The meme-focused cryptocurrency Shiba Inu (SHIB) is experiencing renewed attention, with its open interest in futures contracts on Binance surpassing $100 million for the first time since February. This development raises a potential cautionary signal for traders in the Bitcoin (BTC) market.
Shiba Inu’s Momentum and Bitcoin Connection
Shiba Inu’s market value has surged by almost 32% to $6.58 billion, driven by optimism surrounding an upcoming layer-2 launch. This improvement aims to shift the cryptocurrency’s perception away from a mere meme coin.
Historically, a rise in open interest coupled with increased market capitalization has indicated an influx of new funds into the SHIB market. This trend has often been associated with weakening performance in Bitcoin, the predominant cryptocurrency.
Parallel with Traditional Market Indicators
The scenario echoes patterns observed in traditional markets, where significant gains in meme stocks relative to defensive options act as a counter indicator for the broader market. During SHIB’s rally, Bitcoin has maintained a relatively stable stance around $30,000, as per CoinDesk data.