According to a report by CoinDesk, the cryptocurrency market is accumulating excessive speculative behavior, as the open interest of Shiba Inu Coin ($SHIB) futures contracts has exceeded $100 million for the first time since August 2023. This suggests the presence of a speculative bubble in the market. Nonetheless, the founder of 10X Research remains optimistic about the continued rise of Bitcoin this week, as he believes there will be a resurgence in the inflow of funds into spot ETFs.
Data from CoinMarketCap shows that the market value of Shiba Inu Coin has surged from around $5.6 billion to $15.8 billion in the past seven days, with a growth rate of approximately 170%. The increase in open interest and market value represents the influx of new funds into this meme coin. However, this could be a sign of excessive speculation and an impending market correction.
According to data from CoinGlass, whenever the open interest of SHIB futures contracts exceeds $100 million, it usually indicates that the price of Bitcoin has reached a temporary high point in its price cycle.
Source: CoinGlass
In addition, according to data tracked by cryptocurrency research firm 10X Research, the daily trading volume in South Korea has recently reached or approached $8 billion, significantly higher than the daily volume observed before the Bitcoin bull market, which was around $1 billion. Markus Thielen, the founder of 10X Research, commented, “There has been a wave of retail activity from altcoins to meme coins.”
It is expected that there will be a rebound in the inflow of funds into spot ETFs and a positive outlook for the continued rise of Bitcoin. Thielen added that due to the significant inflow of funds into the US Bitcoin spot ETF, which exceeds the daily production of Bitcoin, the supply-demand imbalance has grown to a ratio of 1:10. Therefore, Bitcoin may surpass $69,000 and reach a new all-time high this week.
Thielen pointed out that over the past weekend, there has been an accelerated outflow of funds from Grayscale’s Bitcoin spot ETF (GBTC), with a net outflow of $600 million last Thursday, marking the largest single-day redemption in over a month. Meanwhile, data from 10X Research shows that BlackRock’s IBIT had a net inflow of $500 to $600 million for three consecutive days before dropping to $202 million last Friday.
However, Thielen believes that this slowdown is only a temporary phenomenon at the end of the month, and there may be a strong resurgence in the inflow of funds this week. He stated:
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