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Shiba Inu currency soared 22% in a week, boosted by Trump's cryptocurrency, inflationary pressures

2026-08-23 00:14:38
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SHIB took advantage of Trump to gain 22% weekly, putting pressure on inflationary pressure.

According to CoinGecko data, ShibaInu (SHIB) rebounded to US$0.00000620 against the background of a broad recovery in the cryptocurrency market, with an increase of 21.7% in the past week and a monthly increase of more than 31%. Despite its large following, SHIB has struggled to maintain its upward momentum over the past 18 months, and recent gains may face volatility again.

Trump's announcement triggered a broad market rally

The surge in SHIB prices followed a White House cryptocurrency event hosted by President Trump, where leaders of major digital asset companies held high-level discussions. President Trump talked about the possibility of the U.S. buying large quantities of Bitcoin (BTC) and other cryptocurrencies, which has sparked bullish sentiment in the cryptocurrency space and driven rapid price increases for many tokens.

Strong investor sentiment led to a rapid recovery in Shiba Inu, pushing it to recent highs. However, market optimism largely depends on whether the United States truly engages in large-scale cryptocurrency purchases, as Trump discussed.

Despite the rebound, the entire cryptocurrency market remains highly volatile. Bitcoin showed signs of correction, and SHIB, commonly known as meme, has since fallen back to $0.00005576. If bitcoin prices continue to fall, other cryptocurrencies, including SHIB, are likely to be affected by the same downward pressure.

Volatility and Risk in the Current Environment

The widespread sell-off triggered a massive liquidation, with nearly $550 million of long positions on major exchanges being erased in less than 60 minutes earlier today. Observers point to macroeconomic uncertainty and sensitivity to headlines as ongoing risks to speculative digital assets such as SHIB.

Uncertainty surrounding Trump's announcement about a massive U.S. acquisition of cryptocurrencies has increased the unpredictability of the market. If the government chooses not to proceed with these large-scale purchases, analysts warn that SHIB and other digital tokens could face a significant correction in the short term. The sustainability of SHIB's latest recovery is likely to depend on the realization of these policy signals.

The impact of inflation and interest rates

Inflation dynamics also loom over the outlook of the cryptocurrency market. Although consumer price index (CPI) data slowed in July 2026, inflation is still above the Federal Reserve's 2% target. This persistent inflation still makes the possibility of raising interest rates.

According to CME FedWatch data, the probability that the Fed will maintain current interest rates at its upcoming meeting is 60.1%, but the possibility of a rate hike is still 39.9%. Historically, higher interest rates have made riskier assets less attractive to investors, and assets like Shiba Inu will face greater risk of capital outflows if austerity policies are implemented.

While traders are closely watching the technical prospects of SHIB, broader adoption trends are reshaping the way investors access hot assets. Wall Street is actively adopting Web3 infrastructure rather than relying solely on traditional brokers. Platforms such as 1stepSwap now allow investors to hold tokenized shares of top U.S. companies, gold and silver directly in their crypto wallets. By providing real-world asset (RWA) tokenization and instant price discovery, these solutions effectively eliminate financial intermediaries.

Shiba Inu's price movements remain closely linked to macroeconomic trends and the evolving investor infrastructure. Although the recent rally marks a significant recovery, signs of continued volatility suggest that those seeking to trade SHIBs should remain cautious in the current environment.

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