Cryptocurrencies, including Shiba Inu (SHIB), are experiencing a second day of upward momentum following a mixed inflation report and a Senate Banking Committee hearing on the future of crypto regulation. As of February 15, Shiba Inu's price has risen by over 9% over the last 48 hours.
Why’s This Happening?
The Consumer Price Index (CPI) report, released by the Bureau of Labor Statistics, tracks the prices of consumer goods and services and is a key indicator of inflation. The report revealed that the CPI had increased by 0.5% from December and had risen by 6.4% year over year, higher than economists' expectations. The report showed mixed results, with signs of inflation easing but uncertainty surrounding the process.
The inflation outlook is crucial for crypto investors. If the Federal Reserve can decrease inflation, it will not need to increase interest rates, which have made riskier assets such as cryptocurrencies less attractive to investors. This has contributed to the collapse of crypto prices in the past.
Partisan Gridlock on Regulation Is Good for Crypto
On Monday, the Senate Banking Committee held a hearing on crypto regulation, with mixed views from its members. Senate Democrats expressed concerns about cryptocurrencies as an asset class and proposed stricter regulations, while Senate Republicans want less regulation to avoid discouraging crypto firms from basing themselves in the US.
Partisan gridlock in Congress on this issue is good news for investors, as it reduces the likelihood of any comprehensive overhaul of crypto regulation in the near future. This comes as the Securities and Exchange Commission (SEC) has started cracking down on crypto firms, spooking investors.
Shibarium Is Ready
In other news, Shiba Inu developers have announced the release of the confirmed logo for the upcoming layer 2 networks. The lead developer of Shiba Inu, Shytoshi Kusama, stated on the project’s Telegram channel that "Shibarium is ready" and will soon release media to introduce the SHIB Army to the layer-2 blockchain. The release date for the public beta of the L2 network is expected to be announced soon.
The L2 network will bring exciting changes to the Shiba Inu ecosystem, making transactions faster, cheaper, and more secure. It will also enable the development of decentralized applications on the network, further expanding the potential use cases of the Shiba Inu coin.
In conclusion, the recent mixed inflation report and Senate hearing on crypto regulation have contributed to the rise in cryptocurrency prices, particularly Shiba Inu. The crypto market is keeping a close eye on the inflation outlook and regulatory developments. Meanwhile, the upcoming launch of Shibarium's L2 network is expected to bring exciting changes to the Shiba Inu ecosystem.
Shiba Inu Price Action
After suffering a correction to the $0.0000120 support base, Shiba Inu has recorded a sharp turnaround, breaching the accumulation zone (highlighted in purple) and reclaiming the $0.0000130 area. As mentioned earlier, this comes amid reactions to the US CPI data and political gridlock in the US Senate on the way forward on crypto regulation.
The renewed bullish momentum could push the cryptocurrency back to the $0.0000150 top, where a recovery from the crypto winter could ensue. However, despite the positive news surrounding Shiba Inu, trading volume remains relatively flat, indicating that many investors are still not impressed or convinced. Will investor sentiment improve anytime soon?
SHIB Statistics Data
SHIB Current Price: $0.0000132
SHIB Market Cap: $7.2B
SHIB Circulating Supply: 549T
SHIB Total Supply: 589T
SHIB Market Ranking: #13
This article should not be taken as financial advice. It is essential to conduct research before making any investment decisions.