What happened
The price of Shiba Inu (SHIB 3.37%) had fallen more than 15% over the last 24 hours as of 10:37 a.m. ET today, in line with moves seen in the broader cryptocurrency market.
So what
Cryptocurrencies got hammered over the weekend, with the price of Bitcoin (BTC 3.61%) at one point plunging to around $42,000 briefly before coming back up to around $48,000. Large moves in Bitcoin tend to trigger the rest of the market.
But the interesting thing is that Bitcoin and most other cryptocurrencies seem to be struggling from the same concerns as traditional equities, such as the omicron variant, higher inflation, rate hikes coming sooner, and continued struggles in the Chinese real estate market.
Image source: Getty Images.
"This crash in the market definitely shows us that bitcoin isn't fully decoupled from the global markets," Marcus Sotiriou, a trader at digital asset firm GlobalBlock, told CNN. "It hasn't gotten to that stage yet where it's big enough to hold its own."
Sotiriou also said it looks like institutional crypto traders are booking profits before the end of the year, with the uncertainty over market conditions in 2022.
Now what
The price of Shiba Inu clearly seems to be moving with broader crypto prices at the moment, but I've never believed this cryptocurrency, in particular, is anything more than essentially meme investing.
There are no solid fundamentals behind the token, although given its popularity I am sure it will stay relevant in the near term. Overall, I would stay away, as investments lacking the fundamentals can really drop hard when market conditions get tougher.
