Why Dogecoin, Shiba Inu Rival Floki Inu Is Falling

Floki Inu FLOKI/USD is trading lower by roughly 18.8% to $0.0001163 late Tuesday. Shares of several altcoins are trading lower amid Bitcoin pulling back following a new all-time high.

Cryptocurrency markets are highly sentiment-driven. If Bitcoin, as the leading cryptocurrency, experiences a pullback after reaching a new all-time high, it can lead to a general sense of caution or concern among investors, causing them to sell off other cryptocurrencies like Floki Inu as well.

Many traders in the cryptocurrency market also engage in speculative trading, meaning they buy and sell assets based on short-term price movements rather than long-term fundamentals. A pullback in Bitcoin’s price might trigger panic selling among these traders, leading to a cascading effect across the broader cryptocurrency market, including Floki Inu.

For the unitiated- Floki Inu is often referred to as a spinoff of Dogecoin DOGE/USD and Shiba Inu SHIB/USD. The altcoin is based off of an Elon Musk tweet in which he stated that his Shiba Inu would be named “Floki.”

See Also: How Much Tesla’s Bitcoin Is Worth: Will Elon Musk’s Company Sell Crypto As It Hits New All-Time Highs?

What’s Going On?

Tuesday saw Bitcoin mimic a rollercoaster, hitting a record high above $69,000 before sharply dropping by 10% around 3:00 p.m. ET, its largest daily decline since November 2022.

Various speculations, including a flash crash and profit-taking, circulated to explain the downturn, but no clear explanation emerged within the crypto community…Read More