Despite today’s big gains, the cryptocurrency is still down roughly 27% year to date.
What happened
Shiba Inu ( SHIB -5.30% ) is soaring today. The cryptocurrency’s price was up roughly 9.3% over the previous 24-hour period as of 3:30 p.m. ET Saturday.
There doesn’t appear to be any coin-specific news driving Shiba Inu’s price higher today, but investors have generally been easing back into risky and otherwise speculative investments over the last week. The broader cryptocurrency market is enjoying bullish momentum, and the popular meme token is benefiting.
So what
Following some intense bearish pressures earlier in March, investors poured back into cryptocurrencies stocks over the last week of trading. Recent comments from Russian and Ukrainian policy officials suggest that the two sides are making progress on negotiations that could bring an end to the invasion of Ukraine. The quarter-point interest rate hike announced by the Federal Reserve at its meeting on Wednesday was also below the potential half-point increase that had been prompting market anxiety. The combination of these developments appears to have prompted an uptick in bullish sentiment that’s helping to lift Shiba Inu’s token price.
Now what
Shiba Inu now has a market capitalization of roughly $13.3 billion and ranks as the 15th-largest cryptocurrency by valuation. The meme token’s token price is down roughly 72% from the lifetime high that it hit last October, but it’s still up more than 36,300% over the last year of trading.
In the event that negotiations bring an end to Russia’s invasion of Ukraine in the near future, that could make investors less risk-averse and create positive momentum for SHIB and other cryptocurrencies. Still, the outlook on that front remains uncertain. Shiba Inu could also get a boost from increased adoption, the addition of the token to new trading exchanges, or applications built around the token, but there’s not much visibility on these fronts either. Investors should move forward with the understanding that this cryptocurrency remains highly speculative.
