does shiba inu follow bitcoin

Shiba Inu exhibits a strong positive price correlation with Bitcoin (0.89 over the past year), suggesting a parallel trajectory and potential mimicking of BTC's market behavior.

Oct 16, 2024 at 06:06 am

Shiba Inu and Bitcoin: A Correlation Study

Shiba Inu (SHIB) and Bitcoin (BTC) are two of the most popular cryptocurrencies in the market today. Shiba Inu, in particular, has seen a meteoric rise in popularity over the past year, leading many to wonder if it is following a similar trajectory to Bitcoin.

In this article, we will examine the relationship between Shiba Inu and Bitcoin to determine whether or not there is any evidence to support the claim that SHIB is following BTC.

1. Price Correlation

One of the first things to consider when comparing two cryptocurrencies is their price correlation. This metric measures the extent to which the prices of two assets move in the same direction. A positive correlation means that the prices of the two assets tend to move in the same direction, while a negative correlation means that the prices of the two assets tend to move in opposite directions.

According to data from CoinMarketCap, the correlation between Shiba Inu and Bitcoin over the past year has been 0.89. This indicates a strong positive correlation, meaning that the prices of the two assets have tended to move in the same direction.

2. Market Capitalization

Another important factor to consider is the market capitalization of two cryptocurrencies. This metric measures the total value of all outstanding coins of a particular cryptocurrency. A higher market capitalization indicates that a cryptocurrency is more widely held and has a larger market presence.

As of September 2022, the market capitalization of Shiba Inu is approximately $12.5 billion, while the market capitalization of Bitcoin is approximately $380 billion. This indicates that Bitcoin is a much more widely held and established cryptocurrency than Shiba Inu.

3. Trading Volume

The trading volume of a cryptocurrency is another important metric to consider when comparing two cryptocurrencies. This metric measures the amount of a cryptocurrency that is being traded on a daily basis. A high trading volume indicates that a cryptocurrency is actively traded and has a large pool of liquidity.

According to data from CoinMarketCap, the average daily trading volume of Shiba Inu over the past year has been approximately $500 million, while the average daily trading volume of Bitcoin over the past year has been approximately $20 billion. This indicates that Bitcoin has a much higher trading volume than Shiba Inu, which is not surprising given its larger market capitalization.

4. Social Media Sentiment

Finally, it is also worth considering the social media sentiment surrounding two cryptocurrencies. This metric can provide insights into the level of interest and excitement surrounding a particular cryptocurrency.

According to data from LunarCrush, the social media sentiment surrounding Shiba Inu has been positive over the past year, with a score of 65 out of 100. The social media sentiment surrounding Bitcoin has also been positive, with a score of 70 out of 100. This indicates that both Shiba Inu and Bitcoin have a strong following on social media and are generating a lot of interest and excitement.

Conclusion

Based on the data presented in this article, there is some evidence to support the claim that Shiba Inu is following a similar trajectory to Bitcoin. The two cryptocurrencies have a strong positive price correlation, and they have both seen significant gains over the past year. Additionally, both Shiba Inu and Bitcoin have a strong social media presence and are generating a lot of interest and excitement.