Meme coin Shiba Inu (SHIB +2.14%) has posted another green day ahead of a highly anticipated Federal Reserve announcement tomorrow, which could impact a broad range of assets, including cryptocurrencies.
CRYPTO: SHIB
Key Data Points
As of 4:45 p.m. ET, this project's native token has risen 3.2% since the markets closed yesterday. That's a decent move that outperforms the returns of all major indexes on the day, suggesting that investors and those betting on macro movements tomorrow are taking on a dovish tilt.
Of course, we'll have to wait to see what's ultimately announced. This upcoming decision (or more aptly, the commentary in the press conference to follow) will provide direction on the path of interest rates heading into 2026. That's pivotal for interest rate-sensitive assets meme traders focus on as trading vehicles, with Shiba Inu among the most pivotal of this group.
Let's dive into today's move and explore why this token is surging higher ahead of tomorrow's key announcement.
Why all the love in the meme token world?
Source: Getty Images.
To be fair, Shiba Inu's performance thus far this year has been dismal. Over the past year, investors have awaited a meaningful catalyst to latch onto, with this meme coin declining by around two-thirds.
Yesterday, reports indicated that more than 400 trades exceeded the key $100,000 threshold, with numerous additional bets placed in the derivatives market. In that more opaque (but critical) space, around $87,000 worth of Shiba Inu positions have been liquidated over the past day, with the vast majority (more than $58,000) liquidated on the short side.
What this may suggest to market participants is that the bearish sentiment that caused this token's 66% decline over the past year may be overdone, at least in the short term. There may be some speculators out there willing to "take the over" on the idea that this upcoming interest rate cut from the Fed may not be as bearish as the market seems to fear.
We'll see, but I expect to see some significant movements in this token for the latter half of the week. Liquidation data is where I'll be focusing most of my attention, and I'd encourage investors and those following this token closely to do the same.
