The prices of Shiba Inu (SHIB) and Dogecoin (DOGE) have taken a hit due to the ongoing Bitcoin price crash and capital rotation towards newer tokens. Both meme coins, once top performers, are facing a rough patch. Dogecoin’s price dropped by 5.45%, while Shiba Inu saw a 3.3% decrease.
3 Reasons Behind Shiba Inu and Dogecoin’s Price Decline
The market downturn for these popular meme coins has left many puzzled. Despite Dogecoin’s roadmap update and a significant SHIB burn, their prices continue to slide. Here are the three primary factors causing this dip.
1. Profit-Taking & Capital Rotation
Both DOGE and SHIB have been dominant players in the meme-coin space for a while. However, with the introduction of new tokens, many investors are reallocating their capital to emerging cryptocurrencies for potentially higher returns. Recently, TRON-based tokens gained popularity, with one trader making $7 million from a modest investment. This shift has weakened the performance of DOGE and SHIB, exacerbated by a lack of strong bullish momentum.
2. The September Slump
Historically, September has been a challenging month for cryptocurrencies, and this year is no different. Traders have been hesitant to place new trades as market sentiment has shifted toward fear. A report by Rekt Capital shows that Bitcoin has already seen a 6.19% decline in just seven days this month. This historical trend, seen consistently for the past nine years, is now impacting both Bitcoin and altcoins like Dogecoin and Shiba Inu.
3. Bitcoin’s Price Crash
Bitcoin’s performance heavily influences the entire crypto market. The flagship cryptocurrency has been struggling, dropping to as low as $53,000 before slightly recovering to $54,252.53. This ripple effect has pulled down other coins, including DOGE, which now sits at $0.0937, and SHIB, which is at $0.00001297. Whenever Bitcoin struggles, the rest of the market follows suit.
Final Thoughts
The current price drops of Shiba Inu and Dogecoin are part of a broader market crash, driven by weak Bitcoin performance and unfavorable US nonfarm payroll data. The slump has also been fueled by the September decline, a recurring pattern in crypto history. Traders remain cautious as the market navigates through this challenging period.
