Shiba Inu open interest hits $100 million
- Investors fuel meme coin SHIB with funds, as Binance’s SHIB futures open interest doubles.
- Optimism surrounds SHIB’s move away from meme coin status through Layer 2 launch.
- High SHIB open interest historically coincides with potential bitcoin weakness.
Investors are pouring money into meme-focused cryptocurrency Shiba Inu (SHIB), with open interest in Binance’s SHIB futures more than doubling to $101.65 million this month.
This is the highest level of open interest since February, and it comes amid optimism that an impending Layer 2 launch will help SHIB shed its meme coin tag.
The increase in open interest suggests that there is a lot of new money flowing into the SHIB market. This could be a sign that investors are expecting the price of SHIB to continue to rise.
However, it is worth noting that SHIB’s open interest has risen above the $100 million mark at least seven times since its inception, and the previous six spikes all marked local Bitcoin price tops.
This suggests that a rising SHIB open interest could be a sign of weakness in Bitcoin. Bitcoin traders should therefore be cautious about investing in SHIB at this time.
It is important to note that the cryptocurrency market is volatile and unpredictable, and past performance is not necessarily indicative of future results. Investors should always do their own research before making any investment decisions.
