Shiba Inu SHIB/USD is trading lower by some 1.6% to $0.00000741 going into the close of U.S. trading Wednesday, according to data from Benzinga Pro. Several altcoins are lower as stocks across sectors rise following a lighter-than-expected June inflation report.
Cryptocurrencies like Shiba Inu are considered high-risk investments due to their inherent volatility and lack of regulatory oversight. When inflation is lower than anticipated, investors may perceive reduced risks and allocate their funds towards less volatile assets. This shift in risk perception can lead to reduced demand for Shiba Inu, affecting its price negatively.
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Additionally, a lower inflationary environment may also create doubts about the long-term stability and adoption of cryptocurrencies, further eroding investor confidence and impacting the price of Shiba Inu.
What Happened?
U.S. CPI inflation in June decelerated more than anticipated, reinforcing investor expectations of a single rate hike by the Federal Reserve followed by a halt to its tightening cycle. The Bureau of Labor Statistics' data reveals a drop in the annual inflation rate from 4% in May to 3% in June, slightly below the average economist forecast of 3.1%.
This marks the twelfth consecutive month of declining inflation and the lowest reading since March 2021...Read More
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