Shiba Inu Crashes 95%: Can Crypto Market Conditions Help It Recover?

Shiba Inu (SHIB) has been struggling to recover from its all-time high price, having fallen by over 95%. The meme currency, which was once among the top performers of the 2021 bull run, has been trading against a backdrop of strong selling pressure due to changed market conditions.

Although SHIB showed some positive momentum in 2024, it failed to sustain its gains amid increased economic uncertainties. The overall crypto market was also affected as the situation with monetary policy worldwide became unclear.

The Federal Reserve's tight monetary policy stance and high interest rates have made it challenging for cryptocurrencies like SHIB to recover. Additionally, the huge supply of tokens in circulation, around 589 trillion, makes any significant price appreciation difficult compared to other assets with low token supply.