Memecoin Price Wars: As Elon Musk Signals Dogecoin Support, Shiba Inu Coin Has Suddenly Crashed 50%—Here’s Why

Shiba inu, the challenger to dogecoin’s meme-based crypto crown, has stormed into the crypto top ten in recent weeks.

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Branded as the “dogecoin killer,” shiba inu has rocketed on unfounded expectations trading app Robinhood and the crypto exchange Kraken could be about to list the memecoin.

This week, a shiba inu whale moved almost $3 billion worth shiba tokens from its original wallet, sparking fears some large holders could be about to cash out.

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“It looks like there were four transactions out of that account yesterday, each sending $695 million of shib to a different account—so a total of $2.78 billion,” Tom Robinson, co-founder of blockchain forensics company Elliptic, told Bloomberg. “Whoever it is purchased the shib on Uniswap about a year ago, for not very much.”

If large cryptocurrency holders—be it bitcoin, shiba inu or dogecoin—begin moving coins, traders can be spooked into thinking the market could be about to be flooded, potentially driving down the price. Last month, researchers warned “the bitcoin ecosystem is still dominated by large and concentrated players,” making the cryptocurrency “susceptible to systemic risk.”

The shiba inu coin price, still up 500% on this time last month, has lost 50% of its value over the last week. Shiba inu has soared amid wild speculation Robinhood could be about to add the cryptocurrency to its platform—something that would open up the market to millions of additional traders. Robinhood chief executive Vladimir Tenev poured cold water on these expectations, however, citing regulatory scrutiny.

Meanwhile, crypto exchange Kraken tweeted that if it gets “2,000 likes [on a tweet] we will list shib tomorrow.” The post attracted over 80,000 “likes” but Kraken followed it up by saying: “There’s more work for us to do as we move through our listing review process.”

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MORE FROM FORBESThe Surprise Reason Why Tesla And SpaceX Billionaire Elon Musk Supports Dogecoin Over Shiba Inu, Bitcoin And Ethereum

As shib inu has struggled to hold onto its massive gains, dogecoin, itself breaking into the crypto top ten earlier this year in a similar price pump, has continued to receive support from Tesla TSLA billionaire and crypto influencer Elon Musk.

“Hype^Hype,” Musk replied to dogecoin co-founder Billy Markus via Twitter, who had suggested “get-rich-quick people” would bail when “a new hype appears.”

“Hype doesn’t last, and it attracts get-rich-quick people who will bail once they get theirs and/or when a new hype appears,” Markus tweeted. “If you want something to actually be worth more than what it is currently worth, add lasting value to it. Hype adds nothing.”

Musk has adopted dogecoin as his pet project this year, calling on developers to submit upgrade proposals and for miners to update their software to the latest version. Musk has said dogecoin could “beat bitcoin hands down” if it lowers fees and speeds up transaction times.


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JPMorgan Doubles Down On Its Massive Bitcoin Price Prediction—But Adds A Serious Warning

Bitcoin and cryptocurrencies have swept through Wall Street this year, with many of the biggest banks beginning to roll out crypto services.

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The bitcoin price has soared from around $15,000 per bitcoin this time last year to over $60,000 today—causing “supple shocks” that analysts think have grown stronger over the last month.

Now, banking giant JPMorgan JPM has renewed its prediction that bitcoin could more than double to around $146,000 in the long term but has warned bitcoin’s extreme volatility could send its price sharply lower, giving bitcoin a fair value of just $35,000.

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MORE FROM FORBESCrypto Price Prediction: Bitcoin Could Hit $100,000 Before The End Of 2021-But Lacks Ethereum ‘Intensity’


“This challenges the idea that a price target of $100,000 or above, which appears to be the current consensus for 2022, is a sustainable bitcoin target in the absence of a significant decline in bitcoin volatility,” JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note to clients seen by Business Insider. “Digital assets are on a multiyear structural ascent, but the current entry point looks unattractive.”

Many bitcoin and crypto market watchers have predicted the bitcoin price will hit $100,000 before the end of 2021, in part due to inflation fears pushing investors into so-called safe haven assets.

Concerns that inflation—now at a 13-year high in the U.S.—could be more persistent than transitory has this week led to the Federal Reserve to begin scaling back its huge pandemic-induced quantitative easing program.

“Digital assets have emerged as a clear winner post the pandemic, with retail investors joining institutional investors such as family offices, hedge funds and real money asset managers including insurance companies in propagating the asset class,” JPMorgan analysts wrote.

The bitcoin price has added more than 300% over the last 12 months, helping the combined cryptocurrency market add around $2 trillion to its total value.

“The re-emergence of inflation concerns among investors during September/October 2021 appears to have renewed interest in the usage of bitcoin as an inflation hedge,” JPMorgan strategists wrote. “Bitcoin’s allure as an inflation hedge has perhaps been strengthened by the failure of gold to respond in recent weeks to heightened concerns over inflation.”

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MORE FROM FORBESThe Next Shiba Inu? Facebook Meta Sends The Price Of This Minor Bitcoin Rival Soaring 300% To $6 Billion

The bank’s researchers think that if bitcoin’s volatility continues to fall, a price of $73,000 in 2022 is plausible, but its wild swings mean an increase of more than double its current $61,000 or even a drop to under $30,000 is also a possibility.

However, interest in bitcoin as an inflation hedge replacement for gold, even to a small degree, could mean result in a “big upside for bitcoin.”

“Considering how big the financial investment into gold is, any such crowding out of gold as an ‘alternative’ currency implies big upside for bitcoin over the long term,” Panigirtzoglou wrote, reiterating his earlier long-term bitcoin price prediction of $146,000 per bitcoin.


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Square Saw $1.8 Billion in Bitcoin Revenue in Q3

Key Takeaways

  • Square has published its quarterly earnings report, which includes details on its Bitcoin revenue and profits.
  • The company saw $1.8 billion in Bitcoin revenue and $42 million in Bitcoin profits this quarter.
  • Those numbers represent a decline in quarterly revenue, but an increase year over year revenue.

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Square has released its quarterly earnings report, which includes profits and revenue from Bitcoin transactions and sales.

Square’s Quarterly Bitcoin Revenue Is Down

Square says that it saw $1.8 billion in Bitcoin revenue during Q3 2021, an increase of 11% year over year. That translated into $42 million in gross profits, an increase of 29% year over year.

Though those numbers represent an annual increase, they also represent a quarterly decline. Square saw $2.7 billion in Bitcoin revenue in Q2 and $3.5 billion in Bitcoin revenue in Q1 of this year.

In fact, Square’s Bitcoin revenue this quarter was closest to Q4 2020, when the company brought in $1.76 billion in revenue.

Square says that this decline has been due to market conditions, “driven primarily by relative stability in the price of bitcoin which affected, trading activity compared to prior quarters.” Investors are mainly interested in buying Bitcoin low, a strategy that is more difficult in a stable market.

Bitcoin Made Up Half of Total Revenue

It appears that Bitcoin still makes up a significant part of Square’s revenue. Combining Bitcoin and other transactions, the company saw $3.84 billion in revenue this quarter, meaning that Bitcoin was responsible for roughly half (46%) of Square’s total revenue.

Bitcoin was not so significant in terms of profits though. The company saw a total of $1.13 billion in gross profits, with its $42 million of Bitcoin profits making up less than 4% of that number.

Square is one of the largest payment processors in the world, handling both Bitcoin and regular currency. It is also notable for being led by Twitter CEO Jack Dorsey, who has become a vocal proponent of Bitcoin.

Disclaimer: At the time of writing this author held less than $100 of Bitcoin, Ethereum, and altcoins.

This news was brought to you by Phemex, our preferred Derivatives Partner.


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Mythical Games announces $150M raise as the company expands into NFTs

Mythical Games announced the conclusion of a $150 million fundraising round. The company conducted the raise at a $1.25 billion valuation on Thursday, which was led by global venture capital firm Andreessen Horowitz.

Mythical said it plans to use this new infusion of capital to help integrate NFTs into games. Andreessen General Partner Arianna Simpson said in a statement:

“Co-Founders John, Jamie, and Rudy have a wealth of experience in the gaming world, and have built a world-class team to support their vision. We’re thrilled to partner with them to bring NFT gaming to an even larger stage.” 

Other investors in this round included venture capital firms D1 Capital, 32 Equity (the investment arm of the National Football League), RedBird Capital, Com2Us, and The Raine Group in addition to cryptocurrency exchanges FTX and Binance Labs. Several professional sports franchise owners also participated including Jonathan Kraft of the New England Patriots and Michael Gordon of the Boston Red Sox. Ryan Tedder of OneRepublic said:

“As an early believer and investor in blockchain technology and NFTs, and as a much earlier believer in video games, I am happy to help back a company that understands not only where the world is at with gaming and tech, but where it’s headed.”

Mythical previously announced a $75 million round in June, the same month Andreessen Horowitz launched the largest crypto venture fund ever. That fund led a quarter billion dollar Series C for blockchain platform Alchemy in October.