What happened?
The Shiba Inu (SHIB) price experienced a significant increase on Thursday, following broader market trends, as news of a new USA/UK trade deal created optimism that the ongoing trade wars might be coming to an end. This surge pushed SHIB’s value up by 12% in a day, placing it nearly 40% above its lows from earlier in April. The strong determination of SHIB holders has also contributed to the positive outlook, suggesting that the market may have reached its bottom.
Who does this affect?
This development primarily affects cryptocurrency investors and traders who hold positions in Shiba Inu (SHIB), especially those who have demonstrated strong resolve by holding the coin for more than a year despite significant volatility. Additionally, it impacts the wider crypto market, including other meme coins and Bitcoin, which saw a rise above $100,000 for the first time in months. The renewed optimism may also benefit other stakeholders in the trade deal, such as businesses impacted by US/UK trade relations.
Why does this matter?
The recent rally in SHIB and other cryptocurrencies signifies a shift in investor sentiment towards risk assets, influenced by potential improvements in global trade conditions due to the US-UK trade agreement. A reduction in trade uncertainty could lead to increased market stability, motivating further investments in volatile assets like meme coins. If these conditions persist, they could trigger a broader recovery in the crypto market, potentially leading to substantial gains for investors of Shiba Inu and similar assets.