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Bitcoin and other cryptocurrencies plunged sharply last week.
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This decline was driven by mounting fear across financial markets.
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Sales of the Shiba Memu token accelerated as the developers raised more than $2.1 million.
Cryptocurrency prices posted their worst performance of the year, with Bitcoin falling from $29,000 to below $26,000. Most coins and tokens were deeply in the red as demand waned and fear spread across markets. Despite the broader retreat, sales of the Shiba Memu token continued, with developers reportedly raising over $2.18 million.
Why did cryptocurrencies slide?
Several factors contributed to last week’s widespread crypto decline. First, some of the moves resembled a “shakeout.” A shakeout describes a situation where an asset suffers a sharp drop that later gives way to a bullish recovery.
Previous shakeouts occurred when Bitcoin fell from $25,000 to $19,000 before recovering to an annual high near $32,000. It remains unclear whether the recent drop was merely another shakeout or the start of a new bear run.
Second, technical patterns pressured Bitcoin. Bitcoin formed a double top around $32,000—a chart formation that is typically interpreted as bearish in price-action analysis. These technical signals increase the possibility of continued downside for the coin.
Third, fear spread across broader markets, reflected in sell-offs in both equities and bonds. Yields on government bonds in many developed economies jumped, with U.S. 10-year yields reaching levels not seen since 2012 and 30-year yields climbing to highs last seen in 2007. Bond yields move inversely to prices, and rising yields often weigh on risk assets like cryptocurrencies.
Crypto prices were also hurt by weaker-than-expected data from China, which is experiencing its slowest economic growth in years. Data released last week showed retail sales, industrial output, and fixed-asset investment slowing rapidly. China remains an important player in the crypto ecosystem and accounts for a significant share of global exchange volume.
Shiba Memu still thriving
Shiba Memu, an upcoming cryptocurrency that blends meme coin features with artificial intelligence elements, continues to gain traction. Information on the project’s website indicates developers have raised more than $2.1 million from investors worldwide. Over the past two months they reportedly distributed more than 68.1 million tokens.
The token sale for Shiba Memu has a unique structure where the token price rises daily. As a result, early buyers have seen rapid increases in value simply by holding the token.
Shiba Memu’s momentum is tied to the sectors its developers emphasize. Artificial intelligence has been among the fastest-growing industries this year and helped push companies like Nvidia to market capitalizations above $1 trillion. Meme coins have also posted notable gains, with several tokens—such as Pepe—turning early investors into instant millionaires.
With growing attention around the project, Shiba Memu’s price could surge further as it prepares to list on both centralized and decentralized exchanges. Token availability and listing details will determine how the market responds in the coming weeks.