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Shiba Inu Bitcoin Correlation Drops to Lowest in Weeks, What Happened?

Sat, 09/16/2023 - 13:40
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Tomiwabold Olajide
Shiba Inu developments continue to shape progress
Shiba Inu Bitcoin Correlation Drops to Lowest in Weeks, What Happened?
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Shiba Inu-Bitcoin correlation in the last 30 days has fallen to a new low as Shiba Inu charts its course independent of the leading cryptocurrency's movements.

IntoTheBlock data indicates that the 30-day correlation between Shiba Inu and Bitcoin has fallen to 0.42. This is a significant decrease from the high of 0.96 seen at the week's start.

This supports the notion that SHIB is increasingly breaking off from Bitcoin's influence and establishing its trajectory.

Likewise, the 60-day correlation between Shiba Inu and Bitcoin was 0.5. This implies that parallel price movements are less likely. Shiba Inu is less likely to mimic Bitcoin price swings in this way.

Shiba Inu was demonstrating a higher 30-day correlation with Ethereum at 0.84, while that with rival Dogecoin stands at 0.56.

Shiba Inu developments continue to shape progress

The decreasing correlation is noteworthy, as Shiba Inu seems to be on the path of creating a trajectory for itself as developments in its ecosystem shape its progress.

Shiba Inu Developer Activity Boosts SHIB by 25% as Network Grows: On-chain Data

For instance, Shiba Inu was a top gainer in July, closing the month by over 12%. Kaiko noted that this price boost was spurred by a wave of developer activity on the network. That particular month saw the introduction of self-sovereign identity (SSI) as well as progress on Shibarium.

However, the tide changed as Shiba Inu erased the gains after Shibarium paused shortly after its Aug. 16 launch. Shiba Inu has yet to rebound from the August falls and is currently down by 7.13% in September.

At the time of writing, Shiba Inu was marginally up 0.68% in the last 24 hours to $0.0000074.

In the days ahead, an increasing correlation between Shiba Inu and Bitcoin may be an important indicator to determine whether Shiba Inu will replicate market swings or retain a distinct trajectory impacted by the developments in its ecosystem.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.