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Shiba Inu: ‘Dogecoin Killer’ Slayed after Tesla Bitcoin Ban

Shiba Inu: ‘Dogecoin Killer’ Slayed after Tesla Bitcoin Ban

Tammy Da Costa, Analyst

Bitcoin, Shiba Inu, Dogecoin Talking Points:

  • Elon Musk remains a key catalyst of crypto volatility, illustrated again over the past week
  • Shiba Inu, the ‘Dogecoin killer’ slayed in Bitcoin blood bath
  • Dogecoin falters but bounces back above $0.40
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The past 24 hours have been brutal for the cryptocurrency realm after Tesla CEO Elon Musk announced the decision to suspend Bitcoin (BTC/USD) as an alternative payment method due to environmental concerns. As markets tumbled, Dogecoin and it’s mascot-turned-rival, Shiba Inu, plummeted, wiping out 226% of its recent fame that was gained over the weekend.

Shiba Inu (SHIBUSDT) Hourly Chart

Shiba Inu: ‘Dogecoin Killer’ Slayed after Tesla Bitcoin Ban

Shiba Inu price chart created using TradingView

Over recent weeks, the crypto craze has seen a rapid surge in the demand for meme-based alt-coins after (self-proclaimed ‘Dogefather’) Tesla CEO Elon Musk expressed his optimism for Dogecoin. The move was further exacerbated by Musk’s Saturday Night Live (SNL) debut last weekend.

Learn more about major financial bubbles, crises and flash crashes

However, within the first half of the show, Dogecoin’s price had plummeted a massive 39%, leaving DOGE enthusiasts devasted. Meanwhile, Shiba Inu (Dogecoin’s clone) took full advantage of this opportunity, which saw the so called ‘Dogecoin Killer’ surge a massive 2792% over a three day period.

Shiba Inu (SHIBUSDT) 15 Minute Chart

Shiba Inu: ‘Dogecoin Killer’ Slayed after Tesla Bitcoin Ban

Shiba Inu price chart created using TradingView

Although alt coins have recovered slightly, speculation and crowd psychology remain the primary catalysts of price action and are known to produce more volatility for cryptocurrencies, especially as Elon Musk continues to play a critical proponent of the move.

--- Written by Tammy Da Costa, Market Writer for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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