Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum

Just before the end of the year, the crypto market continues to take a beating. After the initial green start of the last week of 2021, prices have only been going down.

This rout further extended to late Wednesday and early Thursday when Bitcoin price dipped further just under $45,900 and Ether to about $3,585. As of writing, BTC/USD has been trading above $47k while Ether is also over $3,700.

While the leading cryptocurrency is down 31.6% from its $69,000 all-time high early last month, Ether is only down about 24%. This month, however, Bitcoin is down 17.5% compared to ether’s almost 20%, according to Skew.

But while Bitcoin managed to record losses less than Ether, the latter’s 2021 gains at 407% are still greater than Bitcoin’s only 60%.

“It’s not really that clear to the world at large, to the mainstream, that what’s really happening with Bitcoin, with Ethereum, with this whole bucket of technologies…is really a revolution in software development,” said Coinlist CEO Graham Jenkin in an interview. “Blockchain technology represents a totally new way to build, distribute and run software.”

The largest cryptocurrency has shown a positive correlation with the S&P 500 Index this year. But this week, S&P 500 rose to new highs while Bitcoin has only been recording losses.

With the subdued price action, the cryptocurrency’s volatility has also decreased. Even during the winter festive season and weekends, which have seen thin volume, the cryptocurrency has failed to have any wild swings.

“A lot of traders have made life-changing money in 2021 and have been waiting to take profits until after the turn of the year to delay tax payments until 2023,” said Sergio Silva, sales director at Fireblocks. “That’s another source of selling pressure that could cascade into additional weakness in January.”

But despite the ongoing weakness in the crypto market, exchange-traded fund investors (ETF) are still putting money into these products.

The ProShares Bitcoin Strategy ETF (BITO), the first Bitcoin futures ETF that started trading in October, has attracted more than $40 million in December for the third straight monthly inflows.

Investors have also poured in $6.5 million into another futures ETF, the Valkyrie Bitcoin Strategy ETF (BTF), since the end of last month, its third consecutive month of inflows as well.

2021 belongs to altcoins and not Bitcoin or Ether. The biggest gainers this year have been the NFT pay-to-earn (P2E) game Axie Infinity (AXS) whose gains have been more than 15,900%, and the NFT-based virtual world The Sandbox (SAND), whose returns have been 15,550%. AXS 1.17% Axie Infinity / USD AXSUSD $ 94.97
$1.111.17%
Volume 180.63 m Change $1.11 Open $94.97 Circulating 60.91 m Market Cap 5.78 b
10 h Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 1 d South Korean Exchange Suspends Withdrawals to External Wallets, Govt. Reaches Out to Apple and Google to Block P2E Apps 2 d Axie Infinity Daily Revenue Plunges Over 94% from Peak as Daily Active Addresses Drops by 72%
SAND 1.32% The Sandbox / USD SANDUSD $ 5.91
$0.081.32%
Volume 1.16 b Change $0.08 Open $5.91 Circulating 919.5 m Market Cap 5.43 b
9 h The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022 10 h Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 6 d Is This The Beginning of the Santa Rally? Markets Jump in Asia Session

Ethereum killers have been another good play of 2021, with Polygon (13,860%), Terra (12,960%), Fantom (12,260%), and Solana (9,320%) leading this rally.

MATIC 3.24% Polygon / USD MATICUSD $ 2.56
$0.083.24%
Volume 1.93 b Change $0.08 Open $2.56 Circulating 7.16 b Market Cap 18.32 b
7 h StarkWare Proposes to Deploy Aave on its ZK-Rollup L2 StarkNet 9 h The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022 10 h Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum
LUNA 1.41% Luna Coin / USD LUNAUSD $ 0.01
$0.001.41%
Volume 0 Change $0.00 Open $0.01 Circulating 1.71 m Market Cap 13.68 K
10 h Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 2 d UST Grows 55x to Become the 4th Largest Stablecoin, Terra DeFi Ecosystem Amasses $18B in Assets 6 d Is This The Beginning of the Santa Rally? Markets Jump in Asia Session
FTM -1.91% Fantom / USD FTMUSD $ 2.10
-$0.04-1.91%
Volume 607.67 m Change -$0.04 Open $2.10 Circulating 2.55 b Market Cap 5.34 b
10 h Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 3 d Bitcoin Is Back Above $51k and Ether $4,100 as The Cryptocurrency Market Goes Green 3 w ETHBTC Hits New 2021 High, Dogecoin and Ethereum Price Leading Google Trends in 2021
SOL 0.92% Solana / USD SOLUSD $ 172.53
$1.590.92%
Volume 1.51 b Change $1.59 Open $172.53 Circulating 309.48 m Market Cap 53.39 b
10 h Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 1 w Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 w Crypto Outliers: Terra (LUNA) Amasses $16.9 Bln & Surpass BSC, Avalanche (AVAX) Aims for 1 Million Daily Transactions

“While Bitcoin showed strength in 2021, we’ve seen a constant stream of capital trickling down into altcoins,” Arcane Research wrote in a note. The firm’s analysts predict the strongest momentum in tokens related to GameFi and the metaverse, along with “ETH-killers” targeting Ethereum.

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Author: AnTy

UNI and MATIC Pump after Uniswap V3 Deployed on the Ethereum Scaling Solution Polygon

UNI and MATIC Pump after Uniswap V3 Deployed on the Ethereum Scaling Solution Polygon

In his proposal, Polygon co-founder Mihailo Bjelic said they would commit up to $20 million to incentivize Uniswap adoption.

Leading decentralized exchange Uniswap V3 has been deployed on the Ethereum scaling system Polygon mainnet.

This comes after UNI holders voted to pass a governance proposal for Uniswap v3’s deployment to Polygon. More than 72 million UNI token holders (98.8%) supported the move.

With this deployment, the idea is to bring Polygon’s low fees to Uniswap as increased usage of Ethereum has made the second-largest network very expensive resulting in the pricing out of small users. But now, Uniswap users can swap tokens using the Polygon blockchain.

Polygon co-founder Mihailo Bjelic submitted the proposal on the Uniswap governance forum last month. In his proposal, Bjelic also said that the project would be willing to commit up to $20 million to incentivize Uniswap adoption; $15 mn will be used for a long-term liquidity mining campaign, and $5 mln will go towards the overall adoption of Uniswap on Polygon.

In response, Polygon’s $2.3 billion market cap cryptocurrency MATIC rallied to hit a new all-time high at $2.70 on Wednesday. As of writing, MATIC is trading at $2.53, down 6.2% from its ATH but up 14042% YTD.

UNI also enjoyed a spike in price to now trade at $17, but much like the broad decentralized finance (DeFi) sector, the governance token is down over 62% from its all-time high earlier this year.

This is despite the fact that Uniswap continues to dominate the DEX space, accounting for about 76% of the market share, as per Dune Analytics.

As for the DeFi space, Uniswap has nearly $9 bln of total value locked in it. This TVL reached $10.5 bln at the beginning of the year. Polygon’s DeFi ecosystem meanwhile has $5.27 bln in TVL, about halved from $10.5 bln high in mid-June.

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Author: AnTy

OpenSea Is “Not Planning” an IPO, says CFO After Community Push Back

OpenSea Is “Not Planning” an IPO, says CFO After Community Push Back

“You’d be foolish not to think about it going public,” when OpenSea is growing at such a fast pace, said Brian Roberts earlier in the week.

NFT marketplace OpenSea is pushing back against the reports of the company planning its initial public offering (IPO), which would mean no token for its early adopters, much like the leading US cryptocurrency exchange Coinbase, which went public in April this year, nine years after being co-founded by CEO Brian Armstrong. Brian Roberts, who joined OpenSea as its CFO this week said,

“Let me set the record straight: there is a big gap between thinking about what an IPO might eventually look like & actively planning one. We are not planning an IPO, and if we ever did, we would look to involve the community.”

The former Lyft executive who previously also worked at Microsoft and Walmart said in an interview with Bloomberg this week that he’s already planning an OpenSea IPO. Roberts is known for guiding his former company to a successful IPO.

“When you have a company growing as fast as this one, you’d be foolish not to think about it going public,” he said. It “would be well-received in the public market given its growth.”

Roberts’ u-turn came after the crypto community voiced against the company’s plans for an IPO and taking the traditional finance route instead of rewarding its users much like other crypto projects such as DEX Uniswap.

“Pressure from users will reach a tipping point for consumer-facing companies. the moment the IPO rumors start, users will push these platforms to do retroactive token airdrops instead,” commented Raj Gokal, co-founder of Solana Labs.

“Arcane accreditation and securities laws in the US will be tested as Americans face exclusion.”

OpenSea has already raised $100 million at a $1.5 billion valuation in a Series B led by VC giant Andreessen Horowitz and is now talking to more investors about raising additional funds that could increase its valuation to over $12 billion.

“I’ve seen a lot of P&Ls, but I’ve never seen a P&L like this,” Roberts said at the time, adding that while OpenSea doesn’t need to raise more cash, the fresh capital will help it acquire companies and create partnerships and joint ventures.

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Layer 1s Lead Crypto Recovery But “Tricky” Macro Environment Raises Potentials for “Extreme and Violent” Moves

After the brutal last weekend, this new week is looking good as the crypto market experiences a bounce. As of writing, Bitcoin is trading well above $51,000 and Ether $4,400.

In the past 24 hours, the total crypto market cap has spiked over 10% to above $2.5 trillion. During this period, the biggest gainers have been SPELL (89%), BTT (67%), LRC (34%), MATIC (32%), and LINK (27%).

The deep decline during the latest sell-off was triggered by the weakness in the stock market, which is driven by weekend illiquidity, the possibility of an accelerated taper, Omicron fears, and inflation concerns.

“Crypto coins and tokens have been propelled higher in this era of ultra-cheap money, and as speculation swirls about just when central banks will start further tightening mass bond-buying programs and start raising interest rates, they are likely to continue to be highly volatile,” said Susannah Streeter, a market analyst at Hargreaves Lansdown.

According to QCP Capital, weakness in the Chinese stock market also has been in play as it noted that the funding rates on Chinese-dominated exchanges like OKEx, Huobi, and BYBIT “continue to be very negative in spite of the bounce in spot off the lows.”

The trigger for risk-off in China was Didi announcing the intention to delist from the NYSE earlier last week, raising concern that the China Securities Regulatory Commission (CSRC) was pushing Variable Interest Entities (VIE) to drop their listings in the U.S.

This week, in a move to boost its slowing economy, the People’s Bank of China announced that it will lower the deposit reserve ratio of financial institutions by 0.5% points, meaning banks now have to hold less amount of money in reserves. This year’s second such move would release 1.2 trillion yuan ($188 billion) in long-term liquidity.

This global traditional market weakness intensified in crypto due to liquidations. As we reported, the price crash and the wipe out of leverage from the market saw a good drop in open interest as well.

“Leveraged longs took a senseless beating over the last week, and it was perhaps overdue,” noted Delphi Digital.

The market was excessively leveraged long while the price was stuck with no spot buying to prop it up. “When there’s nobody left to buy/long, price momentum to the upside is severely limited,” it added.

Now, funding rates have reset, going negative and sentiments turning to extreme fear, which is expected after such an ordeal.

While this reset is positive for the market, QCP Capital expects “a tricky macro environment going forward. This increases the potential for extreme and violent moves like the one we just saw.”

Bitwise Asset Management CIO Matt Hougan is also of the same opinion as in an interview with Bloomberg; when asked whether we are going to have a bigger crash early next year, he said it depends on the outlook for inflation and how aggressive the Fed is.

“I think most of the elements behind the crypto market right now are very bullish. But if we see more aggressive wording from the Fed, more aggressive tapering, you could see Bitcoin sell off. Long term though, I still think there’s an institutional relentless bid for crypto assets, Ethereum in particular. But Bitcoin as well,” he added.

But given the rebound we have seen, Hougan is “very bullish” on this particular dip regarding where we’re going, particularly in Ethereum and other layer one solutions such as Solana, Polygon, and others.

As for price prediction, Hougan sees Bitcoin hitting $100,000 in 2022 but is “not so sure” for this year.

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Author: AnTy

“Extreme Fear” in Crypto As The Market Weakens on Monday on Expectations of “Aggressive Tightening”

The price action faltered after the initial risk-on with all eyes will be on the consumer price report due on Friday. The USD index is near its 17-month high and dollar long positions highest since June 2019.

Last week, the market was spooked by the mixed US jobs report that has investors now expecting a more aggressive tightening by the Federal Reserve.

US payrolls were underwhelmed in November, but at the same time, there was a 1.1 million jump in jobs that pushed unemployment down to 4.2%.

“We think the Fed will view the economy as much closer to full employment than previously thought,” said Barclays economist Michael Gapen.

“Hence, we expect an accelerated taper at the December meeting, followed by the first rate hike in March.”

This week all eyes will be on the consumer price report due on Friday. The key US inflation figure will tell the market more about the early tapering and increase in interest rates.

As Omicron emerged in more countries, Asian share markets had a cautious start on Monday. While the new COVID-19 variant remains a concern, there are reports that cases had mild symptoms.

There was slight risk-on price action in the new week that saw crypto assets recording a small uptick. After momentarily going for $49,455, Bitcoin slid back down towards $47,000. As for Ether, it is back under $4k after recovering to $4,255 over the weekend.

The total crypto market cap is still struggling under $2.3 trillion as the sentiments turn to “extreme fear,” at a level not seen since July.

image1

In the global stocks market, Japan’s Nikkei eased some despite the government considering raising its economic growth forecast to account for a record $490 billion stimulus package.

On Wall Street, after the worst start of December in two decades, S&P 500 added 0.4%, and Nasdaq futures 0.1%.

But with the Fed turning increasingly hawkish, BofA chief investment strategist Michael Hartnett is bearish on equities for next year as he expects a “rates shock” and a tightening of financial conditions while favoring real estate, commodities, volatility, and cash.

Short-term Treasury yields are now being pushed higher. Ten-year U.S. yields also rose off but are still down from 1.669% two weeks back.

The USD index remained around 96.25, near the 17-month high of 96.9, which it hit in late November. As we reported, dollar-long positions have also climbed to the highest since June 2019.

“We expect the dollar to rise as markets price in more rate hikes,” said Commonwealth Bank of Australia strategist Kim Mundy.

“This week’s November CPI data could trigger markets to price in a more aggressive tightening cycle.”

Much like risky assets, gold has also been getting hit since mid-November, when it was around $1,875 per ounce to slide down to $1,760 on Friday. Currently, the bullion is trading under $1,780.

The safe-haven yen has also eased some with the cautiously brighter mood this Monday, though a bumpy ride ahead looms with Omicron and U.S. inflation data. Next week the Fed, European Central Bank (ECB), Bank of England (BOE), and Bank of Japan (BOJ) will be meeting.

“Omicron headlines are moving in the right direction, and the risk-off sentiment may ease off soon,” said analysts at OCBC Bank in Singapore.

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Author: AnTy

BADGER Crashes Over 22% After $120.3 Million of User Funds Get Stolen

BADGER Crashes Over 22% After $120.3 Million of User Funds Get Stolen

The price of the BADGER token has lost more than 22% of its value to drop to $21.32 as the decentralized finance (DeFi) protocol BadgerDAO fell victim to a hack on Thursday.

BadgerDAO is focused on building products to bring Bitcoin to DeFi and provide yield on the leading crypto asset. The protocol has $1.1 billion of crypto assets locked (TVL) in it.

“Badger has received reports of unauthorized withdrawals of user funds,” confirmed the BadgerDAO team on Twitter.

“As Badger engineers investigate this, all smart contracts have been paused to prevent further withdrawals. Our investigation is ongoing, and we will release further information as soon as possible,” the team added.

Security researcher PeckShield reported that a total of $120.3 million involving 2.1k BTC and 151 ETH was stolen from the protocol. One user lost as much as 900 BTC in this exploit.

The attack was reportedly made through the front end of the BadgerDAO, and according to an admin in the project’s Discord channel, the API key for Cloudflare could have been compromised.

In the light of the exploit, it is important that users pay attention to addresses and how much amount in different tokens they are approving.

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Author: AnTy

Purpose Investments Launches Bitcoin and Ethereum ETFs, Will Pay 8%-10% Monthly Yield

Purpose Investments has launched a new crypto exchange-traded fund (ETF) in Canada after introducing the first Bitcoin ETF in North America in February this year.

The funds are Purpose Bitcoin Yield ETF (BTCY.B) and Purpose Ether Yield ETF (ETHY.B), which began trading on the Toronto Stock Exchange this week.

The difference between the Bitcoin and Ether ETFs that began trading earlier this year and the latest Canadian-dollar-denominated ETF non-currency hedged ETFs is that the latter will pay investors a monthly yield.

However, due to the volatility, the company says it can’t guarantee the payout amount though it expects an annual yield of between 8%-10% for both ETFs while charging a management fee of 1.10%.

Vlad Tasevski, COO and head of product at Purpose Investments, says investors could consider these ETFs if they want exposure to the asset class without getting exposed to its intense volatility. But while the losses will be smaller, so will be the gains.

“They should also consider if they want to earn yield while they hold them. Covered call options allow investors to generate additional short-term income on an asset they believe has long-term potential,” Tasevski told Yahoo Finance Canada.

“Given the connection between the volatility of the underlying asset and premiums, covered call strategies on cryptocurrencies offer unique exposure to a unique asset class, providing investors a high yield without sacrificing significant price participation.”

Purpose Investment’s third fund, called the Purpose Crypto Opportunities ETF, also began trading on Tuesday. Canadian-dollar-denominated ETF non-currency hedged units, and U.S.-dollar-denominated ETF non-currency hedged units begin trading under the tickers CRYP, CRYP.B, and CRYP.U.

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Author: AnTy

CME Group Launching Micro Ether Futures Next Month After the Success of Micro Bitcoin Futures

CME Group Launching Micro Ether Futures Next Month After the Success of Micro Bitcoin Futures

After launching micro Bitcoin futures in early May, this year, the regulated exchange CME Group is further expanding its crypto derivatives offerings to include Micro Ether futures on December 6, pending regulatory review.

These Ether futures will be one-tenth of one Ether, which is currently trading at $4,485.

Micro Ether futures will provide an efficient, cost-effective way for individual traders and institutions to hedge their spot ether price risk, said the exchange.

“Since the launch of Ether futures in February, we have seen steady growth in liquidity in these contracts, especially among institutional traders,” said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products.

With the price of Ether more than doubled since then, it has created a demand for a micro-sized contract to make it even more accessible to participants, he added.

CME Group also noted that ever since the launch of Micro Bitcoin futures six months back, more than 2.7 million contracts have traded on the exchange.

As for Ether, over 675,500 Ether futures contracts, equivalent to about 33.8 million Ether, have traded since their launch in February.

In terms of open interest, CME sits at third place in the Ethereum futures market with $1.13 billion in OI compared to Binance at the top spot with $3.15 bln, followed by FTX and Bybit at $2.34 bln and $2.54 bln respectively, according to Skew.

Interestingly, last month, OI on CME went past $1 billion for the first time for Ether futures contracts, while for bitcoin futures, it sits just under $5 bln and just second to Binance’s $5.73 bln.

Meanwhile, the volume of Ether futures on CME was between $500 mln and $2 billion last month, which means it is not even among the top 10 Ether futures venues. Here, Binance is again at the top at $10.75 bln, followed by OKEx, FTX, Bybit, and Huobi, recording $4.92 bln, $2.44 bln, $1.66 bln, and $1.34 bln in volume, respectively.

Today, earlier in the day, the price of Ether also hit a new all-time high at $4,480, up 510% YTD.

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Author: AnTy

Ether Price Hits New ATH After Breaking its Dry Spell with Inflows, Bitcoin Implied Volatility Trends Down

Ether Price Hits New ATH After Breaking its Dry Spell with Inflows, Bitcoin Implied Volatility Trends Down

Last week was a subdued one when it comes to the digital asset investment products after the record $1.5 billion inflows the week prior, following the US SEC permitting a Bitcoin futures ETF decision.

With only $288 million inflows in the week ending October 29, the total year-to-date inflows have risen to a record $8.7 billion, already 30% higher than 2020, according to CoinShares’ weekly report.

Bitcoin, yet again, saw the majority of inflows totaling $269 million last week, which brings its total inflows for October to $2 billion.

During this month, the price of Bitcoin surged 40% to as high as $67,000. As of writing, Bitcoin has been trading above $63,000.

Price is seeing some action this week after the lack of it last week, which resulted in the funding rates falling. The funding rate has even drifted negative for a smaller period though it remains positive overall.

But “market sentiment is still very much a bull-dominated one,” noted Delphi Digital. This means, in the current environment, bulls are buying every dip, which implies a higher degree of long leverage, so another “long squeeze” can’t be ruled out.

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October also saw a 24% increase in total adjusted on-chain volume to $856.

Much like volume and price, open interest climbed with CME rising by 149% to $4.26 bln while the daily average volume jumped by over 114% to $3.9 billion. On the options front, BTC’s monthly options volume increased by 52.3% to $30 billion.

Bitcoin’s volatility is actually going down, which measured over a 260-day period during the recent ATH dropped to around 66, a level not seen since May when the price dipped under $40k.

According to the DVOL index, which measures the approximate implied volatility for a market over the next 30 days, the leading crypto asset’s latest rallies have not been met with much action in implied volatility.

High implied volatility points to the market pricing in more price uncertainty, while low implied volatility indicates less uncertainty. Implied volatility tends to spike during market sell-offs and trends lower when BTC steadily trends higher.

“We haven’t seen an extreme swing upwards on implied volatility, which tells us that the general market is comfortable with what BTC is doing,” said Delphi Digital, noting if BTC rallies back above $67k and implied volatility starts to surge, “it could be an indication that another short-term pullback is imminent.”

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Coming to the altcoins, the largest one, Ethereum (ETH), which hit a new all-time high today at $4,480, finally broke its three-week dry spell with inflows of $17 million, which has its 2021 inflows now coming at $1 billion. As a result of Ether’s outperformance, its market share rose back to 32%.

Other altcoins like Solana (SOL), Polkadot (DOT), and Cardano (ADA) also recorded inflows of $15 mln, $6.2 mln, and $5 mln respectively. SOL 8.43% Solana / USD SOLUSD $ 220.28
$18.578.43%
Volume 3.02 b Change $18.57 Open $220.28 Circulating 300.94 m Market Cap 66.29 b
10 h Ether Price Hits New ATH After Breaking its Dry Spell with Inflows, Bitcoin Implied Volatility Trends Down 4 d Crypto.com Integrates with Solana, App Becomes 3rd Most Downloaded as Ad Featuring Matt Damon Airs Worldwide 1 w Investors Continue to Take Profit on Ether While Pouring Money in Solana and A Record $1.45 Billion in Bitcoin
DOT 3.75% Polkadot / USD DOTUSD $ 51.67
$1.943.75%
Volume 3.75 b Change $1.94 Open $51.67 Circulating 987.58 m Market Cap 51.03 b
10 h Ether Price Hits New ATH After Breaking its Dry Spell with Inflows, Bitcoin Implied Volatility Trends Down 1 w Investors Continue to Take Profit on Ether While Pouring Money in Solana and A Record $1.45 Billion in Bitcoin 1 w Cosmos Unveils New Blockchain, Sagan, A Canary Network to Allow Developers to Run Tests And Experiments
ADA 1.32% Cardano / USD ADAUSD $ 1.97
$0.031.32%
Volume 2.46 b Change $0.03 Open $1.97 Circulating 33.27 b Market Cap 65.63 b
10 h Ether Price Hits New ATH After Breaking its Dry Spell with Inflows, Bitcoin Implied Volatility Trends Down 4 d Australia’s Securities Watchdog (ASIC) says BTC and ETH ‘Satisfy’ All Criteria for ETPs 1 w Investors Continue to Take Profit on Ether While Pouring Money in Solana and A Record $1.45 Billion in Bitcoin

Multi-asset investment products, however, saw outflows for the third time of a record $23 mln. “We believe investors are currently preferring single-line exposure and are becoming more discerning over their altcoin exposure,” said James Butterfill, investment strategist at CoinShares.

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Author: AnTy

Bitcoin Market Is Not as Leveraged as it Looks, Gas Spikes as Ether Hits a New ATH

Bitcoin is back above $61,000 ahead of the weekend after a sharp decline took the leading cryptocurrency to under $58k last night.

What’s assumed to be an issue of a fat finger, it sent the price of Bitcoin crashing to about 10%, but it regained $62k back again soon enough.

While Bitcoin is currently struggling to move higher, Ether has gone ahead and hit its new all-time high just above $4,400. ETH is currently trading around $4,325; this jump in price has sent the funding rates higher, with the highest currently on Deribit at 0.0915%.

This latest bout of volatility has sent the gas prices on the Ethereum network to surge as demand picks up. The average fees jumped to $51.5, and gas prices went past 200 Gwei.

“Historically, when gas gets expensive, we’ve seen activity spike on alternative L1s. But now that Arbitrum and Optimism are live, L2s could wind up being the primary beneficiaries,” said Delphi Digital.

Ethereum scaling solution Arbitrum’s transactions went parabolic in early September, in less than two weeks of its launch. But since then, Arbitrum and another layer 2 Optimism, which went live in July and saw a jolt of adoption, have had their transactions fall and plateau for most of October.

Notably, Arbitrum currently has put a cap on network gas, and once that’s lifted, more activity could again be seen on the L2.

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As for Ether’s open interest, it also climbed to a new high of $12.52 bln, recovering fast from the drop to $$11.26 bln during this week’s volatility.

On CME, OI on Ether futures hit a $1.11 bln peak today, last seen last Wednesday. CME sits at 6th place in Ether OI, with Binance leading the pack with $3.06 bln notional OI followed by FTX’s $2.26 bln, according to Skew.

Unlike Ether, CME has the second spot for Bitcoin futures OI at $5.05 bln, having slipped from the top rank, Binance reclaimed its position again at $5.28 bln in OI. FTX at third place has some catching up to do at $3.89 billion.

Total OI has fallen to $24 bln from $26.47 bln early last week, while the highest Bitcoin funding rate on Bybit is at 0.0578%.

According to trader and economist Alex Kruger, the Bitcoin market is considerably less leveraged than people think because of investor protection; the regulated exchange CME requires 40%-50% in margin, which means maximum leverage is about 2x. On crypto exchanges, it’s much higher.

Interestingly, with Bitcoin above $60k, the interest in the cryptocurrency has fallen to June levels and before that early December levels.

“When Bitcoin reclaims April’s ATH, a lot of untapped demand will begin to unlock. Low retail engagement is shown in Google search results, which are as low as they were in May/June when Bitcoin was just $30K. Sustained highs will unlock demand for the next parabolic leg up,” noted Charles Edwards, founder of Capriole Investments.

However, greed in the market has flown high, with the Crypto Greed and Fear Index currently having a reading of 70, a fast shift in sentiment from ‘extreme fear’ last month at a reading of 24.

This is due to the interest of retail shifting to meme coins with SHIB, the latest darling. After SHIB dominated the market earlier in the week with an appetite for high risk still there, other dog coins are seeing the rotation of profits from SHIB and into them. SHIB 9.27% SHIBA INU / USD SHIBUSD $ 0.00
$0.009.27%
Volume 14.29 b Change $0.00 Open $0.00 Circulating 10 t Market Cap 41.08 b
5 h Web 3 and DeFi Dominates Coinbase Investment in Q3, Hits Top Spot on Apple’s US App Store 11 h Bitcoin Market Is Not as Leveraged as it Looks, Gas Spikes as Ether Hits a New ATH 1 d Zoomer Meme Coin (SHIB) Outperforms the Boomer Meme Coin (DOGE), Will This Mark the Top of the Cycle Again?

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Author: AnTy