Shiba Inu and Dogecoin have suffered market crashes today after the Bitcoin price crash. Both of these meme coins have seen their prices fall more than 7% already, leaving investors bewildered as to what is causing the crash. All roads actually lead to Bitcoin and the massive sell-offs that have dominated the leading cryptocurrency.
Bitcoin Price sends Shiba Inu And Dogecoin Spiraling
While the Dogecoin and Shiba Inu price have been dropping, they are actually following the lead of Bitcoin, which has seen a lot of sell-offs recently. Bitcoin’s price drop to $57,000 was triggered by sell-offs from both the US and German government, causing the price to continue to drop.
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On-chain data tracking and aggregation platform Arkham Intelligence, reported transactions from BTC wallets linked to both the German and US governments. According to the platform, the German government sent $29.95 million (500 BTC) to the Bitstamp crypto exchange. Given that coins are usually sent to exchanges in order to sell them, the market reacted negatively, with the BTC price dropping as a result.
Another transaction that caught investors’ attention is one associated with the US government. In the early hours of Thursday, Arkham also reported a transaction involving 249.43 BTC, worth $14.38 million at the time of the transaction.
Unlike the German government’s transaction, the US government’s transaction was not sent to a centralized exchange like Bitstamp, rather it was sent to an unknown wallet. However, this does not suggest that the US government is not selling, as the transaction could be an over-the-counter (OTC) transaction that eliminates the fees of exchanges.
Succumbing To Bearish Pressure
While the Dogecoin and Shiba Inu prices have been holding quite well through the market crash, they have still seen significant declines. On its part, the Dogecoin price has fallen 7% to reach $0.11 after a good start to the year 2024.
Following the same trend, the Shiba Inu price has already dropped 8% in the last 24 hours as well. This decline has pushed Shiba Inu’s price to $0.0000153, representing an over 50% drop from its early 2024 price highs. On the weekly chart, both meme coins have also suffered, with Dogecoin and Shiba Inu dropping 9.3% and 10.6%, respectively.
Touching on whether the prices of these meme coins will continue to struggle, it all circles back to the Bitcoin price. This is because the pioneer cryptocurrency, which often leads the market direction, has seen the majority of the sell-offs. So if the Bitcoin price does start to recover, then Dogecoin and Shiba Inu are expected to follow.
Featured image created with Dall.E, chart from Tradingview.com
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