Cryptocurrencies have had turbulent weeks following the fallout of two crypto-friendly banks in the last week. However, an unlikely yet promising digital asset has emerged – Shiba Inu (SHIB).
The correlation between SHIB and Bitcoin has increased significantly since the beginning of 2023 and has reached its highest level to date. This suggests that the price of SHIB is likely to increase sharply in the short term as investor confidence strengthens.
In the Year-to-Date (YTD) period, on-chain analytics unveil that Shiba Inu’s (SHIB) correlation with Bitcoin (BTC) has become its most robust yet. Crypto data specialist IntoTheBlock reports this link to be 0.8.
Bitcoin is engaged in an impressive uptrend, having grown 8.70% within the past 24 hours and trading at a remarkable $24,364.89. Shiba Inu’s price action doesn’t offer quite as much performance, though, with only 1.78% growth over that same period of time – still a noteworthy increase all the same.
On a weekly comparison, Bitcoin has outperformed with an 8.6% surge in value, while Shiba Inu is experiencing a more modest price rebound. The meme coin does have quite the track record for wild fluctuations and sometimes causes huge spikes in market prices; the current positive relationship to Bitcoin bodes well regardless of its lower rate of growth.
What Factors are Driving the Correlation between Shiba Inu and Bitcoin?
The most noteworthy reason behind the correlation between SHIB and BTC is the trust that investors have placed in the asset. SHIB’s market capitalization has been rising steadily since its launch, with more people viewing it as a reliable store of value despite its meme-like origins.
It is widely accepted that the Shiba Inu token has an outstanding environment in terms of community support and protocol utility. From the recent launch of Shibarium’s beta version to its integration as a payment alternative on multiple web-based stores, SHIB appears likely to experience prolonged growth.
Boasting a price of $0.00001099, Shiba Inu is poised for continuous growth in both the short and long term as deflationary aspects are added to its protocol. Thanks to Shibarium’s capabilities, we can expect Shiba Inu prices to remain strong going forward.
Shiba Inu technical analysis reveals the altcoin is currently trading in an upward trend, as the 50-day Moving Average (MA) has crossed above the 200-day MA to place SHIB in a ‘bullish’ state.
Furthermore, the MACD indicator is also pointing higher, which confirms that Shiba Inu is holding its newfound ground and that its correlation with Bitcoin could continue to strengthen.
