Shiba Inu Rally May Reflect Short Liquidation Imbalance After Powell’s Jackson Hole Remarks

• Short squeeze drove the imbalance:

• Shiba Inu jumped from $0.00001202 to $0.00001287, triggering forced liquidations.

• Market-wide short liquidations reached about $206 million in the last hour.

Shiba Inu liquidation imbalance: intraday short squeeze triggered $53K+ liquidations; read the full breakdown and market context — updates and analysis from COINOTAG.

What caused the Shiba Inu liquidation imbalance?

Shiba Inu liquidation imbalance was caused by a rapid price spike that forced short positions to close, creating a 2,491% disparity between shorts and longs in the hour of the move. The imbalance followed a broader crypto bounce after Fed Chair Jerome Powell signaled a possible September policy adjustment.

How did Jerome Powell’s Jackson Hole speech affect crypto markets?

Powell left the door open to an interest-rate cut at the Fed meeting scheduled for Sept. 16–17, saying “the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.” Markets reacted quickly: major tokens Bitcoin and Ethereum gained 3% and 7% respectively in the hour after the remarks. Shiba Inu rose nearly 5% and briefly spiked from $0.00001202 to $0.00001287, according to CoinMarketCap data.

That sudden move provoked liquidations across derivatives markets. On the hour, total market short liquidations reached roughly $206 million. CoinGlass data shows Shiba Inu recorded $53,390 in total liquidations — $51,300 in shorts and $2,060 in longs — creating a 2,491% imbalance in favor of long-side liquidations being negligible.

Why did shorts dominate the liquidations?

Short sellers were concentrated near the prior price band, so the rapid uptick removed liquidity and triggered stop-losses. Smaller-cap and high-volatility tokens like Shiba Inu are particularly vulnerable to short squeezes when macro events cause quick directional shifts.

Frequently Asked Questions

How much did the crypto market liquidate in the hour of the move?

Approximately $206 million in short liquidations occurred across the market in the last hour as traders were caught off guard by the quick reversal following Fed commentary.

What were Shiba Inu’s intraday price levels during the squeeze?

Shiba Inu rose from $0.00001202 to $0.00001287 in the early Friday session, creating a large green hourly candlestick and driving concentrated short-liquidation activity (CoinMarketCap data).

Key Takeaways

• Rapid macro-driven moves: Fed commentary can swiftly reverse crypto sentiment and force liquidations.
• Imbalance specifics: Shiba Inu saw $53,390 in liquidations with a 2,491% short/long imbalance.
• Risk management: Use position sizing and stop-losses to limit exposure to sudden squeezes.

Conclusion

Shiba Inu’s liquidation imbalance underscores how macro signals — in this case from Fed Chair Jerome Powell — can trigger outsized moves in volatile altcoins. COINOTAG will continue to monitor price action, liquidation metrics, and Fed developments as markets approach the September policy meeting. Stay informed and manage risk accordingly.

Published: 2025-08-22 · Updated: 2025-08-22 · Author: COINOTAG