Why Shiba Inu And Dogecoin Dumping Hard Today?

Shiba Inu and Dogecoin Spiraling Down Due to Bitcoin Price Crash

Shiba Inu and Dogecoin have witnessed significant market declines following the recent Bitcoin price crash. Both meme coins have lost over 7% of their value, leaving investors speculating about the reasons behind the downturn.

Bitcoin's Influence

The downward trend in Dogecoin and Shiba Inu prices mirrors Bitcoin's recent sell-offs. Bitcoin's price plummeted to $57,000 due to sell-offs by the US and German governments.

On-chain data platform Arkham Intelligence reported transactions from BTC wallets linked to both governments. The German government sent $29.95 million worth of BTC to the Bitstamp crypto exchange, indicating a potential sell-off.

Another transaction involving 249.43 BTC was associated with the US government. However, it was not sent to a centralized exchange like Bitstamp but rather to an unknown wallet. This could indicate an over-the-counter (OTC) transaction, which avoids exchange fees.

Bears in Control

Despite their resilience during the market crash, Dogecoin and Shiba Inu have succumbed to bearish pressure. Dogecoin has dropped 7% to $0.11, while Shiba Inu has shed 8% to $0.0000153, marking a decline of over 50% from its early 2024 peak.

Market Outlook

The future trajectory of Dogecoin and Shiba Inu prices hinges heavily on Bitcoin's price recovery. As Bitcoin leads the market direction, a reversal in its downtrend is expected to positively impact these meme coins.