Shiba Inu jumps 15% as ether trades around $1,600 following PPI release

Quick Take

  • Ether added 1.2% in the past hour as it inched over $1,600.
  • Bitcoin was trading at about $21,500, up 1%.
  • Shiba Inu tacked on 15% in the past day as the memecoin maintained its momentum.

Ether traded above $1,600 for the first time since early November as crypto prices were elevated by lower-than-expected PPI data. 

Ether was trading at $1,598 by 9:20 a.m. EST, up 1.2% in the past hour. Bitcoin gained 1.3% over the previous day to trade around $21,500, according to TradingView data. U.S. PPI data for December came in at 6.2% year-on-year versus expectations of 6.8%, buoying markets.

Dog-themed memecoins soared in price over the past day. Dogecoin gained 3%, while its younger counterpart Shiba Inu jumped over 15% — adding to gains from earlier in the week following its Layer 2 announcement

Typically there are very low levels of liquidity in these memecoins, which means it takes very little support for them to start rallying. But they can just as easily start falling again, said Stephane Ouellette CEO at FRNT Financial.

"The only thing I would point out is that in spite of retail enthusiasm getting completely rerated throughout 2022 for both crypto and macro-related factors, it's always surprising that it hasn't completely died. You did see similar activity in the 2018/19 bear market where you would get small fits of micro-cap tokens rallying periodically, which was usually a head-scratcher," he said.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.