Search Results for: Deribit

Deribit, the largest cryptocurrency options exchange, announced plans to introduce options trading for altcoins Solana, Polygon, and Ripple. Despite tumbling prices and regulatory uncertainties, this move could boost liquidity, enable risk management, and strengthen Deribit’s position in the volatile market.

“The crypto market performance has been tepid this week with Bitcoin staying below $26,000. Despite SEC revisiting its denial of Grayscale’s ETF bid, other application avenues remain restrained. Deribit, a crypto derivatives platform, saw a 17% surge in trading volume, indicating strong activity in the global crypto options market.”

Despite a global slump in derivatives activity, Deribit’s crypto trading volume demonstrated resilience, with the total activity of options, futures, and perpetual futures rising 17% compared to the previous month. This strong performance can be attributed to successful option contracts execution, allowing Deribit to control nearly 90% of global crypto options activity, highlighting its considerable market influence.

An investor speculated to be a whale has been trading substantial call options, acquiring nearly 92,600 ETH call option contracts valued at about $150 million on Deribit. This activity, despite the gloomy phase for ETH, demonstrates the optimistic outlook of some whales on the future of the ether market.

“Bitcoin’s sudden recovery to approximately $26,000 raises questions about the influence of major exchanges. However, without strong bullish catalysts, this resurgence may face resistance. Fears of an altcoin crash emerge as FTX exchange plans to offload an estimated $3.4 billion in altcoins, hinting at a bearish market for this crypto category.”

Bitcoin’s price and its 30-day implied volatility have resumed a negative correlation, hinting at expected declines. Rising volatility and falling price indicate a bias for protective measures against price slides. Concerns involve potential liquidations by FTX, monetary restrictions by the Federal Reserve, and fears of global monetary tightening. This shift in volatility trend could impact the broader crypto market.

The recent increase of out-of-the-money call and put options associated with Bitcoin signals heightened vigilance among traders, anticipating what’s known as “tail risk”. This situation arises from concerns that Bitcoin’s value, already stagnating around $26,000, could abruptly shift due to an extreme event. Market data reflects this potential instability, despite outward price stability, tying into broader macroeconomic uncertainties.

“Cryptocurrency Bitcoin (BTC) and Ether (ETH) have seen modest price increases, but still sit below so-called “maximum pain” levels for August options contracts buyers. Deribit will settle $1.9 billion BTC contracts and $893 million ETH contracts this Friday. Sellers of call and put options often attempt to drive the asset’s price towards the maximum pain degree for highest loss infliction on option buyers.”

Bitcoin’s volatility index, DVOL, recently surged, causing a stir as funding rates for Bitcoin perpetual futures dipped globally. According to Griffin Ardern, a volatility trader, this sudden price dip triggered hedging behaviors, catalyzing a deeper decline. These shifts highlight the complexities and inherent risks in crypto markets and crypto futures trading.

“A Q2 2023 report indicates a significant expansion in crypto-derivatives fueled by decreased spot market liquidity and a shift towards using derivative instruments. This is a result of regulatory scrutiny, significant SEC actions, and a complex interplay of market factors. Consequently, the emerging crypto derivatives market holds substantial potential for global institutional adoption, even amid regulatory uncertainty.”

“Slippage, the gap between estimated transaction cost and the price actually paid, has been a significant indicator in the ether market. Data shows spikes in slippage signaling trend changes. However, it can also result in traders paying higher than intended, underscoring its dual role.”

“The crypto markets recently have been nothing short of a roller coaster ride. Major altcoins and Bitcoin experienced dips and recoveries amidst industry-specific and macro events, contributing to significant market volatility. The anticipation of major events like Blackrock’s spot ETF ruling and Bitcoin halving suggests continued market turbulence.”

The Worldcoin token, launched by OpenAI creator Sam Altman, raised market concerns due to its tokenomics. Trading volume exceeded its capitalization by 1.6 times in just 24 hours, attributed to the project loaning massive numbers of tokens to market makers. Additionally, 40% of these tokens will be unlocked between 2024 and 2025, raising concerns about price stagnation and depreciation for potential investors, alongside possibly counterintuitive Bitcoin trends.

Deribit’s Bitcoin volatility index, a crypto “fear gauge”, has hit its low since its launch, suggesting minimal near-term price fluctuation. This trend may imply diminishing crypto volatility, but could also signal opportunities as market predictions often swing unpredictably.

“Despite recent volatility and speculative downturn in cryptocurrency, the options market remains optimistic, with a palpable, positive call-put skew signaling a persistently bullish sentiment. Significant trading action indicates market expectations for Bitcoin values to breach the $31,000 barrier, potentially revitalizing the rally.”

“Crypto trading volumes surged 14% in June, attributed to anticipation of spot bitcoin ETF proposals. However, regulatory scrutiny shadows this optimism, emphasizing a need for investor safeguards potentially conflicting with the autonomy inherent to crypto enthusiasts. The path to wider acceptance is complex.”

Approximately 150,000 BTC options contracts, equivalent to $4.5 billion, expired on Deribit recently, accounting for over 85% of global crypto options activity. The event caused less upheaval than anticipated in spot price movements, indicating that market adjustment to such large contract expirations can be minimal. The cryptocurrency market, however, remains rife with strategic considerations.

Ether (ETH) options contracts worth $2.3 billion are set to expire this Friday on the crypto derivatives exchange Deribit. The event may cause significant market shifts, with overwriting trends impacting ether’s volatility and price. While it implies stability for ether, potential shifts in volatility will determine the direction of ether and bitcoin markets.

Bitcoin price sustains above $30,000, attracting more buyers and aiming to challenge seller congestion between $31,000 and $32,000. Despite consolidation, investors should remain cautious as the Relative Strength Index (RSI) retraces from the overbought region, potentially leading to market turbulence.

Bitcoin holds above $30,000 while Ether trades lower as the crypto market anticipates upcoming quarterly options expiry. Meanwhile, investors shift focus to AI technologies, and financial institutions adopt tokenization as crypto’s new buzzword.

The recent crypto market rally remains strong despite lawsuits against major exchanges Coinbase and Binance. Upcoming expiration of a large number of Bitcoin and Ethereum options suggests potential volatility. Investors should remain vigilant, understanding the risks and conducting thorough market research.

The crypto market experiences a revival as bitcoin surges over 15% last week. With approximately 150,633 bitcoin options contracts worth $4.57 billion and 1.23 million ether contracts valued at $2.3 billion set to expire on Deribit exchange, market makers face significant negative gamma exposure, potentially leading to an exaggerated price rally or drop.

The surge in Bitcoin’s price to two-month highs has increased demand for call options and options market activity. Driven by spot Bitcoin ETF applications, $3.3 billion worth of Bitcoin options contracts were traded on Wednesday. The bitcoin volatility index (DVOL) reached its highest level since early April.

In anticipation of Bitcoin’s fourth mining reward halving in April next year, Deribit is listing June 2024 expiry futures and options, allowing investors to hedge against market volatility. This decision, driven by investor demand, highlights the importance of effective hedging strategies and showcases the high stakes in the crypto market.

Bitcoin and the broader cryptocurrency market experienced a second consecutive day of sell-offs amid worries around inflation and potential interest rate hikes. These concerns stemmed from the U.S. House of Representatives passing a debt ceiling deal, causing Bitcoin to decline to $26,800. Meanwhile, Kraken sees growth in Canada despite the ongoing downturn and increased regulatory scrutiny.

Bitcoin and Ethereum maintained positions during a significant options expiration event, with $2.26 billion expiring for Bitcoin and $1.25 billion for Ethereum. Options contracts can cause price fluctuations and increased short-term volatility. Reduced liquidity has negatively impacted the market, while experts predict further price fluctuations post-expiration.

Bitcoin and ether have exhibited rare calm due to competing influences and the crypto options market’s growing impact. Market makers maintaining long call positions, or positive gamma, must continually trade against spot prices, resulting in negative feedback loop, and keeping prices locked in a narrow range. As the options market affects spot prices, observing the interplay between them will be crucial for investors.

As the US faces a debt ceiling crisis, Bitcoin options market displays a six-month bias towards weakness, with the call-put skew at its lowest since March. Investors now show a preference for put options, aligning with recent trends in the S&P 500 market. The uncertainty surrounding debt ceiling negotiations impacts bond markets, and Bitcoin’s price fell by 10%, as the US dollar’s appeal as a safe haven grows.