Shiba Inu (CRYPTO: SHIB) is plunging on Thursday. The cryptocurrency lost 4% as of 1:30 p.m. ET and was down as much as 5.1% earlier in the day. The decline comes as the broader crypto market retreats amid growing economic concerns.
President Trump's sweeping tariff announcement has triggered a risk-off sentiment that's hitting speculative assets like Shiba Inu particularly hard.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Tariffs spark economic uncertainty
President Trump announced extensive new tariffs on imports from countries around the globe. The tariffs are levied on almost every trading partner the U.S. has. The scale and breadth of them has shocked the market, since many had hoped the tariffs would be more limited or specifically targeted.
The fear that the tariffs have induced has created a risk-off environment, in which investors move away from speculative assets and toward more secure assets. They fear that the tariffs will lead to higher inflation and rising interest rates, exacerbating the issue.
Cryptocurrency in general is perceived as risky, but as a meme coin, Shiba Inu carries even more peril. It lives or dies on momentum and hype, both very susceptible to the uncertainty and fear that pervades a down market.
While it does have a dedicated fan base, like other meme coins, it lacks any real-world value beyond being a vehicle for pure speculation. I can't recommend Shiba Inu or any other meme coin as a serious investment. Today's decline highlights the token's vulnerability to macroeconomic forces.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $286,347!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,448!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $504,518!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of April 1, 2025
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
