When The Shiba Inu Game Is Up, Other Assets Could Face 'Risk-Off' Sentiment: Report

When The Shiba Inu Game Is Up, Other Assets Could Face 'Risk-Off' Sentiment: Report

Shiba Inu SHIB/USD could face a price reversion worthy of its parabolic rise, according to Bloomberg’s senior commodity strategist Mike McGlone.

What Happened: In the November edition of Bloomberg’s Crypto Outlook report, McGlone described Shiba Inu as a “unique blend of exploitation, good marketing, ESG, supply vs. demand economics and gambling on unprecedented 24/7 global scale.”

The meme-based cryptocurrency is up by an astounding 86 million percent since November 2020 when it traded at just $0.000000000056, but is down 43% since hitting an all-time high of $0.00008616 in October.

“The fact that the meme coin has reached our radar places Shiba Inu at similar risk as Dogecoin DOGE/USD in May, just before its collapse,” stated the Bloomberg strategist.

McGlone was referring to Dogecoin’s massive surge earlier this year when it reached a high of $0.7376 following the hype around a potential endorsement from Tesla Inc TSLA CEO Elon Musk during his appearance on "Saturday Night Live."

After the crash of May 19, which saw Bitcoin BTC/USD and other major cryptocurrencies lose more than 30% of their value, Dogecoin fell to a price of $0.28. Since then, the coin has consolidated around this level even as Bitcoin, Ethereum ETH/USD and many other altcoins recovered to pre-crash levels and went on to set new highs.

According to Bloomberg, Shiba Inu’s current valuation could depict risks to the broader crypto market.

“When the Shiba Inu game is up, the problem we see is that many assets could be prone to risk-off sentiment,” stated McGlone in the report.

SHIB Price Action: SHIB was trading at $0.00004883, down 2.69% in the last 24 hours, as of Wednesday at publication.

Photo by Ferhat Deniz Fors on Unsplash

Posted In: altcoinsBloombergElon MuskmemecoinMike McGloneCryptocurrencyNewsMarketsMedia