Shiba Inu has made impressive gains in less than a year, but may struggle strongly in the coming months. The SHIB token could plummet much lower from its current level
You may not realize it, but the stock exchanges, including Wall Street, have provided historically impressive returns over the past 20 months. After losing a third of its value in about a month during the coronavirus crash in March 2020, the US stock market index S&P 500 earned over 100%. A staggering rise but nothing to do with that of some cryptocurrencies that could record 100% gains even in a single week.
In the same period in which theS&P 500 index recorded its highest performance, the total value of cryptocurrencies has grown more than 20 times to exceed $ 3 trillion.
With the two largest cryptocurrencies, Bitcoin (BTC) ed Ethereum (ETH), which account for 62% of this market value, it’s no surprise that they got a large chunk of finished money in the cryptocurrency market.
2021 was a Shiba Inu millionaire year
However, the meme mint Shiba Inu (SHIB) left these ‘blue-chip’ cryptocurrencies, and frankly every other digital currency, in the rearview mirror in 2021 when we compare performance.
In early 2021, a single SHIB token it could be purchased for at $ 0.000000000073. Comparatively, on October 27, those same SHIB coins hit their all-time high of $ 0.00008841, going from 10 zeroes to fours, Shiba Inu generated a peak earnings of over 121,000,000% in less than 10 months! (not a typo). In other words, if you had been lucky enough to buy at midnight on January 1st and sell at peak on October 27th, you might have transform 10 euros into more than 12 million euros.
To go back to the previous example, Shiba Inu has voiced the S&P 500 over 4,000 times in just a few months.
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Making sense of Shiba Inu’s bullish move
If you are wondering how such incredible gains are possible, the answer lies in a long list of factors.
Perhaps the most important role in Shiba Inu’s immense earnings is the inherent purchase bias found in most cryptocurrencies. While the short selling of digital currencies selected is possible with some cryptocurrency exchanges, cryptocurrencies not named Bitcoin generally do not have monitoring funds or easily accessible options / derivatives. The point is this: It’s really easy to bet against the most visible cryptocurrencies, but it’s hard to short almost everything else, including Shiba Inu.
The psychological fear of missing the opportunity also seems to play a role. It is no secret that Bitcoin returned a rise of up to 8,000,000,000% between its debut in July 2010 and the recent all-time high at the beginning of November. With the knowledge that historical gains are possible with cryptocurrencies, investors are more than willing to chase even higher big gains even on meme coins or now the new ones. cryptocurrencies of the metaverse.
The launch of the decentralized exchange ShibaSwap is also helping. ShibaSwap is improving liquidity for what has, at times, been a thinly traded cryptocurrency and allows hodlers to stake their own coins for earn passive income. Staking should help extend the holding period of SHIB tokens.
The Shiba Inu community is also enjoying its first major commercial victory. Recently, cinema chain AMC Entertainment announced that it would be integrating SHIB into its crypto payment platform, with the feature running by Q1 2022. This move came after AMC CEO Adam Aron published a survey on Twitter to ask if the movie chain should accept the Shiba Inu coin. More than 87% of the 153,100 respondents were in favor of the move.
And yes, too Elon Musk influenced Shiba Inu. The richest person in the world adopted a Shiba Inu dog this year and is known for tweeting Shiba Inu-themed memes. Although a number of the coins are inspired by the Japanese Shiba Inu dog breed, SHIB hodlers took a cue to buy from Musk’s tweets (although it has nothing to do with the development of the Shiba Inu).
Shiba Inu has already lost 60%: How much more can it go down?
But as much as Shiba Inu has grown in 2021, the hottest cryptocurrency in the world appears to have lost its luster. Between an October 27 high of $ 0.00008841, the price of the SHIP token dropped to $ 0.00003614, with a percentage drop of up to 60% of its value in four weeks. Despite providing historical results, the question must be asked: How long can the Shiba Inu phase of weakness last? How much more can it go down?
One of the biggest obstacles to this popular digital currency is that it lacks anything that looks like a competitive advantage. While Shiba Inu is buzzing on social media boards, there is nothing unique that makes this cryptocurrency a long-term winner. Since it is an ERC-20 token built on the Ethereum blockchain, it is bound to them high transaction fees and processing delays that occasionally accompany the Ethereum network.
To build on this point, real-world usage for Shiba Inu is particularly low. Recent updates from the Cryptwerk online business directory, as of November 25, show that only 365 merchants worldwide accept SHIB for payment. That’s nothing when you consider that there are over 500 million entrepreneurs around the world. The data is clear enough that companies do not wish to accept SHIB as payment.
History has shown that life-altering gains in the cryptocurrency space eventually meet with huge pullbacks. It is not uncommon for digital currencies to lose 93% to 99% of their value after five-digit percentage gains in a short amount of time. If this turns out to be the case, SHIB could roll back between $ 0.0000006189 and $ 0.0000008841.
It is not possible to predict what the future Shiba Inu price movements, could make another impressive bullish move such as continuing to plummet, but surely if the downward momentum continues, there is a good chance it could sink this ship as quickly as it went up.
Shiba Inu Real Time Chart (SHIB)
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How to invest in cryptocurrency CFDs
For investing in cryptocurrencies (Bitcoin, Ethereum, Cardano, Solana, Dogecoin, Litecoin, etc …) there are more possibilities, but certainly the simplest one is through the cryptocurrency CFD trading.
Among the advantages of trading cryptocurrencies through CFDs is being able to trade 24 hours a day, even on weekends. Also with CFDs it is possible to ‘bet’ both upside and downside, thus having the possibility of gaining (or losing) both during the bullish and bearish phases.
Furthermore, CFDs on cryptocurrencies can count on leverage of 1: 2 for retail investors. This means that by investing € 1,000, the position on the market will be double, € 2,000. Leverage has the advantage of doubling your profits but exposes you to greater risk if prices go in the opposite direction to that chosen.
Where to invest in cryptocurrencies with CFDs
Investing in cryptocurrencies is one of the favorite activities of many people who wish to ride the enthusiastic rally of digital currencies. Thanks to CFDs, anyone can easily access the financial markets and buy cryptocurrencies (or other types of assets such as stocks, currencies, commodities, etc …), even with a small starting capital.
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