Why is Unlimited Quantitative Easing (QE) Bullish for Bitcoin (BTC) Price?

  • At the beginning of this week, the Federal Reserve announced unlimited quantitative easing (QE) to combat the economic effects of COVID-19, a pandemic that has investors fearing the possibility of a recession as the unemployment claims rose to a record level.
  • The day the Fed said it would be printing unlimited amounts of cash, the price of bitcoin jumped over 10% just like the S&P 500 did, rallying nearly 8%.
  • Yesterday, the stimulus package of $2 trillion was agreed upon but it was unable to move the markets.

The Fed has long been pumping liquidity in the market and after the market carnage started a few weeks back driven by the novel coronavirus and oil price war, the central bank slashed the interest rates to zero, short-term Treasury bills even dropped into negative territory, and they were forced to work on their strategies.

The Fed decided to launch the bazooka of trillions of dollars in monetary and fiscal stimulus but as crypto commentators have reportedly been calling out, it has the underlying risk of inflation.

“This is how free money looks like. But there is no such a thing as a free lunch, is there. Society pays for this. Via inflation. The price to pay is inflation in the long run. Inflation expectations are popping and the long end of the treasuries curve is already pricing it in,” said,” said economist and trader Alex Kruger.

The last time such emergency measures and QE program were launched was during the financial crisis of 2008. Fed Chairman Jerome Powell said earlier this week that the central bank will continue its “aggressively and forthrightly” efforts. On his promise of unlimited bond purchases, he said the Fed won’t “run out of ammunition.”

It’s Bitcoin’s Time

Bitcoin price might be acting like a risky asset and moving along with the stock market but bitcoin believers, investors, and commentators are confident in the world’s leading digital asset and that it’s time for it to shine.

When it comes to price, in the time of crisis, everything gets sold off as investors look for cash. Even gold saw its biggest weekly decline since 2013 during this sell-off the same way it did in 2008.

Now, if we look at bitcoins’ history, the crypto asset was created right at the time of the financial crisis and as popular analyst PlanB said, BTC is made for this situation.

According to Kruger, QE infinity is bullish for bitcoin because of three reasons. In the short term, bitcoin is trading like a risk-on asset and it will uptrend just like other assets.

In the long-term, he said, Bitcoin is “a hedge against tail-risk of fiat systems collapsing, and odds of such an event increased marginally.”

And lower yields may also help on the margin, said Kruger. As we saw this time, following the QE announcement, the treasury yield curve collapsed and gold spiked just like in 2008. At that time, when QE was announced, it triggered the gold bull market. This time, the deflationary asset with limited supply is also expected to emerge as the winner once the dust settles.

Latest Bitcoin Price News and Crypto Market Updates

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Author: AnTy

Crisis Investing 2020 Docu-Series on Financial Markets Set to Release

Crisis Investing 2020 is a series of episodes for investors. The episodes teach you how to “make life-changing money” while markets are crashing.

Crisis Investing 2020 claims to teach you the secrets that rich people use to take advantage while ordinary people scramble. The 2008 crisis gave rise to plenty of millionaires and billionaires. Will we say the same thing about the 2020 financial crisis?

You can sign up for Crisis Investing 2020 for free today at CrisisInvesting2020.com. Just enter your name and email address.

Crisis Investing 2020 is free. After entering your email, you will receive a link to each episode. The episodes stay online for 24 hours.

The first Crisis Investing 2020 “Docu-Cast” will appear online on April 7, 2020.

Let’s take a closer look at everything to know about Crisis Investing 2020.

What is Crisis Investing 2020?

Crisis Investing 2020 is a nine-part online docu-cast that teaches viewers how to capitalize on an economic crisis.

By picking the right investments today, investors can safeguard their portfolio and take advantage while others flee the market.

The team behind Crisis Investing 2020 claims to have gathered “the world’s elite money minds all in one place” to create the documentary series.

Crisis Investing 2020 is being published online for free, with the first episode scheduled to air on April 7, 2020.

What will You Learn from Crisis Investing 2020?

There’s limited information online about what you’ll learn in Crisis Investing 2020. However, here are some of the things we know will be included in Crisis Investing 2020:

  • The playbook that the rich use during economic crises to continue getting richer
  • The investment strategies you can use to capitalize on the 2020 economic crisis (or any other economic crisis)
  • The moves you should make while the masses “panic and freeze”
  • Information on investments in real estate for profit and cash flow
  • What to do with your failing financial assets, including the time to buy, sell, and hold
  • Current tax liabilities investment opportunities and the advantages and learn how to recoup or defer thousands of dollars from this
  • How to gain stable businesses at extremely low prices to generate cash flow for life
  • What’s really going on in our current economy and state of the crisis from a former White House economist
  • The best trades to make when a crashing market is in free fall
  • Option strategies with big returns
  • The businesses that will survive and make strides during this crisis to become the next Amazon or Netflix

Overall, Crisis Investing 2020 makes big promises about its effectiveness. The sales page for Crisis Investing 2020 asks you to imagine what it would be like to have $10 million in the bank, for example. Targets like this are attainable by following the lessons in Crisis Investing 2020 – at least, according to the team behind Crisis Investing 2020.

Who’s in Crisis Investing 2020?

Crisis Investing 2020 claims to feature “the world’s elite money minds all in one place”. However, the sales page for the docu-series does not mention any specific names.

We have no idea who will appear in Crisis Investing 2020 – or why those people are qualified to give you investment advice.

Why is Crisis Investing 2020 Free?

The creators of Crisis Investing 2020 are publishing the documentary series online for free because, in their words, people should have this critical information during a time of crisis:

“Why free? You deserve this critical information and we’re committed to making sure every single person that needs it has access during this crisis.”

Of course, the real answer is that the team is building an email list it will use to sell you products in the future (we assume).

However, it’s not totally clear what types of products will be advertised to this email list. The last documentary released by this company, Supplements Revealed, sold packages of supplements to viewers (like the $250 Gold Package, which included supplements and online guides).

Despite what Crisis Investing 2020 tells you, the company is not releasing this documentary out of the goodness of their heart: the company wants to sell you products and make money. The documentary is more of an advertisement than an objective documentary. However, one can not refute the high profile, next level caliber of people they have in the all-star line up of people being interviewed who share their insights and analysis on the current financial market landscape.

Who’s Behind Crisis Investing 2020?

Crisis Investing 2020 was created by a Park City, Utah-based company called Revealed Films, Inc.

There’s limited information online about Revealed Films. However, we know the filmmaking company is led by Jeff Hays, who also publishes movies under the name Jeff Hays Films.

Previous documentaries from Jeff Hays and Revealed Films have included FahrenHype 9/11, GMOs Revealed, Christ Revealed, Money Revealed, and The Healing Miracle.

Revealed Films has a subpar rating on the Better Business Bureau website, with multiple customers in the past three months (December 2019 to March 2020) complaining about ordering problems and refund issues. However, the company and names above all have reputable backgrounds and have been putting together similar style documentaries and movie films that tell a story by collectively getting the biggest and brightest to share perspectives and forward-thinking feedback.

Final Word

Crisis Investing 2020 is a free, nine-part documentary series that teaches people how to make smart investments during a time of crisis – like the current COVID-19 coronavirus pandemic that has sent markets into turmoil worldwide.

Crisis Investing 2020 promises to teach you the strategies that rich people use to get richer during an economic crisis.

You can sign up to view the documentary series online through CrisisInvesting2020.com.

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Author: Andrew Tuts

WHO Collaborates With Oracle, IBM and Government Agencies to Develop COVID-19 Blockchain Data Monitoring System

World Health Organization has teamed up with the likes of IBM, Oracle, Microsoft and many other government agencies to create a blockchain-based open data hub called MiPasa. The platform will verify various data and information related to the COVID-19 outbreak to ensure its validity and create plans to contain the pandemic based on the same.

The coronavirus pandemic has engulfed the whole world leading to chaos, fear, the uncertainty of the future and a stream of misinformation. The MiPasa platform created by Hacera has been built on top of Hyperledger Fabric with a range of data monitoring and analytic tools to test the available data on the outbreak and other information which would eventually lead to correct detection of virus infection hotspot.

Jonathan Levi, CEO of Hacera, believe MiPasa would be “COVID-19 information highway,” and precise analysis of the information and data available presently are more than enough to make the right decisions.

While creating an enterprise-grade blockchain-based system could take months, but tough times call for tougher measures and as a result, the collaboration of major players like Microsoft, Johns Hopkins University, China’s National Health Commission and many other agencies made it possible to create the MiPasa platform in no time.

IBM at the Forefront to Avail Data Analytics tools on MiPasa

IBM is at the forefront of the initiative and noted that after brainstorming about the idea for a data verifying and analyzing consortium, they all agreed that it is the need of the hour. Gari Singh, IBM Blockchain CTO noted,

“It’s not that we were trying to force blockchain into this solution, but we thought we need to replicate data, we need to have trusted sources, we need to make sure it can’t be tampered with.”

IBM has also pledged to bring ‘Call for Code’ initiative which would ensure in the rapid creation of various analytical tools for monitoring all kinds of data. Sing also said that coronavirus testing data is something they were looking to add to the platform in the near future.

The platform is also focused on the ease of use where someone can enter a set of information from a mobile device which then will be utilized by the platform to build an application for the same.

Data analytics can be a big game-changer in the present scenario and if the quality of the data input is consistent and correct, it would create a powerful insight into the spread of the virus, which then can be used to stem and contain the problem.

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Author: James W

Binance Delisting FTX Leveraged Tokens on “Lack of Understanding,” Community Calls “BS”

  • Binance to delete all existing” FTX leveraged tokens from March 31st
  • Community questions Binance’s reasoning behind the decision
  • FTX exchange, in which Binance invested last year, meanwhile listing LT USDT pairs to compensate users
  • In a sudden move, the world’s leading cryptocurrency exchange Binance has delisted all the FTX leveraged tokens from its platform.

On Saturday, the exchange announced that they have decided to delist “all existing” FTX leveraged tokens along with the corresponding trading pairs. These delisted pairs will stop trading from March 31st, 10:00 AM (UTC) while deposits and withdrawals will be closed the same day at 08:00 AM.

Until then, users can trade out of their existing leveraged token positions or withdraw these tokens. The user can also choose to continue holding until the delisting date after which the user’s Binance account will be credited with the equivalent value held in each leveraged token in BUSD within 14 days.

The reason for the same given by Binance is the “lack of understanding of how leveraged tokens work by many of our users.”

However, the crypto community is not satisfied with Binance’s reasoning as one user commented, “This is BS. I just had to sell at a loss because of this crap. Come on. The community can read. Educate them. Don’t delist them.”

“They are not designed for long term holding. They devalue over time when markets (underlying assets) fluctuate back and forth. The main reason for delisting is that too many users don’t understand them,” maintained Binance founder and CEO Changpeng Zhao (CZ).

While popular trader Hsaka called, “someone got rekt bigly,” another popular trader quipped, “Right, because I imagine the majority of their users totally understand how other leveraged products work!”

FTX Compensating

Interestingly, back in December, Binance invested an undisclosed amount in the derivatives platform FTX. As part of its strategic partnership, Binance also purchased long positions in the native coin of the platform FTX token, FTT.

At the time of writing, FTX token has been trading at $2.30 down 6.31% in the past 24 hours and up 4.89% YTD.

FTX founder and CEO Sam Bankman-Fried also took to Twitter to share the news that Binance is delisting leveraged tokens as they don’t “want to manage user education/support.”

Banman-Fried also said FTX is listing LT USDT pairs to compensate and users can choose to send their LTs to FTX wallet if they don’t want them turned into BUSD on Binance.

Other Delistings

Besides delisting of FTX leveraged tokens, Binance delisted various other assets viz. BULL, BEAR, ETHBULL, ETHBEAR, EOSBULL, EOSBEAR, BNBBULL, BNBBEAR, XRPBULL, and XRPBEAR.

And tons of other trading pairs will also cease to trade on the platform from March 30 that include BULL/USDT, BULL/BUSD, BEAR/USDT, BEAR/BUSD, ETHBULL/USDT, ETHBULL/BUSD, ETHBEAR/USDT, ETHBEAR/BUSD, EOSBULL/USDT, EOSBULL//BUSD, EOSBEAR/USDT, EOSBEAR/BUSD, BNBBULL/USDT, BNBBULL/BUSD, BNBBEAR/USDT, BNBBEAR/BUSD, XRPBULL/USDT, XRPBULL/BUSD, XRPBEAR/USDT, and XRPBEAR/BUSD.

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Author: AnTy

Bitcoin Miner Fees Jumps a Whopping 196% YTD while Indicators Turning Bullish

  • Bitcoin price and volume is down while volatility jumps above 9%
  • Long-term velocity turned bullish while MVRV Z-Score indicates market bottom

It’s just another day in the crypto market with Bitcoin down 6.36% trading at $6,225. The market doesn’t seem to decide on where it wants to head right now, as the market records double-digit percent changes in both the directions.

The crypto market started climbing this week after the stock markets found a temporary bottom. Given that cryptocurrencies are acting like risky assets in line with stock markets, it’s no surprise that the momentum has been positive throughout this week.

But the 7-day average real trading volume has dropped down after the volatile period for the past two weeks but still higher than the average recorded earlier in 2020. And increasing prices on decreasing volume is usually a bearish signal.

The 30-day volatility for the BTC price that has been extreme these days meanwhile has jumped above 9%. As Arcane Research notes, “with the global turmoil and volatile stock markets, it doesn’t look like the bitcoin price movements will settle down either.”

The rise in BTC’s price has the world’s top cryptocurrency leading the way with an increase in its dominance. While Bitcoin is closing up on Small Caps ahead of both Large and Mid Cap crypto indexes, Mid Caps continue to be the worst performer, down 34% this month.

However, despite the price boost, bitcoin is up 70% from its $3,850 bottom, the market sentiments are still reflecting “extreme fear” in the market with the Fear & Greed Index having a reading of 14. The last time the market stayed in “Extreme Fear” this long was in December 2018.

The Bitcoin Network

As we reported, mining difficulty for bitcoin declined by almost 16%, which has been the second biggest drop in its history. The largest drop was on October 31, 2011, of 18.03%. The network difficulty adjusts every 2016 block or 2 weeks in order to ensure that the network continues to mine new blocks every 10 minutes.

This decline came on the back of a drop in the hash rate following the crash in price two weeks ago. This decline indicates that fewer miners are competing to solve the math problem to mine the block and win freshly minted BTC.

Mining fees meanwhile jumped 47.8% since last month and a whopping 196% YTD, as per Glassnode.

Amidst this, the bullish metric is a long-term velocity that measures the speed at which bitcoin is moved through the network. A velocity of 600% means, active coins move six times per year and it has yet again turned bullish last week after being below 600% since August 2019.

Yet another bullish indicator is MVRV Z-Score which is used to assess when Bitcoin is under or overvalued relative to its fair value. It dropped under and then promptly bounced back over 0 in a space of two weeks and “historically, falling into the green zone has indicated market bottoms.”

Latest Bitcoin Price News and Crypto Market Updates

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Author: AnTy

IOHK Reboots Byron Codebase, A Big Step Towards Cardano’s Shelley Blockchain Upgrade

IOHK Team has released a statement that the Byron upgrade is now complete. As per a press release, the upgrade will allow a seamless changeover to the Shelley mainnet. The upgrade will now make Cardano (ADA) be fully decentralized.

The new Byron upgrade or reboot that is set to be rolled on Mar. 31, 2020. This is the most significant software upgrade on Cardano since it was launched back in 2017.

IOHK Team explained that the new release means the entire design of all elements within the Cardano (ADA) blockchain. The upgrade will enhance various elements such as the Cardano’s node performance, the wallet backend, the Cardano wallet as well as Daedalus wallet itself.

The team stated that one of the most significant aspects that come with the Byron reboot is the reorganization of all the logics of the interaction among the blockchain components. The fresh release will make the codebase modular, which will separate the ledger, components of the network node as well as consensus. As a result, this will allow “any one of them to be changed, tweaked, and upgraded without affecting the others.”

The new release means that Cardano (ADA) network is increasingly moving just inches to the launching of the Shelley mainnet. The upgraded Byron network, the system will now have the capacity to support every Shelley feature in addition to various future developments.

The fresh node update is set to be launched to more cores as well as relay nodes on top of the Cardano mainnet for the coming few weeks. This will be followed by more reboot improvements as well as a Daedalus beta in the future.

[Also Read: IOHK Releases Ouroboros Hydra Protocol to Improve Micropayments on Cardano Network]

IOHK CEO, Charles Hoskinson, explained that the release of an upgraded Byron will enhance the overall performance of the Cardano network. He also explained that the upgrade will also improve the transaction throughput capacity. The network is also going to handle an increased demand as well as more transactions every second.

Hoskinson also expounded that the new codebase will allow the Cardano system to be operated using less costly computational equipment that has a weak internet connection. Hoskinson also said,

“I am extremely proud of the IOHK developer team’s endeavours to rewrite the Byron era node from the ground up. Their work represents a significant investment in the network-critical infrastructure required to support the Shelley era of Cardano as we move forward on our mission to build a global-scale financial and social operating system.”

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Author: Joseph Kibe

Bitwise Plans To Target Retail Investors With Its Crypto Index Fund

Bitwise has revealed that plans are underway to allow the retail market to participate in its large-cap index service.

According to CoinDesk, Bitwise is working closely with the relevant regulatory bodies to list its Bitwise 10 Index Fund shares on OTCQX, which provides an alternative trading system and is licensed by the SEC. According to Hunter Horsley, Bitwise’s CEO, if the plans are okayed, retail investors will have a chance to trade the fund on various renowned platforms such as TD Ameritrade as well as Charles Schwab.

The firm has various steps before trading can kick-off. The firm will start with an announcement to all the shareholders and Horsley revealed that this was done on Friday. The firm will also need to publish all the public disclosures to comply with the ATS reporting rules. The firm will also need to prepare a market maker and file Form 211 as per FINRA requirements. Trading will only kick-off after the approval of Form 211 by FINRA. Horsley explained:

“We expect approval for trading in the second half of 2020. It’ll take a number of months for trading to commence.”

Horsley compared the process to that of Grayscale Investments’ Bitcoin Trust offering that is currently trading on OTCQX. At the moment Grayscale has listed various shares on OTCQX such as Digital Large Cap Fund, Ethereum Classic Trust as well as Ethereum Trust.

The Bitwise 10 Index Fund is highly diversified just as the Grayscale large-cap fund. As Horsley explained, it holds assets that are representative of about 85% of the whole crypto market capitalization.

Horsley stated that the fund comprises Bitcoin, XRP, Ethereum, Ethereum Classic, Bitcoin Cash, Litecoin, Stellar Lumens, EOS, Tezos, and ADA.

There has been a growing interest in such types of products, Horsley stated. He added that his firm has been holding about 2,000 calls every month with advisors. A recent survey revealed that about 72 percent of advisors stated that their clients have been inquiring about crypto products.

Horsley also stated that plans are underway to launch a Bitcoin exchange-traded fund in the near future.

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Author: Joseph Kibe

Binance’s Educational Platform Opens Up Government Approved Office in Shanghai

Binance, one of the most popular crypto exchanges in the crypto-verse which also has many subsidiaries including Binance Academy (a blockchain and crypto-centred educational portal) is all set to open its first office in Shanghai, China. Changpeng Zhao (CZ), the CEO of the exchange confirmed the same on Twitter.

This can be seen as a major milestone for Binance given there have been many rumors of them unofficially running an office and even some reports of them being investigated by the authorities (which the exchange has denied time and again). CZ has been trying to strike balance with the authorities for quite some time now, but given China’s stance on crypto exchanges forced Binance to shift their operating base outside the country.

The Begining of a New Chapter for Binance

According to the local news report, the major milestone would see Binance Chain’s core team working with Lingang Xinyefang and Lingang Innovation Management College in order to set up a research institute in Shanghai province. The focus of the research institute would be to develop various use cases for blockchain technology, for which China seems to be really bullish.

Today marked the official signing ceremony where the local authority seal of approval took place and the possession of the office was handed over to Binance. While CZ has often propagated that in modern times physical headquarters and office does not make much of a difference given the technology has made it possible to function without the need of one. However, given China’s notorious and passive stance towards crypto service providers despite being bullish on blockchain make this event indeed historical for Binance.

Does Binance’s Office Approval Suggest China’s Softening Stance on Crypto?

The answer is a hard NO. China has been tip-toeing about their approval for crypto for quite some time, but it seems it would be quite difficult to see China’s softening regulatory stance on cryptocurrency. This has been evident on many occasions in the past, be it them calling Bitcoin the best use case of blockchain, in the wake of PM’s call for accelerated blockchain adoption, but the very next day they took a U-turn and said that Bitcoin still has many flaws which would be overcome by their national CBDC.

Very recently they have blasted cryptocurrencies for being volatile and how it could never become an instrument of finance. Even the recent Binance approval for research is strictly for blockchain purposes only. While there is still no confirmation on the launch date of national digital currency, which many speculated to be in line for launch since October 2019.

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Author: James W

XRP Trying to Retrace Months of Underperformance But Remains in a “Corrective” Structure

  • XRP is up 12.5% but could still jump another 23%, A clean break above $0.21 would be “very bullish”
  • Ripple granted an exemption from Payment Services Act by MAS until July 28, 2020

XRP is the winner of today’s market gainers as the digital asset jumped 12.5%. The fourth-largest cryptocurrency by market cap is currently trading at $0.176 on Bitstamp, down from today’s high of $0.180.

Despite these gains, the crypto asset is still down over 50% from the February high at above $0.34. During the crypto carnage in the past few weeks, XRP went down as low as $0.11 which was last seen in May 2017.

Su Zhu, CEO at Three Arrows Capital says, the cryptocurrency is looking to retrace its underperformance that has been going on for months in a few days, which “is what peak crypto trading performance looks like.”

However, as Gabor Gurbacs, a digital asset strategist at VanEck notes, the volume isn’t really working in the cryptocurrency’s favor for a long time now. XRP is recording losses of 11.21% in 2020 so far and is down 96% from its all-time high of $3.92 from January 2018.

Trader Credible Crypto who is also an XRP enthusiast and investor is expecting a surge of more than 23% that would take it to $0.21 level. But despite this, the channel remains a corrective one. However, if XRP clean breaks above this level, that move would be “very bullish.” The trader said,

“My thoughts on XRP. We can move up to .20-.21 and still be in a corrective channel. A break out from this channel on increasing volume could indicate that this is something more than just a typical corrective structure. Exciting times ahead.”

In the BTC terms, analyst The Cryptomist is looking for another over 8% move up in the price of XRP as she said,

“Entered here on OKEx with a bullish flag forming. Expect a breakout with no later than few hours from now. Looking at a target of 2800 sats. Whilst Btc has been going sideways, alts have been going vertical.”

The Good & the Bad

While the price of XRP continues to struggle, Ripple along with Binance and Coinbase has been granted an exemption from the Payment Services Act (PSA) by Singapore that was adopted in January 2020 by the country.

The statement was released on March 24, where the Monetary Authority of Singapore (MAS) said the local subsidiary of some of the major crypto companies are officially authorized to offer digital payment token service in the country without a PSA license until July 28, 2020.

Amidst this exemption for a limited time period came the news of a new movement in a class action lawsuit that was filed in May 2018. The amended complaint accused company’s CEO Brad Garlinghouse of liquidating 67 million XRP while promoting the token to potential investors.

It further claims that all the XRP tokens are “created out thin air” and accuses Ripple and the CEO of falsely claiming XRP’s “utilitarian purpose” as a “bridge currency.”

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Author: AnTy

23k BTC on CME Futures and 50k BTC in Options Expiring Today

Bitcoin is currently down 0.05% in the past 24 hours trading around $6,640 after hitting $6,872 last night, yet again rejected at $7,000 level. Interestingly, more than 340,000 addresses are holding about 236k BTC at about $7k level.

According to trader Nebraskan Gooner, the crypto asset is working in a tight range. A daily close above $6,750 he said “would surely” take us above $7,000 while the close below $6,400 means, falling to $5900 and even $5200.

Bitcoin has also printed a death cross, which indicates a potential for major sell-off. This technical chart pattern has been a reliable indicator of some of the most severe bear markets in the traditional markets which is now seen in bitcoin.

But bitcoin volatility could see a further hike as futures contracts on CME and options expire today.

Activity on CME has been declining ever since February when the price of Bitcoin was trading around $10,500. Crypto data provider TradeBlock, noted,

“March bitcoin futures trading volume at the CME declined despite elevated volatility in spot markets for the month. While the CME’s bitcoin futures product saw record volumes in January and February, March activity has fallen considerably.”

Source: @TradeBlock

As for today’s futures contract expiration, Bitcoin futures on regulated exchange CME has about 23,000 BTC worth over $150 million in open interest for March 27th contracts.

Besides bitcoin futures, options are also expiring today. About 50,000 BTC options worth about $330 million are outstanding on crypto exchanges, out of which $50 million are in open interest on March 27th expiry on Deribit.

“For reference, the Deribit Exchange open interest on options last year was half the value of open interest that is present on exchange now. ($300m -> $600m). The same case for BitMEX March 27th futures,” noted Trajan.

Skew-Total-BTC-Options-Open-Interest
Source: Skew.com

According to Su Zhu, CEO of Three Arrows Capital this quarter is “very important” to watch. It is expected that the expiry of Bitcoin futures and options would result in heightened volatility.

Zhu further noted, “Last yr market bounced quite aggressively from backwardation to contango after the expiry.”

Backwardation is when the spot price of an underlying asset is higher than the futures price while Contango is when the price of a commodity is higher in the futures market than the current price of the commodity. Now it’s to be seen if we will see the same scenario happening this time as well.

Backwardation is happening in both gold and bitcoin which Zhu said could be because “mkt has re-learned fear and is showing preference for owning actual assets vs owning derivatives of those assets.”

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Author: AnTy