Traders are once more pouring cash into meme-focused cryptocurrency Shiba Inu (SHIB) in an indication of warning for bitcoin (BTC) merchants.
Open curiosity in Binance’s SHIB futures has greater than doubled to $101.65 million this month, hitting the very best since Feb. 5, based on data source Coinglass. SHIB futures are sized at 1,000 SHIB per contract with as much as 25 occasions leverage.
SHIB’s market worth has jumped almost 32% to $6.58 billion amid optimism that an impending layer-2 launch will assist the cryptocurrency shed its meme-coin tag.
A rise in open curiosity alongside an increase in market capitalization suggests an inflow of latest cash in the SHIB market. This state of affairs has traditionally presaged weak spot in bitcoin, the main cryptocurrency by market worth.
SHIB’s open curiosity has risen above the $100 million mark at the least seven occasions since its inception. The earlier six spikes marked native bitcoin worth tops.
The sample is according to conventional markets the place outsized beneficial properties in meme shares relative to defensive performs are seen as a opposite indicator for the broader market. Bitcoin, the main cryptocurrency by market worth, has traded useless flat close to $30,000 this month amid the SHIB rally, CoinDesk information present.
Previous efficiency, nonetheless, is just not a assure of future outcomes and a few analysts expect bitcoin to renew the uptrend.
A Bitcoin Warning Signal Blares From Surging Interest in Shiba Inu finance.yahoo.com 2023-08-13 03:38:49
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