The Shiba Inu token (SHIB) has faced a substantial setback, plummeting to a new monthly low.
The current price of SHIB is $0.00000963 per token, struggling to recover amidst an overall crypto market decline.
A massive liquidation event has occurred, liquidating nearly half a billion dollars’ worth of positions in just an hour.
The Shiba Inu token (SHIB) has experienced a significant setback, plunging to a new monthly low and shedding 10% in the past two hours.
The SHIB price now stands at $0.00000963 per token, failing to gain any traction amidst a broader crypto market bloodbath that has seen losses totaling $500 million.
Market Turmoil and Liquidations Triggered Shiba Inu Price Drop
The swift collapse of SHIB’s value is reflective of a broader downturn in the cryptocurrency market. CoinGlass reports a massive liquidation event, with nearly half a billion dollars’ worth of positions liquidated within a mere hour.
Notably, 91.3% of these liquidated positions were long positions, underscoring the severity of the market turmoil. The shockwaves from this massive deleveraging event have reverberated throughout the crypto space.
Amidst the market turmoil, SHIB-linked derivatives have seen a surge in trading volume, experiencing a remarkable 150% increase. However, open interest in these derivatives has simultaneously declined by 20%, indicating the deleveraging character of this sudden downturn.
Matrixport’s Ominous Warning
The trigger for SHIB’s downward spiral appears to be an ominous message from Matrixport, a crypto financial services company. Matrixport anticipates that the U.S. Securities and Exchange Commission (SEC) will deny all issuers the ability to create spot Bitcoin exchange-traded funds (ETFs) come January 2024.
This warning from Matrixport has set off alarms in the market, raising concerns about potential cascading liquidations.
Matrixport’s analysts predict a Bitcoin price range of $36,000 to $38,000 if the SEC fails to approve spot Bitcoin ETFs. As the January 10 deadline for the SEC’s decision on the spot Bitcoin ETF approaches, the crypto market is bracing for heightened volatility.
As SHIB and the broader crypto market navigate these turbulent times, investors and traders are closely monitoring developments, looking for signals that could indicate a potential reversal or further intensification of the ongoing market downturn.