Investors are once again becoming more interested in the cryptocurrency Shiba Inu (SHIB), which is based on a meme. This is making some people more cautious about trading bitcoin (BTC).
This month, the value of open positions in SHIB futures on Binance has more than doubled, reaching $101.65 million. Coinglass, a data source, says that this rise is the highest level since February 5. The contracts for these SHIB futures are each worth 1,000 SHIB, and you can use up to 25 times as much leverage as you want.
The market value of SHIB has gone up by a large amount, nearly 32%, to $6.58 billion. This optimism comes from the belief that the upcoming launch of layer-2 could help this cryptocurrency shake off its reputation as a meme-driven coin.
The SHIB market may be getting more money because open interest is going up and market capitalization is going up. In the past, when this has happened, bitcoin, the most valuable cryptocurrency on the market, has gone down.
At least seven times since SHIB started, the open interest has been more than $100 million. In each of the six previous times, the price of bitcoin reached a local peak at the same time.
This trend fits with what people have seen in traditional markets, where big gains in meme-related stocks compared to gains in more conservative investments often mean the opposite for the market as a whole. While the SHIB rally has been going on, CoinDesk data shows that bitcoin, the most popular cryptocurrency, has been trading mostly flat around the $30,000 mark this month.
But it’s important to remember that what happened in the past doesn’t mean what will happen in the future. Some analysts think that bitcoin will keep going up.
