Bloomberg’s November Crypto Outlook report has been released. In Bloomberg, shiba inuof (SHIB) evaluated his madness. The report chose the world’s second largest cryptocurrency Ethereum (ETH) as the facilitator of the joke coin.
Written by Mike McGlone, senior commodities strategist at Bloomberg Intelligence, the post argues that SHIB has risen alongside ETH because its low price has “fascinated bettors” who are willing to risk small sums on the meme coin.
As an example of this sentiment among investors, the report noted that a $100 investment in SHIB at market price as of October 29 would give the investor 1.4 million SHIB tokens, compared to 0.0016 Bitcoin.
This argument is backed up by a chart with the same title – Ethereum is the Shiba Inu Facilitator – showing that SHIB is following Ethereum’s move very closely.
Another reason cited is that since SHIB is an ERC-20 token, it is a “use case and demand factor for the Ethereum platform”. This was also included in the report as an example, as the report stated from the very beginning that the fate of the meme coin was somehow tied to Ethereum.
The anonymous creator sent half of the total SHIB token supply (around 410 trillion SHIB) to Ethereum founder Vitalik Buterin in May. Buterin burned 90 percent (worth about $6 billion at the time) and gave the rest to charity, saying he didn’t want to “become that kind of powerhouse.”
Based on this, the report described SHIB as “a unique blend of 24/7 global exploitation, good marketing, ESG (environmental, social and governance practices that can have significant impacts on an investment’s performance), supply-demand economics and gambling.” and warned that this is likely to be reversed. It could be similar to Dogecoin’s rapid rise as it did in May.
Similar to what McGlone said a while ago, the report states that at the end of the day, the market will return to risk aversion, dispel the speculative frenzy, and “consolidate” Bitcoin’s position as the leading store of value. Therefore, the analysis expects Bitcoin, Ethereum and stablecoins to ultimately be the long-term winners in the cryptocurrency market and industry.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.