SHIBA Inu has rocketed 50 percent in just a day as dog-themed tokens were the top gainers today.
The surge comes amid a broad recovery in crypto with Bitcoin’s value going up to $44,000 and Ether’s $3,000, according to CoinMarketCap.
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SHIB tokens surged to $0.0000342 from the $0.000022 on Sunday while Dogecoin jumped to $0.1661 from $0.145.
The move caused nearly $10 million in losses to liquidations for traders of SHIB-tracked futures products, according to Coin Desk.
After becoming one of the dominant meme currencies of 2021, Shiba Inu’s value had been on a downward trend for the most part since late October.
On October 28, Shiba hit an all-time high of $0.00008845.
Some of this can be attributed to countries threatening or enacting a ban on cryptocurrencies in general.
Moreover, another reason is inflation. In efforts to combat it, the Federal Reserve is now planning on hiking interest rates in March.
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Meanwhile, Shiba’s price collapse wasn’t stopped by its listing on crypto exchange CoinDCX in November.
Up until then, Shiba was only available on the platform in trade-only mode on CoinDCX Pro.
Last year Shiba Inu became the first cryptocurrency firm in India to reach a valuation of over $1billion, earning it coveted unicorn status.
And now traders are wondering whether its price will reach $0.10 this year.
Marie Tatibouet, chief marketing officer of crypto exchange Gate.io, told The Sun that it’s tough to predict what the “community” will do next but sees the Shiba rally cooling off soon.
Meanwhile, experts claim Bitcoin will reach a peak of about $93,717 in 2022.
However, the experts added that the cryptocurrency value will drop to $76,360 by the end of the year.
The years’ end prediction is roughly 60% higher than the price of Bitcoin at the beginning of 2022.
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The risks of buying with cryptocurrencies
Investing and making a purchase in cryptocurrencies such as Bitcoin is risky .
Their value is highly volatile and City watchdog the Financial Conduct Authority has warned investors should be prepared to lose all their money.
Investing in cryptocurrencies is not a guaranteed way to make money.
You should also think carefully about making purchases with a cryptocurrency.
For example, Bitcoin has had wild price fluctuations in recent months and the price can change on an almost hourly basis.
The price of a Bitcoin was at $40,258 on January 9, according to Coindesk, but fell to $34,214 just three days later.
That’s a 15% drop.
These price swings are risky for a business as you could sell an item for a Bitcoin at one price and the value may drop soon after, leaving you with less money from a sale.
Similarly, the price of Bitcoin has soared by more than 21% since the start of this week so it can be hard for a shopper to get an accurate idea of the price of an item if its value changes on a daily basis.
