Shiba Inu Faces Pullback as 7.5M SHIB Goes Up in Flames Amid Market Consolidation

Burn Rate Explosion Fails to Halt SHIB Price Decline

Shiba Inu has experienced a significant uptick in token destruction activity over the past day, with blockchain data revealing that over 7.5 million tokens have been removed from circulation. The annualized burn rate saw a dramatic 396% jump within a 24-hour window, according to Shibburn tracking data. However, this accelerated destruction mechanism has not translated into immediate price support for the token.

Over the seven-day period, approximately 16.9 million SHIB tokens were incinerated, though this represents a 77% decrease compared to the previous week’s burn velocity. The data suggests that while token scarcity mechanisms remain active, their impact on price momentum appears limited by broader market dynamics.

Market Headwinds Follow Bitcoin’s Peak

SHIB’s recent weakness stems from profit-taking activity across the altcoin sector following Bitcoin’s spectacular run. The flagship cryptocurrency had climbed to unprecedented levels, surpassing $125,000 before encountering resistance. Updated data now reflects Bitcoin trading near $126,080, marking fresh all-time highs.

As investors locked in gains from the Bitcoin rally, secondary tokens including Shiba Inu experienced selling pressure. SHIB declined 0.2% over the last 24 hours, settling around $0.00001268. The pullback appears tactical rather than fundamental, with market participants reassessing positions ahead of upcoming macro catalysts.

Macro Headwinds Could Reshape Risk Appetite This Week

The broader cryptocurrency market faces potential volatility from several U.S. economic and policy developments. The federal government shutdown, which commenced in early October, persists as legislative negotiations stalled. This impasse has created a void in economic data releases, most notably the delayed employment report that was scheduled for last week.

Key upcoming catalysts include speeches from multiple Federal Reserve officials. Fed Governor Stephen Miran is slated to speak on Wednesday, while Fed Chair Jerome Powell will address markets on Thursday. The FOMC meeting minutes release on Wednesday will likely attract significant scrutiny from traders parsing monetary policy signals.

Additional data points on the horizon include October 7th remarks from five Federal Reserve speakers and NY Fed inflation expectations on the same date. Consumer sentiment indicators are scheduled for October 10th release, providing another potential inflection point for risk sentiment.

The confluence of policy uncertainty and economic data drought may create trading opportunities or volatility for token holders, with SHIB’s performance likely tied to broader altcoin sentiment shifts during this period.