Shiba Inu (SHIB) has struggled over the past year and a half, failing to gain momentum even when Bitcoin hit an all-time high in October 2025. After reaching $0.000032 in December 2024, the asset has been on a downward trajectory, leaving investors concerned. Three potential catalysts could turn Shiba Inu bullish. A general market rebound is the first, with Bitcoin potentially near the end of its correction phase as highlighted by financial institution VanEck. The second is the CLARITY Act, which aims to bring regulatory clarity to the crypto market. An interest rate cut by the Federal Reserve, the third event, could lead investors to take on more risk and boost SHIB.
Shiba Inu (SHIB) fans and investors are distraught given the asset’s lackluster performance over the last year and a half. SHIB climbed to the $0.000032 price level in December 2024, but has since been on a downward trajectory. SHIB even struggled to gain steam when Bitcoin (BTC) climbed to an all-time high in October 2025.
The first thing that needs to happen for Shiba Inu (SHIB) to rally is a general market rebound. The cryptocurrency market, in general, has struggled to push for a majority of this year. However, we may be nearing the market bottom. Bitcoin (BTC) is potentially at the end of its correction phase, as highlighted by financial institution VanEck.
The second event that could potentially turn Shiba Inu (SHIB) bullish is the CLARITY Act being passed into law. The legislation aims to bring more regulatory clarity and investor protection for the cryptocurrency market. Investors could feel safer to put their capital in the crypto market if the law is passed. The Senate vote was delayed, but we could see the legislation being passed after the break.
The third event that could help Shiba Inu (SHIB) gain momentum is an interest rate cut. Lower rates often lead to investors taking on more risks. Inflation in the US has dipped to 3.4% in July. The Federal Reserve could cut rates if inflation falls below its 2% target.
