Shiba Inu (SHIB) issues Bitcoin (BTC) price warning as open futures interest surpasses $100 million

As a sign of caution for Bitcoin (BTC) traders, investors are once again investing money in the meme-focused Shiba Inu (SHIB) cryptocurrency.

According to data source Coinglass, open interest in Binance’s SHIB futures more than doubled this month to $101.65 million, its highest level since Feb. 5. SHIB futures are sized at 1,000 SHIB per contract with up to 25x leverage.

SHIB’s market value is up nearly 32% to $6.58 billion on optimism that an upcoming Layer 2 launch will help the cryptocurrency shed its meme coin tag.

An increase in open interest along with an increase in market cap indicates an influx of new money into the SHIB market. This scenario has historically predicted weakness in Bitcoin, the leading cryptocurrency by market value.

SHIB’s open interest has exceeded the $100 million mark at least seven times since its inception. The previous six spikes marked local bitcoin price highs.

The pattern is consistent with traditional markets, where outsized gains in meme stocks versus defensive stocks are viewed as an opposite indicator for the broader market. Bitcoin, the leading cryptocurrency by market value, was trading little changed at nearly $30,000 this month on the SHIB rally, data from CoinDesk shows.

However, past performance is no guarantee of future results and some analysts expect Bitcoin to resume the uptrend.

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