Shiba Inu (SHIB), a prominent memecoin, has experienced renewed selling pressure, with its price dropping below the $0.000005 mark in line with a broad market downturn.
Memecoin under pressure as market takes a hit
Data from CoinGecko indicates that SHIB’s price has declined by 5.5% over the past 24 hours and is down nearly 10% for the week. Over a 14-day period, the cryptocurrency has fallen 5.4%. Despite the most recent losses, SHIB remains more than 10% higher compared to its price level a month ago.
The price slide followed the US Senate’s decision to reject the CLARITY Act. Meanwhile, Bitcoin (BTC) fell back to the $75,000 level after previously reaching $81,000, with other digital assets echoing BTC’s downward trend.
| Asset | 24 Hour Change | 7 Day Change | 14 Day Change | 1 Month Change |
|---|---|---|---|---|
| Shiba Inu (SHIB) | -5.5% | -10% | -5.4% | +10% |
| Bitcoin (BTC) | Declined to $75,000 | From $81,000 peak | N/A | N/A |
Investor sentiment and macroeconomic factors
Investor risk appetite has slowed considerably in recent days. As a memecoin, SHIB is generally considered a higher risk asset within the cryptocurrency sector. Market conditions have led investors to shift away from higher risk assets as uncertainty mounts.
An upcoming Federal Open Market Committee (FOMC) meeting is fueling speculation about the potential for higher US interest rates. Federal Reserve Chair Kevin Warsh delivered a hawkish address at the Jackson Hole meeting, signaling that the central bank may raise rates later this month in response to recent jobs data. Elevated interest rates typically result in a greater preference for safer investments, making riskier assets like SHIB and other memecoins less attractive.
Mini dictionary: Federal Reserve Chair, the head of the central banking system of the United States, is responsible for overseeing US monetary policy and leading the Federal Open Market Committee, which determines the direction of interest rates.
Federal Reserve Chair Kevin Warsh gave a hawkish speech at Jackson Hole, indicating that another interest rate hike may be likely following recent employment data.
Analysts consider long-term outlook
Although short-term volatility persists, some analysts expect the broader cryptocurrency market to recover later this year. Bernstein, a global investment firm, forecasts that Bitcoin could reach the $100,000 level by the end of 2026. Such a move may trigger renewed optimism for digital assets, including SHIB.
If Bitcoin achieves this milestone and the overall market sentiment improves, SHIB could, according to analysts, regain its previous $0.00001 level.
Bernstein projects that if Bitcoin returns to $100,000, it could set off a bull run across the crypto sector, with SHIB benefiting from revived investor interest.
