Shiba Inu (SHIB) is following the market wide price crash, falling below the $0.000005 level once again. CoinGecko data shows that SHIB’s price has fallen by 5.5% in the last 24 hors, nearly 10% in the last week, and 5.4% in the 14-day charts. Despite the price dip, SHIB is still up by more than 10% over the previous month. Let’s discuss why Shiba Inu (SHIB) is down today, and if its price will recover soon.
Shiba Inu Crashes Again: Will It Recover?
SHIB’s latest price crash comes after the US Senate voted against the CLARITY Act. Bitcoin (BTC) fell to the $75,000 price level after its recent ascent to the $81,000 mark. Other assets are also following BTC’s trajectory.
Risk appetite among investors is considerably low right now. SHIB is a memecoin and carries some of the highest risks in the market. It is unlikely that investors will put their capital in a memecoin given the larger market environment.
There is also a high chance that the Federal Reserve will raise interest rates after its next FOMC (Federal Open Market Committee) meeting. Shiba Inu (SHIB) could suffer because of this. Federal Reserve Chair Kevin Warsh’s hawkish speech at the Jackson Hole meeting was another sign that the Fed may raise rates later this month. The August jobs data was another factor that could lead to higher interest rates. Higher rates often leads to less risky investments. Shiba Inu (SHIB) and other memecoins could take a hit if rates are raised further.
Also Read: Should You Invest in Shiba Inu in September 2026? (SHIB)
Shiba Inu (SHIB) could see some positive price action later this year. Many analysts anticipate the cryptocurrency market to gain momentum by the end of 2026, with Bernstein predicting Bitcoin (BTC) to reclaim the $100,000 level. BTC hitting $100,000 could trigger a bull run for the cryptocurrency market. SHIB could potentially reclaim the $0.00001 price level under such circumstances.
Credit: Source link