Investors are beginning to pour money back into Shiba Inu (SHIB), the leading memecoin for Bitcoin (BTC) investors, as a precautionary measure. Data shows that the open interest in SHIB futures has more than doubled this month, reaching $101.65 million, indicating an increasing market risk.
Open Interest in Shiba Inu Reaches the Highest Level in the Last 6 Months
According to data provided by crypto data source Coinglass, the open interest in Shiba Inu futures on Binance has more than doubled this month, reaching $101.65 million. This marks the highest level of open interest in SHIB since February 5th. SHIB futures are sized at 1,000 SHIB per contract with leverage of up to 25x.
The market value of SHIB has increased by approximately 32% to $6.58 billion, fueled by optimism that the upcoming launch of Layer 2 Shibarium will help the altcoin shed its “memecoin” label. In addition to the increase in market value, the rise in open interest indicates new money flowing into the SHIB market. Historically, this has been a precursor to a downturn in Bitcoin, which is currently the largest cryptocurrency by market value.
According to CoinMarketCap, SHIB is trading at $0.00001084, representing an 8.19% increase in the last 24 hours. Data shows that SHIB has risen by 19.81% in the past 7 days and 43.07% in the past 30 days.
Influx of Funds into SHIB Indicates Potential Decline in Bitcoin Price
The increase in funds flowing into SHIB futures is considered a signal that the price of the largest cryptocurrency, Bitcoin (BTC), has peaked and is likely to enter a downward trend. The open interest in the memecoin has surpassed $100 million at least seven times since its inception, with each previous surge coinciding with a decline in Bitcoin’s price.
At the time of writing, the crypto king is trading at $29,370, experiencing a 0.07% decrease in the last 24 hours, with a market capitalization of $571.44 billion.
