The decline in Shiba Inu today can be attributed to several factors, primarily the sustained selling pressure affecting Bitcoin, which has led to widespread liquidations totaling over $2 million, marking a four-month high.
Recently, the cryptocurrency market has entered another phase of declines, resulting in significant price drops that triggered extensive long liquidations across various assets. Shiba Inu has been particularly hard hit, plummeting by more than 21% this month alone and experiencing a staggering 46% decline since June 1.
Shiba Inu Monthly Performance
This downturn positions Shiba Inu as one of the hardest-hit cryptocurrencies in the current market collapse, exacerbated by its high volatility. Currently trading at $0.00001359, SHIB has breached several crucial support levels, including those at $0.000015 and $0.000014, registering a morning drop of 7.11%.
Long traders in Shiba Inu have borne the brunt of these losses, with many relying on these support levels for defense. According to derivatives data from Coinglass, SHIB liquidations this morning alone have totaled $1.616 million.
Shiba Inu Liquidations | Coinglass
Of note, $1.54 million of these liquidations—over 95%—stem from long positions. This marks the highest long liquidation figure for SHIB in four months, surpassing levels not seen since March 19 when such liquidations surpassed $2.77 million. Market tracker Crypto Crunch highlighted a significant liquidation event that contributed notably to this figure, where a market whale saw their $980.7K long position wiped out early today as SHIB dropped to lows around $0.000014.
Despite these substantial figures, Shiba Inu’s liquidations pale in comparison to broader market trends. Over the past 24 hours, SHIB has witnessed $2.31 million in liquidations, which represents only 0.3% of the total market liquidations amounting to $679 million. Bitcoin (BTC) holds the largest share of these liquidations at $226.94 million, followed by Ethereum (ETH) at $166.48 million, where the largest single liquidation involved a trader losing $18.48 million on Binance.
Crypto Market Liquidations | Coinglass
The market’s turbulence can largely be traced back to selling pressures around Bitcoin, the dominant cryptocurrency. Reports from The Crypto Basic recently highlighted significant whale exchange deposits and sell-offs contributing to this pressure, coinciding with a 5% daily decline in BTC’s value. Notably, the Mt. Gox trustee’s movement of 47,228 BTC worth $2.7 billion to a new wallet today has sparked widespread panic, compounding the selling pressure.
Bitcoin’s drop below $55,000 has directly impacted Shiba Inu, triggering its own downward spiral. In addition to the BTC contagion, SHIB is also grappling with significant sell-offs from large holders. Data from Santiment indicates that wallets holding between 10 million to 1 billion SHIB have steadily reduced their balances since the beginning of June.
SHIB Shark and Whale Addresses | Santiment
Disclaimer: This article serves as informational content and should not be construed as financial advice. The opinions expressed herein are those of the author and do not necessarily reflect the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, as The Crypto Basic is not liable for any financial losses incurred.