Bitcoin Shorts Get Annihilated, OI Drops by 50k BTC from Last Week

While Bybit Bitcoin’s futures had the biggest drop of 15.59% in OI, followed by Binance’s 12% in the past 24 hours, Bitfinex, FTX, and CME had the biggest increase of 12.81%, 11.54%, and 11.86%, respectively.

Bitcoin price surged to nearly $40,000 in a strong upwards move, late on Sunday or early Monday. This represents a nearly 36% jump in price since the $29,300 low last Tuesday.

While several factors like Alameda Research putting in a bottom by “buying a LOT” at the lows, Tesla CEO Elon Musk announced his bullishness for crypto, and speculation over Amazon’s potential involvement in the cryptocurrency sector contributed to this bullish strength, shorts have a significant part to play in this.

As we have been reporting for the past month, the funding rates on the perpetual contracts have been staying in the negative, with the market extremely short on BTC. At the same time, open interest continued to climb sharply.

And finally, an epic short squeeze happened.

In the past 24 hours, 102,558 traders have been liquidated for $1.14 billion, with nearly $945 million of it belonging to shorts, as per Bybt.

The figure is expected to be much higher given that Binance had stopped showing its real liquidation numbers and is currently accounting for less than 20% of all liquidations when it used to be about half, much like Bybit.

“Bitcoin shorts just got blown out. Quarterly basis popped from 5% to >10% briefly,” noted trader and economist Alex Kruger.

Amidst this, Binance and FTX have reduced their leverage offering from more than 100x previously to now only up to 20x. Andrew Kang, Mechanism Capital, said,

“Usually, big short squeezes like we saw on BTC today bleed out, but this continued upward momentum is pretty indicative of shorts/stables being price-insensitive buyers trying to scoop any liquidity they can.”

The result of this short squeeze can also be seen in open interest. Total OI on Bitcoin futures has crashed by 50k BTC — currently at 349.7k BTC from over 400k BTC less than a week back.

In the past 24 hours, OI on Bybit Bitcoin’s futures had the most significant drop of 15.59%, followed by Binance’s 12%, which leads the futures space. OI on Binance is now at 79.1k BTC, down from 101.37k BTC on June 20, which increased 78% in nearly a month as new short positions were opened.

Meanwhile, Bitfinex, FTX, and CME had the most significant increase of 12.81%, 11.54%, and 11.86%, respectively, as of writing.

In the case of Ether, Binance is the only with a decrease, of only about 3.67%, though, in OI. Total Ether OI is now 2.54 million ETH, down from 2.94 million ETH in less than a week. SplitCapital said,

“Make no mistake, the real pain won’t come from shorts rather the absurd amount of people that are parked all in stablecoins. They won’t chase till 40k breaks.”

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Author: AnTy

Coinbase Withdraws From Blockchain Association Shortly After Binance.US Joins

  • Coinbase withdraws from the blockchain lobbyist group a day after Binance.US, Binance’s American wing, joined the group.

In a report first published by The Block, Coinbase seems to have withdrawn from the Blockchain Association, a blockchain lobbyist group due to “recent decisions” within the group. The withdrawal follows the recent introduction of Binance.US, a crypto exchange rival to Coinbase, to the lobbyist group.

Coinbase, a founding member of the now-23 team association, wrote a letter addressed to the association claiming its resignation immediately. While the letter did not specifically mention the addition of Binance.US as the cause, the tone of the letter gives away pretty much on Coinbase’s view. Criticizing the membership criteria of the association, the letter reads,

“And while we hope the Blockchain Association remains committed to those values, unfortunately, recent weeks have demonstrated to us that the Blockchain Association is not interested in the membership criteria we had worked to establish to underpin the mission of this organization.”

The letter further states the “shift in organizational goals is not in line” with the plans the exchange had while founding the organization “nor the objectives of the association.”

A spokesperson from the exchange claims the recent decisions by the Blockchain Association hastened Coinbase’s departure, further stating,

“We believe that decisions made now have the potential to irreparably impair the credibility of the Association and make it increasingly difficult for it to achieve its goals and those of its members.”

The resignation from the Association will closely be linked to Binance.US joining the platform, despite all parties involved not commenting directly on the subject. In a tweet sent out on Tuesday, Blockchain Association stated they were disappointed to see Coinbase leave the organization “at a critical time for the industry” but defended their membership criteria saying,

“However, we believe that it is important to abide by our established neutral membership criteria + honor majority Board opinion.”

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Author: Lujan Odera

Binance Partners With CM-Equity To Expand Its Market Reach In Germany And Europe

  • Binance’s latest partnership set to introduce its trading services and crypto asset management to clients in Germany and Europe.

In an announcement on Friday, Binance, the largest crypto exchange in daily volumes traded, announced its partnership to a German investment firm, CM-Equity, to provide crypto brokerage and asset management services in Europe.

Cryptocurrency investors and traders within Europe and Germany will now be able to operate proprietary trading and brokerage services ON Binance. CM-Equity is a BaFin regulated investment firm that opens up a regulation-compliant gateway for Europeans to trade crypto assets and associated derivatives on a highly secure and liquid platform.

Binance aims to penetrate the European market in the preparedness of their upcoming VISA enabled debit cards set to be launched later this year. On the partnership, Changpeng Zhao ‘CZ’ said the two firms aim to “grow the digital assets industry in a sustainable way” as they expand their crypto services to global clients.

He further said,

“By joining forces with CM-Equity, Binance will be able to broaden our services in Europe while ensuring compliance with local regulations.”

CM-Equity was launched in 2020, growing into a fully compliant investment bank and has gained its license from the German Financial Markets Authority, BaFin. The German financial regulator launched its guidelines on foreign crypto custodians and crypto firms offering services in the country earlier in the year.

The partnership with one of the biggest crypto exchanges opens a new world of possibilities, Michael Kott, CEO of CM-Equity, He concluded,

“Our fully licensed digital assets platform will benefit from the best liquidity and frictionless service offered by Binance.”

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Author: Lujan Odera

Bitfury’s Crystal Research Reveals UK and US Are Hotbeds For Cryptocurrency Exchanges

Crypto exchanges are increasingly growing in popularity. Exchanges are also becoming country-specific, Binance’s proposed launch of a US exchange is evident of that.

In a study titled “Report on International Bitcoin Flows 2013–2019” Bitfury’s blockchain analytics platform Crystal shows that the UK, the US, Hang Kong, and Singapore have the largest number of registered exchange.

Exchanges included in this study had a good level of activity completing at least 1,000 transactions to date.

They predominantly focused on exchanges from the “G20 & Other” group. This is due to the large number of exchanges registered in these countries, as well as the recent G20 announcement of its support for the FATF customer data-sharing recommendation. The report states:

“In 2018, the total volume of bitcoin directly transferred between exchanges was almost $92.6 billion. A total of $65.1 billion was transferred by exchanges from G20 countries, Hong Kong, and Singapore.”

The U.S. is undoubtedly one of the global leaders when it comes to crypto adoption and use. As things stand, investors have the option of purchasing not only Bitcoin but over 45 other digital assets across the country. On the other hand, UK is widely considered to be a global leader when it comes to crypto adoption and innovation.

The study predicts that the number of exchanges operating with unknown countries of origin will reduce, as under the FATF guidelines they will need both an official registration as well as a license to operate.

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Author: Sritanshu Sinha

Binance’s Venus will Face the Same Challenges as Facebook’s Libra, says Crypto Researcher

  • Libra to serve as a cautionary tale for Binance’s Venus
  • The exchange is planning to launch an independent association in charge of stablecoin project
  • Instead of Western companies, Venus’ geographic scope aligns with Beijing’s infrastructure initiative

Last week, the world’s largest cryptocurrency exchange Binance announced its upcoming project, Venus.

With that the Mata-based crypto platform became the latest one to join the list of companies coming up with their stablecoin after Facebook’s Libra.

Libra, however, does not paint a picture of confidence as, since its announcement two months back, regulators have shot criticism at the project.

From Bank of England Governor to Federal Reserve Chairman, ECB President, US Treasury Secretary, and other authorities, all have raised concerns including privacy, money laundering, consumer protection, and financial stability.

Facebook has now hired a lobbying firm to help with the regulators. However, Binance has learned from this push back and as such will take a different approach.

“If we want to launch Venus in a country, we’ll make sure it complies with the regulations,” the exchange’s co-founder He Yi told Bloomberg. For this project, Binance drew inspiration from Libra in many ways but resistance from the government will serve as a cautionary tale for the firm.

Binance announced that it is looking for partners to create the stablecoin that will be pegged against a basket of government-issued currencies.

Just like Facebook’s Libra Association for its cryptocurrency, the exchange is also planning to form an independent association in charge of Venus. But the company, He said, will take a “more conservative approach” to push through the project, with a focus on regulatory compliance instead of technological developments.

Notably, Venus will focus on partnering with companies and governments in non-Western companies. The “belt and Road Version of Libra” has its geographic scope roughly align with Beijing’s infrastructure initiative.

China, meanwhile, is ready to launch its central bank digital currency (DC/EP) after five years of research.

“So far regulators around the world can’t gauge precisely the potential risks stable coins will bring to their financial systems, and that’s why they are very careful about Libra-like currencies,” said Hu Tao, founder of Beijing-based crypto researcher TokenInsight. “In theory, Binance will face the same challenges as Facebook.”

At the time of Venus reveal, unlike other times, Binance released two separate announcements and in the Chinese statement, it advises the government to launch a regulatory sandbox that allows private firms to issue their own stablecoins.

“It’s better to embrace the change rather than missing the opportunity,” read the statement.

As for the launch, currently there is no time but in the next few months, more details including partnerships are expected to be released, He said.

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Author: AnTy

Harmony Token (ONE) Surges by 800% Over 24-Hour Period Due to Binance IEO

Harmony Token (ONE) Surges by 800% Over 24-hour Period
  • Within just 4 hours of its launch, Binance’s new DEX platform witnessed more trade activity than what IDEX saw over a 24-hour period.
  • Harmony’s market capitalization since yesterday afternoon has exceeded that of Binance’s BNB token.

Harmony (ONE) — an altcoin that is part of Binance’s latest IEO offering— has seen its value surge by a whopping 800% since yesterday afternoon, thereby increasing the currency’s total market cap to around the $600 million mark.

At this point, it should also be highlighted that this digital asset is the first crypto offering to debut simultaneously on Binance’s regular native trading platform as well as its newly-launched decentralized exchange— Binance DEX.

In regards to this development, we should also mention that over the course of the past few weeks, Binance’s executive brass has been able to generate considerable buzz around the ONE token — primarily by promoting a new free giveaway campaign in relation to the coin.

More on the Matter

Harmony was a little known project before its partnership with Binance, however, since its launch, the token has been on a financial tear.

On the subject, a popular crypto analyst was quoted as saying:

“It’s up by 800%+ from (the) IEO. Wouldn’t recommend chasing this. I’ve been eyeing this for a while. This has very huge hype. But not gonna buy at this price. Will wait for dips in the coming weeks. If it moons hard, I don’t mind missing this. Plenty of other choices.”

  • Binance’s DEX platform witnessed more trade activity within a 4 hour time period than what IDEX — one of its closest rivals — saw in more than a day.
  • Since the beginning of May, Binance has been experiencing a pullback of sorts because of its recent $41 million hacking scandal.
  • Over the course of the past 2 weeks or so, Binance’s native token offering (the BNB Coin) has been experiencing a massive monetary surge — with the premier altcoin reaching a price point of $35 for the first time recently.
  • According to a research piece released by Binance a few days ago, the firm has revealed that the crypto market is currently experiencing a “changing trend” that is helping the global investor community view assets like BTC, BCH in a positive light once again.

Final Take

In closing out this piece, we need to point out that since the start of the year, more and more institutional investors have continued to enter this nascent market space. It now remains to be seen how the future of this industry plays out from here on end.

“}” data-sheets-userformat=”{“2″:513,”3”:{“1″:0},”12”:0}”>Latest Binance News and Crypto Exchange Updates

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Shiraz J