Traders are once more pouring cash into meme-focused cryptocurrency Shiba Inu (SHIB) in an indication of warning for bitcoin 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, in accordance with knowledge supply Coinglass. SHIB futures are sized at 1000 SHIB per contract with as much as 25x 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 recent cash within the SHIB market. This situation has traditionally presaged weak point in bitcoin, the main cryptocurrency by market worth.
SHIB’s open curiosity has risen above the $100 million mark no less than seven occasions since its inception. The earlier six spikes marked native bitcoin worth tops.
The sample is in line with conventional markets the place outsized good points 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 lifeless flat close to $30,000 this month amid the SHIB rally, CoinDesk knowledge present.
Previous efficiency, nevertheless, will not be a assure of future outcomes and a few analysts count on bitcoin to renew the uptrend.