlation with Bitcoin within this period.
While this trend can be positive for Shiba Inu, it also paints a concerning picture. For instance, if Bitcoin faces turbulence due to market headwinds, SHIB is not likely to buck the overall market trend. This is observed in recent price action, where Shiba Inu has now dropped alongside BTC.
Bitcoin faced major resistance at the $70,000 level yesterday, resulting in a drop toward $68,000. This drop has impacted Shiba Inu’s price, compounding the existing bearish pressure it already faces. SHIB has recorded six consecutive losing days since May 30, down 6.17% this month.
The Crypto Basic confirmed earlier that Shiba Inu has a history of recording losses in June. Notably, Bitcoin has not recorded as much loss as Shiba Inu during the ongoing downturn due to its greater resilience. SHIB typically features higher volatility. As a result, during market declines, it faces steeper drops.
However, this also means that Shiba Inu witnesses higher price surges during an uptrend. For instance, SHIB spiked 370% between late February and early March to $0.000045. Meanwhile, Bitcoin only saw a 33% increase within this timeframe.
Shiba Inu Price Poised for Follow BTC’s Upsurge
SHIB’s high correlation with BTC is a generally positive sign, especially with Bitcoin poised to reach greater heights. As a result, analysts who have projected lofty BTC prices for this market cycle also believe Shiba Inu would record greater rallies. Market pundit Armando Pantoja expects SHIB to hit $0.001 when BTC reaches $100,000 to $250,000.
Meanwhile, Shiba Inu only has a 69% price correlation with Ethereum (ETH) and a 73% correlation with Dogecoin (DOGE). SHIB currently trades for $0.00002383, with its Accumulation/Distribution metric indicating a sharp drop in investor holdings, having collapsed from 28 trillion SHIB on May 28 to the current figure of 12.6 trillion.