Foreign media reports indicate that Shiba Inu (SHIB) has fallen below $0.000005, returning to levels seen around May 2021. The article argues that this decline has put greater pressure on long-term holders regarding unrealized losses, and market sentiment has further weakened.

Returning to multi-year lows

The report noted that SHIB was last in this price range in early 2021. As prices continue to fall, losses are widening for holders, and the market's tolerance for such highly volatile meme coins is decreasing.

The article also points out that this is not the first time SHIB has fallen below this level. During the bear market of 2022, the token also fell below $0.000005, but the current overall market pressure makes its recovery even more difficult.

Bitcoin's price movement remains key.

Foreign media believe that SHIB's short-term direction remains highly correlated with Bitcoin. As a core asset in the crypto market, if Bitcoin continues to weaken, other high-risk tokens will typically also come under pressure, making it difficult for SHIB to stage an independent rebound.

The article also mentions that the current crypto market is generally weak, with not only meme coins under pressure, but also a significant portion of Bitcoin holders experiencing losses. In this environment, risk appetite typically continues to contract.

The conditions for a rebound still depend on a market recovery.

The article argues that assets like SHIB could still see a recovery if the macroeconomic environment and overall sentiment in the crypto market improve. Historically, SHIB experienced a rapid rise from its lows in 2021, reaching an all-time high of $0.00008616 in November of that year.

However, foreign media also emphasized that SHIB is a more volatile meme coin, and its price is more sensitive to changes in sentiment. If the market continues to decline, some investors may choose to cut their losses and exit the market, which would further increase selling pressure and cause the price to continue to fall.