When Bitcoin breached $42,000 last December, Bloomberg trumpeted the milestone as the start of a new “supercycle” that could propel the crypto king to $500,000.
However, how would such an epic 10x rally for BTC ricochet through the broader crypto markets? We asked the AI system Google Bard to analyze the potential effect on the meme coin Shiba Inu.
While admitting predicting any crypto’s future value is hugely complex and uncertain, Bard highlighted four key factors driving Shiba Inu’s price action as context for its analysis.
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What factors can influence SHIB’s price?
First, Shiba Inu has historically followed Bitcoin’s trajectory fairly closely, rallying and retreating in proportion to BTC’s waves. A Bitcoin surge to $500,000 could reasonably result in a similarly dramatic uptick for SHIB.
Second, developments powering adoption within Shiba Inu’s ecosystem, like its Shibaswap decentralized exchange and scaling solution, Shibarium, may enable more independent price appreciation.
Third, overall market sentiment tends to sway altcoins like SHIB. Bitcoin-fueled euphoria could lift all boats, while a souring landscape would hamper gains.
Finally, SHIB’s gigantic circulating supply impacts its price elasticity. Buying pressure behind a BTC spike may temporarily balloon SHIB’s price before gravity rebalances sentiment.
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How high can Shiba Inu go if BTC hits $500,000?
Accounting for these nuances, Bard ballparked a Bitcoin rocket ride to $500,000, which could potentially catalyze a 500% to 1,000% pump for SHIB. That would place Shiba Inu between $0.0000495 and $0.0000990 based on its current ~$0.0000097 price point.
However, Bard cautioned that the degree of correlation between the two assets may fluctuate significantly in such elevated pricing territories. Also, fundamental developments around the Shiba Inu ecosystem could enable big moves irrespective of Bitcoin’s fluctuations.
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It further noted that unforeseen events like regulatory shifts or security incidents could dramatically impact price trajectories, making forecasts speculative at best.
In conclusion, while a hypothetical Bitcoin surge to $500,000 may lift all boats enough to 5–10x SHIB’s value, myriad factors could alter the outcome in unexpected ways. Ultimately, predicting crypto prices with any precision is vastly complex and unreliable.