Shiba Inu Price Dips 19% as Donald Trump Swings Investor Focus towards BTC, ETH

Shiba Inu Price Analysis

Shiba Inu price tumbled toward $0.000016 on July 26, 2024, amid a dearth in institutional interests, here’s what SHIB traders can expect as the month draws to a close.

Shiba Inu Dips 19% as Ethereum ETF Hype Cools

Between July 5 and July 18, the global crypto market was agog, as dovish NFP and CPI data revived investor interest in the sector. Like the rest of the market, Shiba Inu, raced into a blistering 58.17% rally during those eventful 14-days.

However, things have taken negative turn for SHIB since July 19, amid fresh developments surrounding US political landscape as well as the Ethereum ETF launch.

First, on July 21, Joe Biden dropped out of 2024 Presidential Election race, which swung the campaigns pendulum in favour of Donald Trump. With Trump perceived to be a Bitcoin friendly candidate, this development has pulled investor attention toward BTC.

More so, Ethereum ETFs launched on July 23, sparking a wave of institutional demand for ETH. Within the first two days of trading, Ethereum ETFs recorded nearly $2 billion in trading volumes.

These two critical events appear to have skewed investor’s focus disproportionately towards the BTC and ETH markets over the past week.

Consequently, other crypto sectors, including meme-coins like Shiba Inu (SHIB) have evidently struggled for traction.

SHIB price rallied 58.17% between July 5 and July 18. But as investors switched focus to BTC and ETH in the aftermath of Joe Biden bowing out, and Ethereum ETFs launch SHIB price has entered a steep downtrend.

The chart above shows that SHIB is now trading at $0.0000017 at the time of writing on July 26, reflecting a 19% decline from the monthly time frame peak of $0.000020 recorded July 18.

Meanwhile, BTC and ETH have recorded 7% gains within the 24-hour timeframe. This raises concerns that major investors’ switching focus to Bitcoin and Ethereum could be hurting the demand within other crypto sectors.

SHIB Whale Transactions Down 90% this Week

Another factor affirming concerns that large investors have switched focus disproportionately towards BTC and ETH is the downtrend, whales trading activity on the Shiba Inu network.

The IntoTheBlock chart below tracks the number of the number of large transactions that exceed $100,000 in nominal value.

Looking at the chart above, we see that Shiba Inu traders carried out only 55 large transactions on July 25 and failed to record up-to 100 whale transactions on any trading day this week.

Notably, the 55 SHIB large transactions recorded on July 25 reflects, a whopping 90% decline from last week’s peak of 1,060 whale transactions recorded on July 18 when prices rallied 57% toward $0.000020.

This trend illustrates that whale investors have cut down their trading activity in the SHIB markets significantly since BTC and ETH took center stage.

And with Donald Trump scheduled to speak at the Bitcoin Conference in Nashville this weekend, that gap could widen, likely pulling Shiba Inu price further downward.

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