Popular blockchain tracking platform Shibburn has revealed that just recently, the burn rate of the second-biggest meme cryptocurrency, SHIB, has faced a drastic fall as it collapsed by almost 100%.

Still, there is some good news about it that partly reimburses for this negative and unexpected pivot.

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SHIB burn rate down on all fronts – minus 95%

According to the above-mentioned on-chain data source, over the past week, the Shiba Inu community has failed to hold the SHIB burn rate in the green zone. During the past seven days, this metric has collapsed by 94.05%. However, even with this fall, millions of meme coins were still transferred out of the circulating supply – 9,434,807 SHIB.

As for the daily burn rate, things stand worse here, since with a similar decline (minus 95.46%), the community has burned only as little as 169,895 SHIB.

SHIB rebounds 3.25%

Over the past 24 hours, the popular meme cryptocurrency has managed to rebound, reclaiming 3.25% after a 12.38% price crash that took place between Sunday and Monday.

Printing multiple consecutive red candles on an hourly chart, Shiba Inu mirrored the price curve of the flagship cryptocurrency, Bitcoin, on that day. Still, today’s price rise was followed by a small decline as SHIB went down by 1.18%. At the time of this writing, it is changing hands at $0.00001210 per coin.

BitMEX co-founder Arthur Hayes thinks downside continuation is possible for Bitcoin (BTC) even after witnessing a 24% correction from its all-time high.

In a new post on the social media platform X, the crypto veteran outlines a series of events that he thinks would pressure the Federal Reserve to pivot and end its restrictive monetary policies.

Hayes sees Bitcoin capitulating alongside the US stock market but says that those events will not be enough to trigger a Fed intervention. According to the Maelstrom CIO, the collapse of traditional financial (TradFi) firms in the US would force the Fed to end quantitative tightening (QT) – a move that would drive other major central banks to follow suit.

“BTC likely bottoms around $70,000. A 36% correction from the $110,000 all-time high is very normal for a bull market.

Then we need stonks, SPX (S&P 500) and NDX (Nasdaq Index) to enter free fall. Then we need TradFi muppet to go under.

THEN we get the Fed, PBOC (People’s Bank of China), ECB (European Central Bank) and BOJ (Bank of Japan) all easing to make their country great again.

THEN you load up the truck.

Traders will try to buy the dip, if you are more risk averse wait for the central banks to ease then deploy more capital. You might not catch the bottom but you also won’t have to mentally suffer through a long period of sideways and potentially unrealized losses.”

According to Hayes, Bitcoin will likely witness wild price swings once it gets close to his downside price target due to the massive number of outstanding derivative contracts, or open interest (OI), at the low $70,000 price area.

“There are a lot of options OI struck at $70,000-$75,000, if we get into that range it will be violent.”

At time of writing, Bitcoin is trading for $82,780, up nearly 5% in the past day.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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