Shiba Inu (SHIB) briefly reclaimed the $0.000006 price level this week, ending a period of lackluster performance, but has since dipped back to $0.000005. According to DefiLlama data, Shiba Inu’s Shibarium network has seen its Total Value Locked (TVL) plunge 74%, falling from over $120,000 to approximately $31,000. The broader cryptocurrency market is also slowing, with Bitcoin (BTC) dipping to $79,000. The recent market rally was fueled by increased liquidity from the US Treasury’s bond buyback decision, but analysts anticipate that this liquidity may eventually drain. Additionally, persistent U.S. inflation could lead the Federal Reserve to raise interest rates, potentially causing a steep correction for SHIB.
Shiba Inu (SHIB) is already showing signs of weakness after failing to hold the $0.000006 price level. Data shows Shibarium’s TVL has plunged 74% in a few days.
The larger cryptocurrency market is also slowing down, with Bitcoin (BTC) dipping to $79,000. The market rally was fueled by increased liquidity due to the US Treasury’s decision to increase bond buy backs.
The move led to more liquidity for the crypto market, with high-risk assets such as Shiba Inu (SHIB) as beneficiaries. However, the US Treasury will have to eventually refill its coffers.
This could result in a liquidity drain from the cryptocurrency market in due time. Shiba Inu (SHIB) and the larger crypto market could face steep price correction under such circumstances.
Additionally, inflation in the US is still higher than the Federal Reserve’s 2% target. There is a chance that the Federal Reserve will raise interest rates later this year to combat high prices, which could substantially hurt SHIB’s price.
Things could improve for Shiba Inu (SHIB) in late 2026 or early 2027. Wall Street analysts from Bernstein and Standard Chartered anticipate Bitcoin reclaiming $100,000 by the end of this year, which could potentially push SHIB back above the $0.00001 mark.
