The prices of both Shiba Inu and Dogecoin fell double-digits on Friday after Bitcoin dropped below $67,000. This decline has seen both meme coins lose their gains for the last few days, triggering losses for investors and traders alike. But what was the cause of the crash?
Dogecoin, Shiba Inu Follow Bitcoin
The price eras experienced by Dogecoin and Shiba Inu on Friday have less to do with a particular development for the assets themselves and more to do with Bitcoin. Bitcoin, which had seen a massive rally from $15,000 to $73,000, experienced a correction and dipped as low as $65,700 on Friday.
Given that Bitcoin is the market leader and the price action of altcoins often mirrors it, leading to a similar price crash among coins such as Shiba Inu and dogecoin. While Bitcoin fell around 9%, the impact of the crash was much more pronounced on the altcoins.
Dogecoin, for one, saw a 14% crash, with its price dropping from $0.18 to as low as $0.16. In a similar fashion, the Shiba Inu price fell a bit further than Dogecoin with an almost 15% decrease in price to bring its blow $0.0000129.
Despite this crash, Dogecoin was able to retain its position as the 9th-largest cryptocurrency by market cap. However, Shiba Inu has been kicked out of the top 10 cryptocurrencies by market cap after its decline sent its market cap to $17 billion, putting it behind Avalanche (AVAX) with a market cap of $19.3 billion.
Bitcoin Crash Triggers $812 Million In Liquidations
The price crash has washed out a significant amount of long positions in the last 24 hours as liquidations cross $800 million. As expected, Bitcoin liquidations have accounted for a large amount of these positions, but altcoin positions have not been left out.
According to data from Coinglass, Bitcoin liquidations reached $279 million, while Ethereum liquidations were $137 million, with Solana accounting for $41.59 million. Then, moving on to Dogecoin and Shiba Inu, both of these meme coins saw almost $30 million in liquidations among them.
In total, over 248,000 traders were liquidated, with the largest single liquidation event happening on the BTC-USDT-SWAP pair on the OKX exchange. The vast majority of the liquidations are understandably longs which account for 82.43% of the total liquidations.
At the time of writing, the Dogecoin price is sitting at $0.1605 with a 7-day decline of 4.12%, and the Shiba Inu price is sitting at $0.00002892 with a 7-day decline of 15.39%, according to data from CoinMarketCap.
SHIB price recovers after dip | Source: SHIBUSDT on Tradingview.com
Featured image from CoinDCX, chart from Tradingview.com
