The cryptocurrency market experienced a significant surge on Thursday, building on momentum following the Federal Reserve’s recent interest rate cut—the first in over four years.
Shiba Inu Leads The Crypto Rally
The dog-themed cryptocurrency, Shiba Inu (SHIB), led the market rally, spiking over 20% in just 24 hours. This increase took SHIB to its highest levels since mid-June, expanding its year-to-date gains to 85%. This impressive rise allowed Shiba Inu to outperform larger cryptocurrencies like Bitcoin and Dogecoin in terms of returns.
However, the situation was different a year ago. During the cryptocurrency bear market, Shiba Inu saw a steep decline, losing 90% of its value from its all-time high.
SHIB’s Performance Over The Past Year
Exactly one year ago, Shiba Inu was priced at $0.000007256. If you had invested $1,000 in SHIB at that time, you would have received 137,816,979 SHIB tokens. As of today, those tokens would be worth $2,621.27, marking a 162% increase in value over the past year.
How Bitcoin And Dogecoin Compare
In comparison, Bitcoin and Dogecoin have also performed well over the last year, but their returns fall short of Shiba Inu’s gains. A $1,000 investment in Bitcoin one year ago would now be worth $2,480, reflecting a 148% increase. Similarly, $1,000 invested in Dogecoin would now be valued at $2,033, representing a 103% increase.
The Market Reaction To The Federal Reserve’s Rate Cut
The recent rally in cryptocurrencies was largely driven by the Federal Reserve’s announcement of a 0.5% rate cut last week. Since then, the total cryptocurrency market capitalization has grown from $2.21 trillion to $2.3 trillion.
Bitcoin, in particular, saw strong growth, climbing to $65,000 for the first time since August 1. Additionally, spot exchange-traded funds (ETFs) tied to Bitcoin recorded five consecutive days of net inflows following the Fed’s decision.
Analysts’ Predictions
Investment management firm Bernstein noted that rate cuts could revive cryptocurrency credit markets and provide a boost to sectors such as decentralized finance (DeFi). Analysts believe that these developments could potentially support further growth in the crypto space in the coming months.
As the market evolves, investors continue to monitor how interest rate policies and broader economic factors will impact cryptocurrency returns.
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