Continued inflows into US Bitcoin ETFs and the projected expansion of digital asset allocations by institutional investors are key fundamental drivers supporting long-term bullish sentiment. However, geopolitical risks stemming from a massive $20 billion liquidation event and US tariff announcements on China are increasing short-term market volatility and downward pressure, warranting caution. Although the Relative Strength Index (RSI) is in oversold territory, suggesting potential for a short-term bounce, it is advisable to maintain a neutral stance and monitor the market given these conflicting factors.

Fundamental Analysis * Expansion of Bitcoin ETF Options Trading in the US Signs of regulatory easing by the SEC could further encourage institutional investor participation in the Bitcoin market. The expansion of Bitcoin ETF options trading is expected to enhance market liquidity and refine price discovery mechanisms. This enables more sophisticated risk management strategies and lowers the barrier to entry for institutional players. Consequently, new capital inflows into Bitcoin are anticipated, potentially forming a foundation to support medium-to-long-term price appreciation while curbing short-term volatility. Altcoins like SHIB, which tend to correlate with Bitcoin's movements, could indirectly benefit from such shifts in institutional sentiment. * A Massive $20 Billion Liquidation Event in the Crypto Market A record liquidation event totaling $20 billion within the past 24 hours suggests market overheating and excessive leverage utilization. The Crypto.com CEO's call for regulatory investigation into exchanges highlights growing concerns over market fairness and transparency. This large-scale liquidation is exerting downward pressure on the entire cryptocurrency market, including Bitcoin, and increasing volatility in the short term. SHIB is unlikely to be an exception, facing potential short-term price declines due to worsened sentiment and tightening liquidity resulting from this event. * Impact of President Trump's 100% China Tariff Announcement on the Crypto Market The US President's announcement of a 100% tariff on China heightens geopolitical risks and fuels global risk-off sentiment. Consequently, risk assets, including Bitcoin, become more vulnerable to sell-offs, contributing to price declines. The drop in the crypto market sentiment index to the "Fear" level indicates growing investor anxiety. This macroeconomic uncertainty poses a particular downside risk for high-risk altcoins like SHIB, potentially leading to further price depreciation. * Galaxy Digital Raises $460 Million to Convert Texas Bitcoin Mining Facilities into AI Data Centers Galaxy Digital's successful $460 million fundraising effort to convert existing Bitcoin mining facilities into AI data centers signals diversification strategies among crypto-related companies. Investment in AI technology reflects a move towards securing future revenue streams and integration into the broader technology ecosystem, suggesting the evolution and maturation of the crypto industry. While this initiative may not directly impact SHIB's price, it can be viewed positively as an indicator of increased investment appetite for innovation across the sector. * $2.71 Billion Weekly Inflow into US Spot Bitcoin ETFs The sustained, substantial weekly inflows into US spot Bitcoin ETFs demonstrate continued strong institutional interest and conviction in Bitcoin as "digital gold." This represents significant buying pressure for the Bitcoin market, acting as a stabilizing factor and supporting potential price appreciation. As SHIB is heavily influenced by Bitcoin's market sentiment, such positive institutional trends could indirectly boost interest in SHIB and encourage capital inflows. * Projection of Increased Institutional Allocation to Digital Assets According to a State Street report, institutional investors are projected to allocate 16% of their portfolios to digital assets by 2028. This indicates the growing recognition of digital assets as a mainstream asset class, enhancing the overall credibility and maturity of the industry. This long-term trend may present broader investment opportunities not only for Bitcoin but also for altcoins like SHIB. Increased institutional participation is also expected to improve market liquidity and reduce volatility. * Expanding Investment in Blockchain and AI Sectors and Its Impact on the Crypto Market The surge in investments towards AI-related companies, coupled with a record-high correlation between Bitcoin and Nvidia stock prices, suggests a deepening interdependence between AI technology and the cryptocurrency market. Growth in the AI sector could expand the application scope of blockchain technology and foster new use cases. However, concerns about a potential AI bubble present a risk for cryptocurrencies reliant on AI-related technologies, such as AI-themed tokens. While SHIB is not directly linked to AI, the heightened market interest in technology overall might attract broader attention to the cryptocurrency market. * Morgan Stanley Begins Offering Crypto Funds to All Clients Morgan Stanley's decision to expand access to cryptocurrency funds to all clients, previously limited to high-net-worth individuals, is a significant sign of crypto's increasing acceptance as a mainstream asset class within the financial industry. This move will enable a broader range of retail investors to access the crypto market, thereby promoting overall market liquidity and adoption. For meme coins like SHIB, which are highly sensitive to retail investor interest, such expanded access facilitated by financial institutions could act as a catalyst, increasing engagement and attracting new investor segments. Overall Summary The cryptocurrency market experienced extreme volatility yesterday, marked by a massive liquidation event coinciding with President Trump's tariff announcement. Despite these negative factors, continued inflows into US Bitcoin ETFs, projections of increased institutional allocation to digital assets, and Morgan Stanley's expanded crypto fund access signal the market's long-term growth potential and rising institutional interest. While expanding investments in the AI sector holds the potential to drive innovation across the crypto ecosystem, geopolitical risks and signs of market overheating warrant continued caution. SHIB faces both short-term downward pressure and potential for medium-to-long-term recovery, influenced by these macroeconomic factors and shifts in institutional sentiment.

Heightened geopolitical risks stemming from tariff announcements related to China are fostering a global risk-off sentiment, exerting downward pressure on the overall cryptocurrency market. A substantial $20 billion liquidation event carries the risk of triggering cascading liquidations, potentially leading to sharp short-term price declines. Identifying key support levels is currently difficult based on available data, and continued attention should be paid to deteriorating market sentiment and news regarding regulatory tightening.

Over the next 24-48 hours, a minor rebound due to oversold RSI conditions is possible, but upside potential is likely limited by geopolitical risks and liquidation events. In the medium term (one week), macroeconomic indicators, regulatory statements, and institutional investor activity will shape market sentiment and determine the market's direction. Key catalysts to watch include US inflation data, the easing of geopolitical tensions, and the trend of weekly inflows into Bitcoin ETFs.

Overall, the SHIB market exhibits a neutral bias, characterized by a mix of short-term selling pressure and medium-to-long-term bullish drivers. While large-scale liquidations and geopolitical risks present near-term headwinds, inflows into Bitcoin ETFs and growing institutional interest serve as positive factors bolstering market resilience. A prudent investment strategy involves caution regarding short-term volatility, potentially targeting rebounds from oversold levels, or alternatively, awaiting macroeconomic stabilization before considering accumulation in key support areas. This week, monitoring geopolitical developments and ETF flows to gauge price action is crucial. For risk management, it is advisable to manage position sizing carefully and establish clear stop-loss levels. Despite current market uncertainties, the increasing participation of institutional investors signals significant future growth potential. Seizing opportunities based on rational analysis will be key to success.