Why Shiba Inu Crypto Fired 30% Higher Today

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What happened

The Shiba Inu cryptocurrency (CRYPTO: SHIB) absolutely skyrocketed today. At the time of this writing, it was up over 30%. Earlier today, this crypto saw gains of up to 70% over a 24-hour period as investors crammed into this token on a large volume.

This continued bullish price action follows a series of Elon Musk’s tweets. By sending his millions of followers photos of his dog, Musk (inadvertently?) Created a frenzy of activity among speculative dog-themed tokens.

Shiba Inu’s moves have overtaken the larger crypto market. However, other major cryptocurrencies are also trading higher on Thursday. Indeed, it seems that investors today are taking a risk-based approach to speculative assets. This follows reports that an agreement is being finalized to postpone discussion of the debt ceiling.

So what

This impressive buying activity has propelled Shiba Inu to the top 20 of the cryptocurrency rankings by market capitalization. Its market capitalization of over $ 10 billion has more than tripled in the last week alone. It’s impressive.

Like what has been described as a counterfeit meme token, playing on the success of previous investor favorite meme Dogecoin (CRYPTO: DOGE), Shiba Inu has gone under the radar quite recently. But this recent rally has propelled the token into the limelight for investors today.

Now what

Investors who are considering even speculative tokens certainly have a momentum on their side right now. Indeed, demand is exploding, as are the prices of some of the most speculative cryptos among small cap tokens.

Considering Shiba Inu’s rise to the top 20 in market capitalization rankings, investors will likely pay more attention to this. In the short term, that could mean more bullish sentiment and continued momentum. However, as we have seen with other tokens, such as Dogecoin, when the sale starts, it can accelerate quickly.

As a result, as with any speculative asset class, investors should remain cautious in sizing their positions appropriately and focusing on holding a diversified portfolio.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a premium Motley Fool consulting service. Were motley! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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