Sometimes, all Bitcoin (BTC) needs to pump 10% is a positive remark from someone like Elon Musk. The Tesla CEO has been pointed to as the culprit for the recent downturn after the company’s May 12 announcement explaining that it would no longer accept Bitcoin payments due to environmental concerns. Musk followed up by saying that he was looking into other cryptocurrencies that required 99% less energy consumption. However, on Sunday, the situation reversed as Musk reassured the public that Tesla did not sell any additional Bitcoin. The post also said that the electric car producer would resume taking BTC …

Investors tend to define the market as either bullish or bearish, but sometimes the price can remain within a specific range for an extended period. This type of sideways movement is not necessarily stable because cryptocurrency markets have high volatility that stems from a range of uncertainties and the early adoption cycle. For example, investors who concluded that the Bitcoin (BTC) bull run was over after the first week of 2021 probably regret that decision. Starting on Jan. 8, Bitcoin price traded in a descending channel within a $10,000 range. The movement lasted for 26 days until it finally broke …

On June 25, Ether (ETH) will face its largest options expiry in 2021 as $1.5 billion worth of open interest will be settled. This figure is 30% larger than the March 26 expiry, which took place as Ether’s price plunged 17% in five days and bottomed near $1,550. However, Ether rallied 56% after March’s options expiry, reaching $2,500 within three weeks. These moves were completely uncorrelated to Bitcoin’s (BTC). Therefore, it is essential to understand if a similar market structure could be underway for June 25 futures and options expiry. Recent history shows a mix of bullish and bearish catalysts …

On Friday, June 11, a total of $565 million in Bitcoin (BTC) options are set to expire. This is significant because the last couple of weeks have been a massive deception for bulls. After all, the price was struggling to sustain the $33,000 support. However, an unexpected bullish turn of events led to an 18.5% hike from the $31,000 low on June 8 to $38,491 today. This strong move saved the bulls because any level below $34,000 would have wiped 98% of the current call (buy) options. Who saved the day? First, MicroStrategy, a publicly-traded company that holds over $3.2 …

Dan M. Berkovitz, commissioner of the Commodity Futures Trading Commission (CFTC), believes DeFi derivatives platforms may contravene the Commodity Exchange Act (CEA). Speaking as part of a Tuesday keynote address dubbed “Climate Change and Decentralized Finance: New Challenges for the CFTC,” Berkovitz noted that: “Not only do I think that unlicensed DeFi markets for derivative instruments are a bad idea but I also do not see how they are legal under the CEA.” Berkovitz noted that the “CEA requires futures contracts to be traded on a designated contract market (DCM) licensed and regulated by the CFTC.” However, he asserted that …

Margin trading allows investors to borrow stablecoins or cryptocurrency to leverage their position and improve the expected return. For example, borrowing Tether (USDT) will allow one to buy Bitcoin (BTC), thus increasing their Bitcoin long position. Investors can also borrow BTC to margin trade a short position, thus betting on price downside. This is why some analysts monitor the total lending amounts of Bitcoin and Tether to gain insight into whether investors are leaning bullish or bearish. Are analysts flipping bearish based only on Bitfinex’s margin data? This week, some prominent analysts cited a surge in Bitcoin short positions on …

After reviewing Ether (ETH) options for June 25, one might think that traders either became overly optimistic or ultra-bearish. Currently, there are large bets for prices below $1,000 while others aim for $3,800 and higher. A recent report from Coinshares shows that multiple crypto funds have begun seeing net inflows after weeks of record outflows. The report notes that Ether vehicles saw a total of $47 million in inflows, bringing its market dominance up to 27%. DeFi growth supports higher Ether prices Another positive factor is that DeFi protocols maintain a $48 billion total value locked (TVL) even though the …

Ether (ETH) has outperformed Bitcoin (BTC) by 32% since May, and even though there has been a steady flow of bullish reports from JPMorgan Chase and Goldman Sachs, derivatives metrics show elements of bearishness in both assets. Bitcoin is trading 41% below its $64,900 all-time high, and that move has driven the "Crypto Fear and Greed Index" to its lowest level since March 2020. While retail traders fear the dip, global investment firm Guggenheim Investments has filed with the United States Securities and Exchange Commission for a new fund that may seek exposure to Bitcoin. Billionaire investor Stanley Druckenmiller reiterated …

On June 4, a total of 15,530 Bitcoin (BTC) options are set to expire, which represents $575 million in open interest. At the moment, bulls are still heavily impacted by May's 37% BTC price correction, and this has led most call (buy) options to be underwater. Despite the crash, Bitcoin's active supply reached a five-month low, as 45% of the coins have not been moved over the past two years. This indicator shows that investors who purchased up until the 2019 bull run are unwilling to sell at the current prices. Miners are also avoiding sales below $40,000, as their …

Bitcoin (BTC) is fast approaching its worst monthly performance in a decade, but some investors are using this as an opportunity to buy ultra-bullish long-term derivatives. There are currently over $900 million in call (buy) options aiming at $100,000 and higher, but what exactly are those investors seeking? Options instruments can be used for multiple strategies, which include hedging (protection) and also aiding those betting on specific outcomes. For example, a trader could be expecting a period of lower volatility in the short term but, at the same time, some significant price oscillation toward the end of 2021. Most novice …

Singapore-based Bybit, the world’s fifth-largest cryptocurrency derivatives exchange by trading volume, has allegedly been running unregistered crypto services in Japan, according to an official warning. The Japan Financial Services Agency issued a formal warning letter to Bybit stating that the firm is not registered to operate crypto services in the country. The warning comes in response to Bybit’s marketing campaign that reportedly targeted Japanese investors, according to Norbert Gehrke, founder and representative director of tech hub Tokyo FinTech. “Such public reprimand for running an unregistered business has not occurred for a while, so one is to assume that the FSA …

Traders are using various strategies to determine whether Bitcoin’s price has bottomed, but on-chain activity and derivatives data hint that the situation remains precarious. Has Bitcoin’s price bottomed yet? According to Twitter user Noshitcoins, derivatives and on-chain data signal that further downside could be in store. Traders have been trying to time the much-anticipated trend reversal ever since Bitcoin (BTC) initiated its 48% correction to $30,000 on May 12. The move culminated with $12 billion worth of futures long positions being liquidated, and to date, trader confidence remains somewhat dampened. The community started looking everywhere for trend reversal signs, including …