Analyst: Extreme Fear Could Fuel SHIB Rally as Crypto Liquidity Shifts in 2026
Market analyst Eze Wilberforce of Leaftin argues that extreme market fear may precede a strong crypto recovery in 2026, potentially benefiting tokens like Shiba Inu (SHIB). Citing historical cycles—Shiba Inu’s 2021 surge and Bitcoin’s 2020–21 breakout—Wilberforce points to the Crypto Fear Index reading of 5 as evidence of pervasive pessimism that often appears near market turning points. He attributes the next phase to structural liquidity realignment and broader capital flows rather than short-term sentiment. Industry figures (including Changpeng Zhao, Arthur Hayes, Raoul Pal, Charles Hoskinson, Brad Garlinghouse, and Tom Lee) are cited as proponents of a larger crypto ‘super cycle,’ with various bullish Bitcoin targets ranging from about $180,000 to $250,000. Current prices noted: Bitcoin near $67,900 and SHIB at approximately $0.000006552. Wilberforce and others stress no guarantees: short-term volatility and external risks remain, but prolonged negative sentiment plus improving macro liquidity could set the stage for a multi-asset rally in 2026.
Bullish
The article frames the news as a potential precursor to a bullish phase driven by structural liquidity and historical precedent where deep pessimism preceded major rallies (e.g., BTC 2020–21, SHIB 2021). Key supportive points: Crypto Fear Index at extreme low (5), prominent industry figures predicting strong multi-year growth, and the analyst’s thesis that capital flows and macro liquidity will matter more than short-term fear. For traders, this implies a higher probability of risk-on moves if macro liquidity indicators and on-chain flows confirm accumulation. Short-term impact: continued volatility and downside risk until a clear liquidity shift or macro catalyst appears. Long-term impact: if a ‘super cycle’ scenario unfolds, correlated upside across BTC and altcoins (including SHIB) is likely, favoring accumulation strategies, scaled entries, and volatility-tolerant positions. Caveats: no guarantee—external shocks, regulatory actions, or failure of institutional inflows to materialize would negate the bullish thesis. Historical parallels (2020–21 BTC and 2021 SHIB) support the narrative but do not ensure timing or magnitude.