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Dog-themed cryptocurrency Shiba Inu has faced a sudden liquidation on the market, leading to a flushing out of leveraged long positions.
The market reversed an earlier rebound in the early Tuesday session as investors awaited the Federal Reserve's July meeting minutes and its annual Jackson Hole symposium, scheduled to be held from Thursday to Saturday. The Fed will release minutes from its July 29-30 policy meeting, which left rates unchanged on Wednesday, and Fed Chair Jerome Powell is slated to give a speech on Friday.
Bitcoin reversed to trade near $113,000 after previously surpassing $116,000. Major cryptocurrencies, including Shiba Inu, mirrored this trend, which led to an unwinding of long positions on the derivatives market.
Shiba Inu sees 699,000% liquidation imbalance
Shiba Inu dropped to $0.0000122 after previously reaching $0.0000128, catching traders who were betting on price increases unaware.
According to CoinGlass data, in the last hour, the total liquidation for SHIB came to $111,860; long liquidations accounted for $111,840 while short liquidations came to a surprising $16.50, with the disparity accounting for a 699,000% imbalance.
The surprising $16.50 figure recorded in short liquidation suggests that most Shiba Inu traders were anticipating a price increase, but the markets took an unexpected turn.
Around press time, SHIB was trading 1.92% in recent hours to $0.0000123, contributing to 3% and 7% daily and weekly losses, respectively.
In a positive update for Shiba Inu ecosystem, Shiba Inu developer Kaal Dhairya highlighted that development work for LEASH v2 has begun. The Shiba Inu team is also consulting with advisors on features and architecture to future-proof LEASH v2 (potentially Zama).
Dan Burgin
Vladislav Sopov
U.Today Editorial Team