Shiba Inu Cryptocurrency Shows Negative Correlation with Bitcoin, Maintains Positive Relationship with Ethereum and Dogecoin
Shiba Inu, the dog-themed cryptocurrency, is currently experiencing a negative correlation with Bitcoin, the largest cryptocurrency by market capitalization. According to data from on-chain analytics firm, the 30-day correlation coefficient between Shiba Inu and Bitcoin has reached new lows of -0.24. However, Shiba Inu continues to maintain a positive correlation with other crypto assets like Ethereum and Dogecoin, with the exception of Chainlink.
Correlation coefficients range on a scale from -1 to +1, indicating the strength and direction of the relationship between assets. When the correlation is negative, it suggests that the two assets move in opposite directions. In this case, Shiba Inu and Bitcoin appear to be heading in opposite directions.
Interestingly, Shiba Inu is now focusing on utility as its fundamental value, aiming to shed its status as a meme coin. As a result, it has charted a new course for itself.
Looking at the price movement, both Bitcoin and Shiba Inu have remained relatively stable over the past 24 hours. In September, Bitcoin has seen a 4.12% increase, whereas Shiba Inu has experienced an 8.14% decrease.
Despite lackluster performance in recent months, historical precedents suggest that October holds promise for Shiba Inu. On average, SHIB has recorded a 420% gain during this month. In fact, in October 2021, Shiba Inu reached an all-time high of $0.000088.
Of course, it’s important to remember that the crypto market is highly volatile, and past performance is not necessarily indicative of future results. This leaves the direction of Shiba Inu’s price in October as an open question.
As the cryptocurrency landscape continues to evolve, it’s interesting to observe the shifting correlations between different assets. While Shiba Inu’s negative correlation with Bitcoin shows a divergence in their price movements, its positive relationship with Ethereum and Dogecoin suggests a shared trajectory.
Overall, crypto enthusiasts are closely watching these correlations and the potential impact they may have on the future of Shiba Inu and other cryptocurrencies.
