With Bitcoin reaching record highs, the surge in speculative trading around Shiba Inu (SHIB) is raising concerns about potential market correction.
Interest in SHIB futures contracts has exceeded $100 million.
According to data from CoinGlass, the nominal open interest for perpetual SHIB futures contracts has surpassed $100 million for the first time since August 2023.
These futures contracts, with a size of 1,000 SHIB per contract and leverage of up to 25x, indicate a significant influx of speculative capital into SHIB trading.
While the increase in market capitalization and open interest demonstrates growing interest in SHIB, it also serves as a warning sign of excessive speculation and potential market correction in the cryptocurrency market.
In previous historical events, when the open interest for SHIB futures contracts exceeded $100 million, it coincided with the mid-term or local peak of Bitcoin’s price, raising concerns about an overheated market.
Markus Thielen, founder of 10X Research, emphasized that the wave of retail activity spreading through altcoins and memecoins has contributed to the increase in trading volume on Korean exchanges.
Despite these warning signs, Thielen predicts that Bitcoin could reach a new all-time high of $69,000 this week, thanks to inflows into BTC ETFs domiciled in the United States continuing to outpace the creation of new BTC on a daily basis.
