Why Altcoins Like Shiba Inu and Cronos Were Zooming Higher Today

What happened

A frothy equity market and some positive developments on the cryptocurrency front were driving altcoins higher in late afternoon trading Tuesday. Shiba Inu (SHIB 3.10%) was up nearly 3% across the preceding 24 hours, while Cronos (CRO 2.68%) was teasing a 2% gain. Ethereum Classic (ETC 9.74%) and Lido Staked Ether (STETH 9.87%) were doing even better, with both reaching nearly 9%.

So what

When investors are bullish on stocks, they tend to be bullish on cryptocurrencies too. On Tuesday a great many of the more speculative stocks were on the rise, indicating an increasing appetite for risk, in contrast to recent and more conservative trends. Crypto as an asset class is considered to be particularly risky, so it’s doing better too.

On Tuesday, this was compounded by other developments more specific to coins and tokens. Bloomberg Businessweek, a publication with a long and storied history, took the unusual step of publishing but a single (albeit very long) article in its most recent issue. Titled simply “The Crypto Story,” it’s an exploration of the current state of the market, and at points is rather complimentary and bullish on the sector.

Another news item moving the market was the U.K. House of Commons’ approval of cryptocurrencies as regulated financial instruments. The legislative body has included such a measure in its financial services and markets bill, which is currently in the committee stage. Earlier this year, the sweeping bill was introduced by freshly appointed Prime Minister Rishi Sunak, then a member of Boris Johnson’s cabinet.

Now what

It almost goes without saying that it’s too early to tell whether the crypto winter is truly thawing, and whether altcoins might continue their rise. Shiba Inu in particular, but also Cronos, Ethereum Classic, and Lido Staked Ether can be volatile like so many other coins and tokens, so buyer beware.