The correlation Shiba Inu shares with Bitcoin indicates that SHIB could surge by 87,652% if BTC hits VanEck’s $52.3 million target.
The broader crypto market has failed to break above the roadblock encountered recently. Bitcoin (BTC) led a recovery push last week but faced intense resistance above the $62,000 mark. In response, the rest of the market witnessed a halt in their rallies, with Shiba Inu also suffering the impact.
SHIB and BTC Price Correlation
Shiba Inu recorded an impressive 11% daily gain on Aug. 8 amid the market recovery campaign. However, it has since corrected some of the gains picked up due to the Bitcoin correction. This turn of events confirms the massive correlation Shiba Inu shares with Bitcoin.
Data from market tracker CoinMarketCap shows that Shiba Inu has continued to trail Bitcoin’s price movements over the past week. Notably, SHIB has dropped whenever Bitcoin collapsed and recovered on the back of a rebound from the premier asset.
Such a close correlation can either be bullish or detrimental to Shiba Inu’s price action. In the event of a massive spike in Bitcoin’s price, SHIB could ride on such an increase to register a similar upsurge. Interestingly, there have been multiple projections of such rallies for Bitcoin.
One of these projections came from leading asset manager VanEck. Notably, VanEck predicted last month that Bitcoin could hit one of three prices by 2050. For the bear case, they expect a $130K value. However, the base and bull cases respectively project targets of $2.9 million and $52.3 million.
Shiba Inu Price if Bitcoin Hits $52.3M
For context, Bitcoin currently changes hands at $59,661. To rally to the $52.3 million bull price target set by VanEck, the cryptocurrency would need to skyrocket by as much as 87,706% from its current position. Bitcoin’s all-time growth rate of 95,365,408%, as assessed by CMC, is much greater than the projected 87,706% rise.
Meanwhile, should Bitcoin engineer the 87,706% spike to $52.3 million, the uptrend could trigger similar rallies from altcoins like Shiba Inu. SHIB currently changes hands at $0.00001388, looking to recover and solidify its position above $0.000014. An 87,706% spike from this current level would take Shiba Inu to a new all-time high of $0.012187.
At such a price, SHIB will have erased three leading zeros, adding to its previous meteoric surge in 2020/2021. However, it remains uncertain if such a rally could materialize. Notably, there is no guarantee that Bitcoin could record the 87,706% spike or that SHIB would closely trail its movements should it occur.
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