Bitcoin’s Price Recovery Revives Profit Margins For Short-Term Whales, Rally To Extend?

The post Shibarium May No Longer Turbocharge Shiba Inu Price Rally, Here’s Reason appeared on BitcoinEthereumNews.com. Shibarium, the layer-2 blockchain of the Shiba Inu (SHIB) ecosystem, is battling to stay active. Shibarium has slipped from hitting transaction milestones to struggling to record any transactions on its platform, a development that could severely impact SHIB. Shibarium transactions crash from millions to near zero As per Shibariumscan data, the total daily transactions on Shibarium as of Sept. 16 stood at 11,600. This volume of transactions reflects how low the transaction count has dropped for the L2, whose daily average ranged between 3.5 million and 4 million last month. However, in the last week of August, daily transaction volume on Shibarium lost momentum, slipping from 1.3 million to 9,590 as of Aug. 28. This pattern has lingered for much of September, with the highest peak so far being on Sept. 5, when it posted 1.26 million transactions. The low user engagement has greatly affected the transaction count in recent days. In addition, the security breach over the weekend by malicious attackers on Shibarium has probably worsened issues. Although developer Kaal Dhairya reassured the community that the attack to steal millions of BONE tokens was successfully prevented, users’ confidence appears shaken. This has also impacted the price outlook for Shiba Inu, the ecosystem’s native token. Following reports of the malicious attack on Shibarium, SHIB dipped immediately into the red zone. Unlike on previous occasions where investors accumulated on the dip, market participants did not flock to Shiba Inu. Shiba Inu price struggles, can burn mechanism help? With the current near-zero crash in transaction volume for Shibarium, SHIB’s price cannot depend on it to support a rally. It might take a while to rebuild user confidence and for transactions to pick up again. In the meantime, Shiba Inu might have to rely on other means to boost prices from its low levels. This…

The crypto market lost altitude on Tuesday, slipping 2% to about $3.9 trillion as Bitcoin fell toward $112,000 and erased the week’s gains, with roughly $1.7 billion in liquidations accelerating the sell-off as leveraged positions unwound. Bitcoin was last down about 1.8% near $112,561, while Ethereum fell 3.3% to $41,197, BNB dropped 4% to $991.3, and Solana slid 6.2% to $219.03. In the past 24 hours, about $1.7b of mostly long positions were wiped out, the largest long liquidation event this year, Coinglass said. Macro Boost Meets Micro Headwinds, FTX Cash Returns And Sentiment Sours Flows into crypto funds remained a bright spot last week. Spot Ethereum ETFs recorded $556m in net inflows, lifting total net assets to $29.6b, according to SoSoValue. Over the same period, spot Bitcoin ETFs attracted $886.6m, taking total net assets to $152.31b. Macro signals set the stage. The Federal Reserve cut rates by 25 basis points last week to a target range of 4.00% to 4.25%, and signaled two more possible cuts this year. That first move initially buoyed altcoins, which rallied into the weekend. Momentum faded on Monday. Sentiment cooled shortly after the defunct crypto exchange FTX said it will begin its third distribution on Sept. 30, returning about $1.6b to holders of allowed claims as part of its Chapter 11 process. Social gauges turned more cautious. Analysts at Santiment noted on Sunday that more traders are now “betting that the price of Bitcoin will go down, as opposed to betting that Bitcoin’s price will go up,” and said they were seeing a “much more negative narrative forming across social media.” Liquidation Spike Signals Possible Local Low As Funding Turns Negative Positioning also shifted. 10X Research said that sharp liquidation spikes often mark local lows and can raise the odds of a rebound, a view supported by negative funding rates that show faster traders are net short. The note urged traders to weigh positioning, technical signals and how the market is priced into October before buying dips. Industry executives framed the sell-off as a leverage flush rather than a fundamental break. Maja Vujinovic, CEO and co-founder of Digital Assets at FG Nexus, said, “Roughly $1.7B in liquidations reflects excess leverage, not failing fundamentals. Overheated funding post-Fed left traders exposed; once Bitcoin rolled over, forced unwinds hit ETH and alt-books hard.” “But history shows that these ‘leverage washes’ often mark a healthier base. With spot demand, ETF flows, and stablecoin rails intact, we’re more likely heading into consolidation than capitulation and that typically precedes the next sustained leg higher,” she added. Liquidations Drive ‘Margin Call Avalanche,’ Traders See Healthy Reset Traders echoed that view on market structure. Doug Colkitt, initial contributor to Fogo, said, “This is crypto’s version of a margin call avalanche. When Bitcoin sneezes, the entire market catches leverage flu. $1.7B in liquidations isn’t fundamentals breaking—it’s over-levered traders getting rinsed. Leverage is always highest at the top, and when prices roll over, the cascade feeds on itself.” “These flushes are brutal, but they’re also healthy. They reset leverage, shake out weak hands, and clear the runway for the next leg. If you’ve been around crypto long enough, then you already know the cold hard truth: liquidations are the feature, not the bug,” he said. Others pointed to Bitcoin’s relative resilience. Mike Maloney, CEO at Incyt, said, “The $1B+ liquidation wave was driven by long liquidations. The exuberance following an ATH, the anemic Fed cut, and a mismatch of reporting and risk creates a breakdown. The real capture here is that BTC is still the king of crypto markets: despite weathering the worst liquidation, BTC decline and volatility are a fraction of other assets. This suggests to me that the market will bounce up strongly on the back of BTC’s liquidity.” As September draws to a close, traders are watching funding, ETF flows, and the pace of redemptions from bankruptcy estates. For now, the market has reset leverage and attention turns to whether dip buyers step in ahead of October

PANews reported on September 23rd that on-chain data showed that hackers allegedly issued an additional 1 billion UXLINK tokens on-chain, increasing the total token supply to 1.995 billion. Following the issuance, the hackers then continuously sold the tokens via Cow Protocol in batches of 1 million UXLINK at a time.