The cryptocurrency market experienced a significant surge on Thursday, continuing the momentum sparked by the Federal Reserve’s decision to cut interest rates for the first time in over four years. This latest rally was spearheaded by Shiba Inu, the beloved dog-themed memecoin, which saw an impressive increase of over 20% in the past 24 hours, reaching levels last seen in mid-June.
This recent uptick has propelled Shiba Inu’s year-to-date gains to a remarkable 85%, outperforming even established cryptocurrencies like Bitcoin and Dogecoin. However, a year ago, the situation was quite different. The canine coin struggled during the cryptocurrency bear market, losing a substantial 90% of its value from its all-time highs.
Exactly a year ago, SHIB was trading at $0.000007256. If you had invested $1,000 in the memecoin at that time, you would have acquired 137,816,979 SHIBs. Today, the value of that same investment has risen to $2,621.27, representing a significant 162% increase.
In comparison, a $1,000 investment in Bitcoin and Dogecoin a year ago would have yielded $2,480 and $2,033, respectively, indicating a 148% and 103% increase.
Cryptocurrency Performance on September 27, 2023
| Cryptocurrency | Price | Current Value of $1000 Investment | Gains +/- |
|—|—|—|—|
| Shiba Inu (SHIB/USD) | $0.000007256 | $2,621.27 | +162% |
| Bitcoin (BTC/USD) | $26,352.72 | $2,480 | +148% |
| Dogecoin (DOGE/USD) | $0.0605 | $2,033 | +103% |
The total cryptocurrency market cap has risen from $2.21 trillion to $2.3 trillion since the announcement of the 0.5% rate cut last week. Bitcoin has climbed to $65,000 for the first time since August 1st, with spot exchange-traded funds (ETFs) tied to the cryptocurrency experiencing five consecutive days of net inflows since the Fed’s decision.
Analysts at investment management firm Bernstein have indicated that rate cuts could potentially reignite cryptocurrency credit markets and provide a boost to sectors like decentralized finance (DeFi). This surge in activity suggests that the cryptocurrency market is reacting positively to the Fed’s recent actions, creating a renewed sense of optimism for investors.
