Why Shiba Inu Crypto is Climbing Today

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What happened

The cryptocurrency market sees recent losses extend into another trading day, but Shiba Inu (CRYPTO:SHIB) is gaining ground. The price of the popular meme token is up around 1% from the previous 24-hour period as of 6 p.m. ET on Thursday.

Investors have generally abandoned high-risk, speculative investments amid growing valuation concerns and macro risks, but there has been some return to certain cryptocurrencies recently. Despite recent confirmation that the Federal Reserve is looking to significantly raise interest rates this year, the Shiba Inu token is rising after recent setbacks.

Image source: Getty Images.

So what

After heavy selling, the Shiba Inu digital coin is now down around 75.5% from its late October high, and bullish investors are cautiously snacking on the token after a recent drop in valuation. On the other hand, the token is still up over 15,370,000% in the last year of trading, even after the big pullbacks.

Now what

Shiba Inu currently has a market capitalization of around $11.7 billion and ranks 14th among cryptocurrencies in terms of valuation. In addition to the trading momentum of memes and the potential for a bullish surge in the broader crypto market, there are also upcoming metaverse projects built around the Shiba Inu token that could help drive demand and growth. adoption of cryptocurrency and help increase its valuation. But investors should keep in mind that SHIB has already posted unprecedented gains over the past year of trading, and there is a high risk that the token will continue to decline.

Cryptocurrencies and stocks are generally facing downside pressure after Federal Reserve Chairman Jerome Powell confirmed on Wednesday that the US central bank will soon raise interest rates and still sees room for increases significant all the way. Speculative investments tend to thrive in environments with low interest rates and bond yields because investment capital is easier to secure and returns from low-risk income generators are minimal. But it seems that the macroeconomic context is changing.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.

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