Bitcoin’s Impact on Shiba Inu (SHIB): Why It’s Down 15%

Bitcoin's Impact on Shiba Inu (SHIB): Why It's Down 15%

Shiba Inu (SHIB) has plummeted 14.98% in the past 24 hours. This sharp decline coincides with a broader market sell-off and significant liquidations across various cryptocurrencies.

Bitcoin’s Influence on the Market

The sustained selling pressure on Bitcoin has triggered this market slump. After massive selloffs, Bitcoin dropped by 5% on July 4. This decline has subsequently affected the prices of Shiba Inu and other altcoins.

Mt. Gox Trustee’s Test Transactions

Arkham Intelligence, a blockchain intelligence platform, reported that the Mt. Gox trustee recently initiated test transactions. These transactions are in preparation for the highly anticipated early July repayments to creditors. The upcoming distribution involves a significant amount of Bitcoin, specifically 47,228 BTC worth approximately $2.7 billion. This impending distribution has unsettled investors, leading to increased selling activity and a drop in Bitcoin’s price below $55,000.

Shiba Inu Holders Face Liquidations

SHIB’s price decline has resulted in substantial liquidations for long position investors. Experts had recommended SHIB as a good long-term investment. However, this downturn has shaken the confidence of some long-position holders. Many investors had placed buy orders, anticipating that certain price levels would hold as support. The breaching of these support levels, including $0.000015 and $0.000014, triggered automatic liquidations to minimize losses.

Significant Liquidations

SHIB Liquidations. Source| Coinglass

Coinglass, a crypto derivatives platform, reveals that SHIB liquidations surpassed $1.6 million this morning alone. Over 95% of these liquidations, approximately $1.54 million, stemmed from long positions. This represents the highest daily total for SHIB long liquidations in the past four months. While significant for SHIB, these liquidations are relatively modest compared to the broader market. Over the past 24 hours, SHIB liquidations totaled $2.31 million, representing just 0.3% of the total market liquidations valued at $679 million. Bitcoin holds the highest liquidation figure at $226.94 million, followed by Ethereum at $166.48 million.

Selling Pressure from Whales and Sharks

SHIB Shark and Whale Addresses. Source| Santiment

SHIB also faces selling pressure from whales and shark investors. Santiment, an on-chain data analytics platform, indicates a gradual decrease in holdings of wallets containing between 10 million and 1 billion SHIB since early June. Larger investors have been offloading their SHIB holdings, contributing to the downward price movement.

At press time, Shiba Inu (SHIB) trades at $0.00001311, down about 15% over the past 24 hours. While broader market sentiment appears bearish, this decline could present a significant buying opportunity for SHIB investors.

Read Also: Shiba Inu Whale Accumulates 583.7 Billion SHIB Amid Market Crash: Is a Rebound Near?

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Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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