Why Dogecoin, Shiba Inu Rival Floki Inu Is Volatile

Floki Inu FLOKI/USD is trading lower by roughly 4.2% to $0.0002669 late Friday. Shares of several altcoins are trading lower amid Bitcoin pulling back following a new all-time high of $73,000.

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: Why Vanguard Rejects Bitcoin ETFs: Is It Too Volatile For Your Retirement?

What's Going On?

Bitcoin experienced a decline below $67,000 in the Asia trading session following its failure to breach the $71,500-$72,000 range. According to cryptocurrency analyst Pierre, this decline led to three potential short-term price outcomes.

The first scenario suggests a trend break on a four-hour chart, leading to a gap fill at the 100-day moving average before stabilizing…Read More