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The dog cryptocurrency Shiba Inu is seeing a negative correlation with the largest cryptocurrency by market cap, Bitcoin.
According to data from on-chain analytics firm IntoTheBlock, the 30-day correlation coefficient between Shiba Inu and Bitcoin has fallen to a new low of -0.24. However, Shiba Inu continues to show a positive correlation with other crypto assets such as Ethereum and Dogecoin, with the exception of Chainlink.
The correlations are on a scale of -1 to +1. Lower prices for one are associated with higher prices for the other when the values are negatively skewed.
However, a negative correlation is a relationship between assets that move in opposite directions. If the correlation value is less than zero, it is safe to assume that the two assets are moving in opposite directions. As a result, Bitcoin and Shiba Inu appear to be moving in opposite directions.
This is when Shiba Inu charts a new course, focusing on utility as its core value in its quest to abandon meme coin status.
At press time, Bitcoin and Shiba Inu prices had remained relatively stable over the past 24 hours. Bitcoin is currently up 4.12% in September, while Shiba Inu is down 8.14% for the month.
October suggests positive sentiment for SHIB
The price of Shiba Inu has been range-bound since the beginning of September, and towards the end of the month the range appears to be getting even tighter, indicating an impending move if this trend continues.
Despite SHIB’s weak performance in previous months, October looks promising given historical precedent.
On average, SHIB saw an increase of 420% in October. For example, Shiba Inu reached an all-time high of $0.000088 in October 2021.
However, given the volatility of the crypto market and the fact that past performance is no guarantee of future results, Shiba Inu price action in October remains an open question.
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