BTC's Momentum Fades, Triggering Market Downturn and Dampening the Enthusiasm

The year kicked off with a strong start as Bitcoin (BTC) surged to a new high in January, fueling market optimism.

Shiba Inu (SHIB) has begun the year in the red as macroeconomic conditions continue to worsen, causing major setbacks for the meme coin.

Shiba Inu Price Today: 0.00000134

Shiba Inu is now trading at $0.00000134. It has dropped by 6.1% over the last day, 7.9% over the last week, 13.9% over the last two weeks, and 28.7% over the last month. Since March 2024, it has fallen by a whopping 65.8%.

The latest blow to the crypto market came in the form of a renewed trade war. The U.S. slapped tariffs on the European Union (EU), which in turn vowed retaliation. Later, the U.S. extended tariffs to Canada and Mexico.

The market reacted immediately, with investors pulling back and risk appetite decreasing. This resulted in massive fund outflows from crypto assets like SHIB.

Meme coins are typically known for their high volatility, leading to steeper gains and losses. In this cycle, Shiba Inu is no exception.

The U.S. Federal Reserve has remained non-committal on cutting interest rates despite the rising macroeconomic stress. Although inflation has decreased, it still remains a concern, and the labor market is showing signs of strain. This has kept investors in a cautious mood.

As for SHIB, the impact is clear. The asset has lost over 65% of its value since March 2024, and analysts are divided on what will happen next.

Can Shiba Inu reach $0.00007380?

Crypto analyst TheHunters_Company is bullish on SHIB in the long term. According to his Fibonacci projections, SHIB could rise to $0.00007380.

If this prediction proves correct, it could lead to an astronomical 531% rally from the current price.

However, not all predictions are optimistic. CoinCodex has a much darker forecast, anticipating that Shiba Inu will lose another zero in the coming weeks.

Their projection for June 8, 2025 is $0.000009971, which represents a further 15% drop from today’s price.

The crypto market is at a crossroads. If macroeconomic conditions improve, we could see a return of risk appetite, which might give SHIB a second wind.

However, if trade tensions escalate further, it could push the market into a deeper downturn. A prolonged economic downturn would spell more pain for Shiba Inu and other high-risk assets.

The coming months will be critical for the meme coin to recover.