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SHIB futures interest surge surpasses $100 million

Bullish Expectations: SHIB Boosts Bitcoin Projection Above $69,000

TL;DR

  • Interest in SHIB futures exceeds $100 million: Indicative of increasing trading activity in Shiba Inu.
  • Cryptocurrency Correction Warning: History shows high interrelation between open interest in SHIB and corrections in Bitcoin.
  • Bullish Forecast for Bitcoin: Expected to surpass $69,000 due to supply and demand imbalances, along with inflows into ETFs.

The cryptocurrency market is experiencing significant turmoil amid signs of rampant speculation, especially with recent attention focused on the Shiba Inu meme coin (SHIB).

A report reveals that open interest in SHIB futures has surpassed $100 million, suggesting exponential growth in trading activity around this cryptocurrency.

However, this rise is also accompanied by warning signs, as historically, such high open interest in SHIB has preceded corrections in the price of bitcoin.

SHIB’s market value has increased more than 130% in the last seven days, reaching $13.44 million, according to official data from CoinGlass.

This rapid rise indicates a significant influx of new capital into SHIB, but is also seen as a symptom of speculative excess.

Importantly, these episodes of market exuberance are often followed by corrections, suggesting caution for investors, especially those betting on the continued rise of cryptocurrencies.

On the other hand, the report notes a notable increase in trading volume in South Korea, indicating increased speculative activity across the cryptocurrency market  

This “wave of retail activity” phenomenon, as described by Markus Thielen, founder of 10X Research, extends beyond SHIB

Thielen also offers a perspective on the possible future behavior of bitcoin.

SHIB futures hit record $100 million in interest

It suggests that bitcoin could hit a new all-time high above $69,000 this week due to a significant imbalance in supply and demand.

Inflows into US market-based ETFs far exceed the amount of BTC created daily, which has led to a 1:10 imbalance in supply and demand.

Additionally, it highlights that outflows from the Grayscale ETF (GBTC) have slowed recently, while flows into the BlackRock ETF (IBIT) are expected to resume this week.

As the price of bitcoin continues to rise and the cryptocurrency market shows signs of speculative activity, investors should be aware of the potential risks.

While optimism may be high, corrections are an inherent part of the volatile nature of the cryptocurrency market, and caution is always advisable.

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