Shiba Inu briefly climbed back to $0.00000620 following a market-wide rebound, but the rally looks fragile. According to CoinGecko, SHIB jumped 21.7% over the past week and is up more than 31% on the monthly chart — a welcome move after a year-and-a-half of muted momentum. Still, the dog-themed token quickly showed signs of weakness, slipping to about $0.000005576 and leaving room for further downside. What’s driving the volatility - Catalyzing the recent rally was a high-profile White House cryptocurrency event hosted by former President Trump, who told assembled CEOs and founders that the US may buy a “large amount” of Bitcoin and other cryptocurrencies. The remarks spurred a surge in investor sentiment that lifted prices across the market. - That optimism, however, is unconfirmed and could evaporate if the government purchase does not materialize, leaving memecoins like SHIB particularly exposed to sharp reversals. - Market mechanics amplified the pullback: nearly $550 million in long positions were liquidated in under an hour earlier today, and Bitcoin — often the market leader — is showing corrective pressure. A dip in BTC typically drags the broader market down with it. Macro backdrop to watch - Inflation remains a risk despite a July 2026 drop in the CPI; inflation is still above the Fed’s 2% target. If it fails to cool further, the Fed could tighten policy, pushing investors toward lower-risk assets and away from speculative tokens like SHIB. - CME FedWatch currently shows a 60.1% probability that rates will remain unchanged at the next Fed meeting and a 39.9% probability of a rate hike — a split that underscores continued market uncertainty. Bottom line SHIB’s recent gains highlight how quickly sentiment can swing in crypto markets — boosted by headline-driven optimism but vulnerable to liquidations, Bitcoin corrections, and macro shocks. Traders should watch BTC price action, liquidation flows, any confirmation of U.S. crypto purchases, and incoming inflation data to gauge whether this rally has legs or fizzles into a broader correction. Read more AI-generated news on: undefined/news