In a startling turn of events, the Shiba Inu (SHIB) token has plummeted by a staggering 22% in the past two hours. Consequently, the price of SHIB has remained stagnant at $0.0000094 per token, adding zero value amidst a $500 million bloodbath in the cryptocurrency market.
This sudden collapse in SHIB’s value is part of a broader decline in the cryptocurrency market. Nearly half a billion dollars’ worth of positions were liquidated within just an hour, marking an astonishing 91.3% of long positions. This massive event sent shockwaves of deleveraging across the cryptocurrency space.
Amidst this turmoil, derivatives linked to SHIB witnessed a surge in trading volume, experiencing a 150% increase. However, open interest in contracts simultaneously decreased by 20%, shedding light on the nature of deleveraging in this sell-off.
Speculations Surrounding Bitcoin Exchange-Traded Fund (ETF)
The apparent driver behind this bearish whirlwind seems to be a foreboding message from a crypto financial services company. The company anticipates that the Securities and Exchange Commission (SEC) will deprive all issuers of the ability to create immediate Bitcoin Exchange-Traded Funds (ETFs) in January 2024.
Matrixport, a financial services company, warns of potential successive liquidation events if the SEC fails to give the green light. It anticipates Bitcoin’s price to range between $36,000 to $38,000 according to its analysts.
With the final deadline on January 10th for the Securities and Exchange Commission’s decision on the exchange-traded Bitcoin fund looming, the cryptocurrency market braces for increased volatility. As the date nears, the industry is rife with varying degrees of reliable internal information, adding an air of uncertainty that is sure to test market participants’ nerves in the coming days.
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