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Investors are currently directing their funds towards the meme-focused cryptocurrency Shiba Inu (SHIB), indicating a sense of caution among bitcoin (BTC) traders. According to data source Coinglass, open interest in Binance’s SHIB futures has more than doubled to $101.65 million this month, reaching its highest level since February 5. SHIB futures are sized at 1,000 SHIB per contract with up to 25 times leverage. The market value of SHIB has increased by almost 32% to $6.58 billion, as there is optimism that an upcoming layer-2 launch will help the cryptocurrency shed its meme-coin label. The rise in open interest and market capitalization suggests an influx of new funds in the SHIB market, which has historically indicated weakness in bitcoin, the leading cryptocurrency by market value. SHIB’s open interest has surpassed the $100 million mark at least seven times since its inception, with the previous six spikes marking local bitcoin price tops. This pattern is consistent with traditional markets, where outsized gains in meme stocks relative to defensive plays are viewed as a contrary indicator for the broader market. CoinDesk data show that bitcoin, the leading cryptocurrency by market value, has traded dead flat near $30,000 this month amid the SHIB rally. However, past performance is not a guarantee of future results, and some analysts anticipate that bitcoin will resume its uptrend.

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