In a surprising development, the Shiba Inu token (SHIB) has experienced a significant drop, plummeting to a new monthly low and losing 22% in value within just two hours. Consequently, the price of SHIB has stagnated at $0.0000094 per token, failing to gain any ground amid a $500 million crypto market downturn.
The sudden decline in SHIB’s value is indicative of a larger downturn in the cryptocurrency market. CoinGlass has reported that nearly half a billion dollars’ worth of positions were liquidated in just one hour, with an overwhelming 91.3% of these being long positions. This mass liquidation event has sent shockwaves throughout the crypto space.
During this tumultuous period, SHIB-linked derivatives have experienced a surge in trading volume, seeing a 150% increase. However, open interest has simultaneously declined by 20%, underscoring the deleveraging nature of this market downturn.
Rumors are circulating about a potential spot Bitcoin ETF, contributing to the downward spiral. Matrixport, a crypto financial services company, has suggested that the SEC may deny issuers the ability to create spot Bitcoin exchange-traded funds (ETFs) starting in January 2024. This gloomy prediction anticipates potential cascading liquidations and forecasts a Bitcoin price range of $36,000 to $38,000, according to analysts at Matrixport.
The looming Jan. 10 deadline for the SEC’s decision on the spot Bitcoin ETF is creating considerable anticipation in the crypto market. As the date draws near, a mix of insider information, with varying levels of reliability, is circulating within the industry, injecting an element of uncertainty that will undoubtedly test the nerves of market participants in the days to come.
This situation underscores the volatility and unpredictability that characterize the crypto industry, emphasizing the need for investors and traders to stay informed and adapt to rapidly changing market conditions.
