Bitcoin’s dominance in the cryptocurrency market is undeniable, controlling a large portion of the market’s movements and affecting the prices of many altcoins. One such altcoin that has shown a strong correlation with Bitcoin is Shiba Inu (SHIB). As Bitcoin continues to surge or face corrections, Shiba Inu’s price often follows a similar trend. With Bitcoin’s potential future price targets of $500,000 and even $13 million, it’s worth considering how such milestones might influence Shiba Inu’s market value.
Bitcoin currently dominates over 60% of the cryptocurrency market, setting the pace for many altcoins, including Shiba Inu. Bitcoin’s price fluctuations often have a ripple effect, influencing altcoins in similar patterns. Recently, Bitcoin’s price experienced a substantial drawdown, dipping over 10% weekly, which caused a significant downturn across the crypto market. Despite these declines, Shiba Inu has continued to show resilience, holding a strong correlation with Bitcoin’s price action.
Bitcoin’s Influence on Shiba Inu
Shiba Inu has demonstrated a considerable correlation with Bitcoin, and this trend is expected to continue as the larger cryptocurrency market develops. Historically, when Bitcoin experiences significant price moves, Shiba Inu tends to follow, albeit with some variation. The bigger question lies in how Shiba Inu will respond to Bitcoin’s future price predictions. Let’s examine what might happen to Shiba Inu if Bitcoin hits $500,000 or an even higher target of $13 million.
Bitcoin Reaching $500,000
Some analysts, such as those from Bloomberg, have set a bold price target for Bitcoin at $500,000 in the long term. This prediction is based on several factors, including Bitcoin’s growing status as a store of value, similar to digital gold, and its ability to capture more of the precious metals market. Additionally, growing institutional interest and the limited supply of Bitcoin, capped at 21 million coins, may drive demand and push the price upward.
At a price of $500,000, Bitcoin’s market cap would increase significantly, approaching $9.91 trillion, assuming its circulating supply of about 19.82 million BTC. Shiba Inu, with its current market cap of around $8.63 billion, accounts for approximately 0.506% of Bitcoin’s market cap. Based on this correlation, if Bitcoin hits $500,000, Shiba Inu’s market cap would rise to approximately $50.14 billion, pushing the price of SHIB to about $0.0000851.
This price would be below Shiba Inu’s all-time high but would still represent a notable increase from its current price level.
Bitcoin Reaching $13 Million
The more aggressive prediction comes from Michael Saylor, the chairman of Strategy (formerly MicroStrategy), who forecasts that Bitcoin could potentially reach $13 million per coin. This projection hinges on Bitcoin’s ability to outperform traditional fiat currencies amid global inflation and economic uncertainty. Saylor believes that Bitcoin’s attributes, such as its finite supply and increasing institutional adoption, will propel it to capture a significant portion of the global financial market.
If Bitcoin reaches $13 million, its market cap would surge to an extraordinary $257 trillion, or $273 trillion at full dilution. With the 0.506% market cap correlation between Shiba Inu and Bitcoin, this would elevate Shiba Inu’s market cap to a staggering $1.3 trillion. At this level, and considering Shiba Inu’s circulating supply of approximately 589.25 trillion coins, SHIB’s price would surge to around $0.002206, more than 150 times its current value.
Conclusion
The potential for Shiba Inu to follow Bitcoin’s price movements presents an exciting opportunity for investors. If Bitcoin reaches the predicted price levels of $500,000 or $13 million, Shiba Inu could see a significant surge, with its price potentially reaching new all-time highs. However, it’s important to note that these calculations are based on theoretical correlations and don’t guarantee that Shiba Inu will mirror Bitcoin’s price action. While the correlation between Bitcoin and Shiba Inu has been strong, there is no certainty that this trend will continue in the same manner as Bitcoin approaches these higher price targets. Nonetheless, these predictions offer a glimpse of what could happen if Bitcoin achieves these ambitious milestones in the future.
Financial Market Newsflash
No financial news published today. Check back later.
