Shiba Inu Plunges 60% Since January 2025: Hold Your Nerve or Cut Losses?

Memecoin carnage continues as Shiba Inu sheds more than half its value in a brutal year-long slide.

Hold or Fold?

The 60% crash since January 2025 has left the SHIB army reeling. This isn't a dip—it's a full-blown correction that's vaporized gains and tested the 'diamond hands' mantra to its limit. The charts paint a stark picture: relentless selling pressure with few signs of a sustained reversal.

Anatomy of a Meltdown

What drives a token to lose sixty percent of its worth? Look beyond the dog-themed branding. It's a classic cocktail of waning speculative hype, broader crypto market rotations into perceived 'safer' assets, and that old Wall Street favorite—profit-taking masquerading as a strategic pivot. The crowd chases the next narrative, leaving last cycle's darling in the dust.

The Psychology of the Bag Holder

Selling now locks in a painful loss. Holding demands a stomach for more potential downside and a belief in a resurrection story few can confidently script. It's the ultimate test of conviction versus capitulation. Every percent drop whispers 'get out,' while every faint green candle screams 'this is the bottom.'

The Verdict: Greed, Fear, and Real Talk

There's no one-size-fits-all answer, only trade-offs. Holding is a high-stakes bet on a sentiment reversal with no guaranteed timeline. Selling is a pragmatic admission that capital might work harder elsewhere—perhaps in an asset that doesn't require explaining a dog meme to your financial advisor. Sometimes the smartest move is to stop rationalizing a bad trade and free up capital for the next opportunity. After all, in crypto, loyalty is often just the polite term for refusing to take a loss.

Should You Sell Your Shiba Inu Holdings, Or Buy The Dip?

Shiba Inu (SHIB) is easily one of the most popular cryptocurrencies in the market. The asset had an incredible run during the 2021 bull market, rallying by many million percent in just a few months. Early SHIB investors made big returns with minimal investments. However, investors who bought at the top are sitting on heavy losses. SHIB’s price has fallen by more than 90% from its 2021 all-time high.

While many may decide to sell their Shiba Inu (SHIB) coins and take the loss, it may not be the smartest thing to do just yet. SHIB’s lackluster performance comes amid a larger bearish market environment. Macroeconomic uncertainty runs rampant, and the crypto market has taken a back seat. Moreover, investors are taking a risk-averse approach, evident by the fact that gold and silver have hit multiple all-time high over the last few months.

There is a chance that Shiba Inu (SHIB) will recover its losses over the coming months. Many anticipate the crypto market to rebound, and for Bitcoin (BTC) to hit a new all-time high in 2026. Bernstein expects BTC to breach the $150,000 mark sometime this year. BTC hitting a new peak could trigger a market-wide rally. Shiba Inu (SHIB) could surge to multi-year highs under such circumstances.

Additionally, Goldman Sachs expects the Federal Reserve to roll out two 25-basis-point interest rate cuts in June and September of this year. Two rate cuts could lead to investors taking on more risks. shiba inu (SHIB) and other risky assets could benefit from such a development. Therefore, holding on to your SHIB tokens, or buying the dip, could prove to be a lucrative move.