#Cme Group Bitcoin trading

[unpluggedfinancial]

The History and Evolution of Bitcoin: From Whitepaper to Global Phenomenon

In 2008, amidst the financial chaos of the global economic crisis, an enigmatic figure known only as Satoshi Nakamoto released a whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System." This document laid the foundation for what would become a revolutionary digital currency that challenged traditional financial systems. Today, Bitcoin is a global phenomenon, but its journey from a whitepaper to widespread adoption is a story filled with innovation, controversy, and dramatic shifts.

The Birth of Bitcoin

The concept of Bitcoin emerged in the wake of the 2008 financial crisis, a period marked by widespread distrust in traditional financial institutions. Satoshi Nakamoto's whitepaper proposed a decentralized digital currency that would operate without the need for a central authority. In January 2009, Nakamoto mined the genesis block, or block zero, which contained the message: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks." This embedded text highlighted Bitcoin's origins as a response to financial instability.

Shortly after, the first Bitcoin transaction took place between Nakamoto and a programmer named Hal Finney, marking the beginning of a new era in digital finance.

Early Years and Growth

Bitcoin's early years were characterized by rapid development and growing interest from tech enthusiasts. In 2010, BitcoinMarket.com, the first Bitcoin exchange, was established, providing a platform for trading Bitcoin. The same year, a programmer named Laszlo Hanyecz made history by purchasing two pizzas for 10,000 BTC, in what is now known as the first real-world Bitcoin transaction.

As interest in Bitcoin grew, so did its mining community. Early adopters utilized personal computers for mining, but the increasing difficulty of mining puzzles soon led to the creation of mining pools, where groups of miners pooled their resources to solve blocks more efficiently.

Increasing Adoption and Market Development

Bitcoin's journey to mainstream awareness was not without its hurdles. The rise of Bitcoin exchanges, most notably Mt. Gox, played a crucial role in its growing popularity. However, these platforms also exposed Bitcoin to significant risks. The infamous Mt. Gox hack in 2014 resulted in the loss of approximately 850,000 BTC, shaking investor confidence.

During this period, Bitcoin also gained notoriety for its association with illicit activities, primarily through the dark web marketplace Silk Road. Despite these controversies, Bitcoin's value continued to rise, driven by its potential as an alternative to traditional currencies.

Technological Advancements and Forks

As Bitcoin's user base expanded, so did the need for technological improvements. The introduction of Bitcoin Improvement Proposals (BIPs) allowed the community to propose and implement changes to the network. One of the most significant debates was the block size controversy, which ultimately led to the creation of Bitcoin Cash in 2017. This fork aimed to increase transaction speeds and lower fees by increasing the block size limit.

Other notable advancements included the implementation of Segregated Witness (SegWit) to reduce transaction size and the development of the Lightning Network to facilitate faster, low-cost transactions.

Institutional Interest and Mainstream Acceptance

Bitcoin's journey from a niche interest to mainstream acceptance gained momentum in the late 2010s. Early adopters in the tech industry, such as Overstock and Microsoft, began accepting Bitcoin as a form of payment. Financial institutions and investors also started to take notice, with 2017 marking a significant year as Bitcoin futures were launched by CME and CBOE.

In recent years, payment giants like PayPal have integrated Bitcoin into their platforms, further legitimizing its use as a medium of exchange and investment asset.

Bitcoin’s Role in the Global Economy

Bitcoin's role in the global economy has evolved significantly. Often referred to as "digital gold," Bitcoin is increasingly seen as a store of value and a hedge against inflation. Its price movements are influenced by global economic events, such as the COVID-19 pandemic and geopolitical tensions.

Notably, some countries have begun to adopt Bitcoin as legal tender. El Salvador made headlines in 2021 when it became the first country to officially recognize Bitcoin as an official currency, sparking debates about the future of national currencies and financial sovereignty.

Challenges and Controversies

Despite its successes, Bitcoin has faced numerous challenges. Regulatory scrutiny and government crackdowns remain persistent threats to its widespread adoption. Environmental concerns about the energy consumption of Bitcoin mining have also sparked debates about the sustainability of the network.

Security issues, such as high-profile exchange hacks and the loss of private keys, continue to pose risks for investors. However, ongoing developments in security practices aim to mitigate these concerns.

The Future of Bitcoin

As Bitcoin continues to evolve, its future remains a topic of speculation and excitement. Potential technological advancements, such as improvements to the Lightning Network and further scalability solutions, promise to enhance its usability.

Predictions for Bitcoin's role in the future financial system vary, with some envisioning it as a dominant global currency, while others see it as a valuable digital asset akin to gold. The ongoing debate about Bitcoin's classification—whether as a currency, commodity, or something entirely unique—reflects its multifaceted nature.

Conclusion

From its inception as a response to financial instability to its current status as a global phenomenon, Bitcoin's journey has been nothing short of extraordinary. Its transformative impact on finance and technology continues to unfold, challenging traditional systems and offering new possibilities for the future. As Bitcoin evolves, staying informed and considering its implications will be crucial for anyone interested in the future of money.

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[cryptogirl2024]

XRP ETF Moves Forward As CME Develops XRP Index: Report

The CME Group has made a significant move in advancing the XRP community by launching an XRP reference rate and a real-time index. This development was discussed by Tim McCourt, the Senior Managing Director of CME, during the Ripple Swell 2024 event, signaling progress in XRP product development.

SEC Reviews XRP ETF Proposals

The U.S. Securities and Exchange Commission (SEC) is currently reviewing two proposals for XRP-based exchange-traded funds (ETFs) from Bitwise Asset Management and Canary Capital. Both firms aim to provide institutional investors with access to XRP through these funds. However, industry experts highlight challenges in the approval process, particularly the lack of XRP futures contracts on CME. Unlike Bitcoin and Ethereum, which have established futures markets that support their ETFs, the absence of XRP futures could deter SEC approval.

Political Factors in ETF Approval

In discussing the potential for XRP ETF approvals, ETF Store President Geraci pointed out that a favorable regulatory climate might emerge if Donald Trump wins the upcoming U.S. presidential election. His victory could lead to more supportive regulations for cryptocurrencies. Nevertheless, Geraci cautioned that approval is not guaranteed, even with a Trump presidency. The SEC is likely to require co-surveillance agreements to prevent market fraud, emphasizing the importance of a clear regulatory framework from Congress to guide the future of XRP ETFs and other digital assets.

[scarletnews]

Bitcoin: Most Successful CME Group Cryptocurrency Product Launch

CME Group, the world’s leading derivatives marketplace, today announced that its Bitcoin Friday futures (BFF) have launched and are available for trading. 31,498 contracts traded across two different contract weeks. The first trade, a block, took place on Sunday, September 29 and was executed by Galaxy and Marex. “With more than 31,000 contracts traded on day one, Bitcoin Friday futures have…

[blockinsider]

US Jobs Report Sparks 4% Bitcoin Price Drop Amid Market Uncertainty

Key Points

Bitcoin price has dropped 4% amidst global market anxiety due to the upcoming US jobs report.

Other major cryptocurrencies, including Ethereum and Solana, are also experiencing losses.

Bitcoin’s price has shown instability this week, declining to nearly a one-month low as global markets move away from riskier assets. On Wednesday morning, the top cryptocurrency saw a drop of over 4%, trading around $56,700.

This downturn isn’t confined to Bitcoin. Other prominent cryptocurrencies are also under pressure. Ethereum, the second-largest digital asset by market capitalization, experienced a 5% drop over the past 24 hours, hovering around $2,400. Similarly, Solana also reported losses this week.

Market Retreat and Investor Concerns

The current downturn is part of a wider market retreat prompted by concerns about the global economic outlook. Investors are keenly observing the US payroll data due on Friday, which will provide insights into the Federal Reserve’s next course of action. This could potentially impact various markets, including cryptocurrencies.

In the options market, demand for protection against further Bitcoin price declines has noticeably increased. In a recent interview with Bloomberg, Sean McNulty, director of trading at liquidity provider Arbelos Markets, said traders are particularly keen on hedging against potential drops following the payrolls report and after the November presidential election.

“We’ve seen renewed downside buying interest in Bitcoin options, especially for post-payroll strikes at $55,000 and lower,” McNulty stated. He also noted that a significant position has been opened for options expiring on November 29 at a $35,000 strike price.

Signs of Market Caution

Further signs of market caution are seen in the decrease in open interest for Bitcoin futures on the CME Group Inc platform, which has fallen to its lowest level since May. Also, US Bitcoin exchange-traded funds (ETFs) have seen their longest five-day streak of net outflows since June. On Tuesday, these investment funds recorded a net outflow of $287 million.

Katie Stockton, a technical analyst at Fairlead Strategies LLC, recently changed her long-term outlook on Bitcoin to a “neutral bias.” She mentioned the increasing likelihood of a test of the $52,000 to $50,000 price range, a sentiment shared by Tony Sycamore, a market analyst at IG Australia Pty, who also warned of potential downside risks.

Despite this uncertainty, some investors see an opportunity. Rekt Capital, a renowned Bitcoin analyst, recently discussed the current market phase, explaining that Bitcoin is in a reaccumulation phase following its most recent halving.

Interestingly, the crypto market is 140 days after the halving. According to Rekt Capital, this phase usually precedes a major breakout, with the potential for a significant price surge as early as late September.

“We’re really getting close to that breakout point in late September, as the post-halving reaccumulation phase tends to precede the parabolic phase,” the analyst stated.

[coineagle]

Nasdaq Launches First Bitcoin Index: Implications for BTC’s Road Ahead

Key Points

Nasdaq and CME Group are expanding Bitcoin trading options with new products.

These developments could increase Bitcoin trading liquidity and potentially drive Bitcoin prices higher.

Nasdaq and CME Group are making considerable progress in diversifying Bitcoin trading options, potentially influencing the future of Bitcoin (BTC).

Nasdaq is taking the lead with its inaugural BTC index. The firm has submitted an application to the US SEC to list and enable trading of Nasdaq Bitcoin Index Options (XBTX).

Increasing Accessibility and Confidence

John Black, Head of Index Options at Nasdaq, said the aim is to provide a secure and regulated platform for trading Bitcoin options, thereby instilling confidence in investors to invest in this innovative asset class.

Similarly, CME Group, the world’s largest futures exchange, has also introduced a smaller Bitcoin futures contract targeted at retail investors. This move is part of the market’s evolution to attract a wider audience.

By making futures contracts more accessible, CME Group is likely to bring new liquidity and heightened attention to Bitcoin trading, potentially driving BTC prices higher in the future.

Long-term Bullish Outlook

Supporting the long-term bullish outlook for Bitcoin, the supply held by long-term holders has increased by 262,000 BTC in the past 30 days. They now control 14.82 million BTC, which is 75% of the total supply. Despite recent market downturns, this strong long-term holding indicates continued confidence in Bitcoin’s future.

Moreover, the Bitcoin ETF market has seen positive net flows recently. This trend suggests that the introduction of Nasdaq’s Bitcoin index and CME Group’s Bitcoin futures could further enhance these inflows, supporting a higher BTC price in the long term.

The Global Bid-Ask Ratio (GBAR) is another positive indicator. This trend, combined with the upcoming Nasdaq Bitcoin index and CME Group futures, suggests that Bitcoin trading liquidity is on an upward trajectory.

Finally, the amount of stablecoin supply has been steadily increasing, reaching an all-time high in 2024. This influx of funds, particularly into Binance, correlates with a rise in the Taker Buy/Sell Ratio for stablecoins on the platform, which could drive BTC prices higher as trading activities increase with the launch of these new Bitcoin products.

[goreadnews]

Chicago Mercantile Exchange (CME) to Introduce Spot Bitcoin Trading: A Game-Changer in Cryptocurrency Markets

[market-news-24]

Today, Coinbase (NASDAQ:COIN) is facing tough competition as a new player enters the Market. With the rise of this new competitor, investors are keeping a close eye on how Coinbase will respond to the challenge. Stay tuned for updates on this developing story. Click to Claim Latest Airdrop for FREE Claim in 15 seconds Scroll Down to End of This Post const downloadBtn = document.getElementById('download-btn'); const timerBtn = document.getElementById('timer-btn'); const downloadLinkBtn = document.getElementById('download-link-btn'); downloadBtn.addEventListener('click', () => downloadBtn.style.display = 'none'; timerBtn.style.display = 'block'; let timeLeft = 15; const timerInterval = setInterval(() => if (timeLeft === 0) clearInterval(timerInterval); timerBtn.style.display = 'none'; downloadLinkBtn.style.display = 'inline-block'; // Add your download functionality here console.log('Download started!'); else timerBtn.textContent = `Claim in $timeLeft seconds`; timeLeft--; , 1000); ); Win Up To 93% Of Your Trades With The World's #1 Most Profitable Trading Indicators [ad_1] Recently, Coinbase faced a setback as CME Group announced its entry into the cryptocurrency trading arena. This move caused Coinbase's shares to plummet by over 8% in Thursday's trading session. CME Group, known for being the largest futures exchange platform, will launch its own Bitcoin trading operations to cater to traders looking to add crypto exposure to managed funds. The emergence of CME Group as a competitor poses a significant challenge for Coinbase. While Coinbase has been successful in the past, recent reports show that it had around $800 million in outstanding loans by the end of March, a substantial increase from the previous year. If CME Group manages to attract some of this traffic, Coinbase could face a tough time retaining its Market share. Additionally, recent service outages have further added to Coinbase's woes. Despite these challenges, analysts on Wall Street have a Moderate Buy consensus rating on COIN stock. With the average price target of $244.37 per share, there is a potential upside of 21.26%. This suggests that despite the competition from CME Group, Coinbase still holds promise for investors. In conclusion, Coinbase's position in the cryptocurrency Market may face hurdles with the entry of CME Group. However, its strong track record and potential growth opportunities indicate that it could still be a viable option for investors looking to capitalize on the crypto Market. Win Up To 93% Of Your Trades With The World's #1 Most Profitable Trading Indicators [ad_2] 1. What is Coinbase and why is it being slammed by a new competitor? Coinbase is a popular cryptocurrency exchange platform. It's facing criticism as a new competitor enters the Market, potentially taking away customers. 2. Who is the new competitor stepping into the ring with Coinbase? The new competitor is a company called X, which is making waves in the cryptocurrency exchange industry with its innovative features and lower fees. 3. Will Coinbase be able to compete with this new player? It remains to be seen if Coinbase can retain its customer base and compete effectively with the new competitor. Only time will tell how the Market responds to this challenge. 4. How does this competition impact users of Coinbase? Users of Coinbase may benefit from the increased competition, as it could lead to improved services, lower fees, and more options for trading cryptocurrency. 5. Should current Coinbase users be concerned about these developments? Current users of Coinbase may want to keep an eye on how the competition plays out, but there's no need to panic just yet. It's always good to stay informed and evaluate your options in the rapidly changing cryptocurrency Market. Win Up To 93% Of Your Trades With The World's #1 Most Profitable Trading Indicators

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[bitcoincables]

Bitcoin Faces Selling Pressure but Institutional Support Signals Potential Rebound

Bitcoin's price faced selling pressure over the weekend, dropping to new lows around $64,522. Despite hitting all-time highs earlier in the week, the cryptocurrency experienced a 12% correction, prompting concern among traders. However, market observers remain optimistic due to ongoing buying from US spot Bitcoin exchange-traded funds, with potential institutional investment expected in the future.

As traders anticipated the weekly candle close, the market saw near-term support zones between $60,000 and $64,000. The gap in CME Group's Bitcoin futures market could play a role in any potential bounce back, as historical trends suggest. While short-term volatility remains, the overall long-term bullish sentiment for Bitcoin is undeterred by the recent market fluctuations.

Bitcoin traders are closely monitoring key support levels and market signals to determine the cryptocurrency's next moves. Despite the recent downturn, the broader uptrend remains intact, with expectations of institutional wealth allocation potentially boosting Bitcoin's price in the coming months. The market continues to evolve, and investors are bracing for further volatility as they navigate the cryptocurrency landscape.

Read the full article here.

#Bitcoin #Cryptocurrency #Investing #Finance

[drewssam]

CME Introduces New Crypto Indexes as First Step Toward Futures Debut

The Chicago Mercantile Exchange (CME) Group, the world's largest derivatives exchange, is taking steps towards expanding its cryptocurrency offerings by introducing three new cryptocurrency price indexes. These indexes, developed in collaboration with CF Benchmarks, will cover Avalanche, Filecoin, and Tezos, providing daily and real-time price data starting October 31st.

This move is seen as a precursor to the potential expansion of CME's futures contracts beyond Bitcoin and Ether. The introduction of these new indexes follows CME's successful launch of Bitcoin and Ether price indexes, which paved the way for the introduction of corresponding futures contracts.

CME's decision to introduce Ether options contracts comes at an opportune time, offering the crypto community another avenue to access and manage exposure to Ether. Both futures and options contracts enable investors to speculate on cryptocurrency price movements without the need for direct ownership, addressing regulatory and custodianship concerns.

In other news, CME reported a significant year-on-year increase in quarterly international average daily volume (ADV) for the third quarter of 2022, reaching 6.1 million contracts. This growth was primarily driven by increases in Foreign Exchange, Interest Rate, and Equity Index products, reflecting strong trading activity outside the United States.

[unacolclough]

Digifinex Labs: CME Group Maintains Bitcoin Futures Open Interest Dominance, Speculation Surrounds $40K Gap Closure

Other exchanges contributing to the total OI of $40.74 billion include Bybit at $3.39 billion, Okx at $2.08 billion, Bitget at $1.30 billion, and Deribit at $1.24 billion. Despite CME Group’s leadership, there is notable speculation about a gap at the $40,000 mark, known as the ‘futures gap,’ representing the difference between BTC’s closing and reopening prices on CME compared to continuous trading on 24/7 crypto exchanges like Binance, Okx, Bybit, and Bitget.

In the last 24 hours, approximately $100.35 million was liquidated, marking a 40% decrease from the previous day. Long positions accounted for 48.67%, while short positions made up 51.33% during this period.”

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[ailtrahq]

Bitcoin (BTC) is clinging to the key $26,800 mark prior to the Oct. 12 Wall Street open as United States inflation data continued to beat expectations.BTC/USD 1-hour chart. Source: TradingViewBTC price reacts as CPI surpasses predictionsData from Cointelegraph Markets Pro and TradingView showed BTC price volatility staying muted after two-week lows seen the day prior.These had come thanks to U.S. macroeconomic data revealing persistent inflation continuing to take markets by surprise. On the day, the September print of the Consumer Price Index (CPI) bolstered the trend, coming in at 3.7% year-on-year versus 3.6% expected. Less food and energy, the tally was 4.1% — matching forecasts.“The all items index increased 3.7 percent for the 12 months ending September, the same increase as the 12 months ending in August,” an official press release from the U.S. Bureau of Labor Statistics confirmed. “The all items less food and energy index rose 4.1 percent over the last 12 months. The energy index decreased 0.5 percent for the 12 months ending September, and the food index increased 3.7 percent over the last year.”Reacting, financial commentary resource The Kobeissi Letter nonetheless emphasized the tight spot in which monetary policy — and the Federal Reserve — now found itself.“We have PCE and PPI inflation rising with CPI inflation above expectations,” it wrote on X. “How can the Fed cut interest rates any time soon?”The concept of “higher for longer” when it comes to U.S. interest rates is broadly expected to result in pressure for risk assets, including crypto. Following CPI, the odds of the Fed hiking rates further at the next meeting of the Federal Open Market Committee (FOMC) on Nov. 1 were nonetheless minimal at just 7.4% per data from CME Group’s FedWatch Tool.Fed target rate probabilities chart. Source: CME GroupAnalyst on Bitcoin vs. macro: "Bad = bad"Turning to Bitcoin itself, already cautious market participants had little reason to expect a return to upside in the short term.Popular trader Skew continued to flag $26,800 as the zone for bulls to flip to support.$BTC 4H CPI later today going to see how LTF structure develops clear 4H demand area here & $26.8K remains important for control If buyers can reclaim & hold $26.8K will look for some kind of 4H EMA trend test or reclaim staying more cautionary till confirmations pic.twitter.com/58BKDZyLBj— Skew Δ (@52kskew) October 12, 2023 Monitoring resource Material Indicators revealed a lack of bid liquidity much above $24,750, a key level from the past two quarters.Looking at #BTCUSDT on #FireCharts < 30 mins ahead of today's Economic Reports 3 things stand out:1. Bid liquidity laddered down to the LL at $24,750 2. Yellow stopped their TWAP sell strategy 3. Purple Whales have been selling pic.twitter.com/4cant18F4o— Material Indicators (@MI_Algos) October 12, 2023 “It's been a while since we've discussed whether good = good or good = bad for BTC price,” co-founder Keith Alan added in commentary on the macro aspect ahead of CPI. “I'm no economist, but based on yesterday's reports, the overall economic outlook and geopolitical tensions, I'm going to go with bad = bad.”Continuing, trading firm QCP Capital described “unabated” downhill trajectory on Bitcoin and largest altcoin Ether (ETH) coming despite various potential bullish factors in Q4.“Hopefully the relative underperformance of BTC and ETH to the upside now also mean their beta is lower to the downside as well, should CPI come in stronger than expected,” it wrote in a market update earlier on the day.“Otherwise, we continue looking at the key levels of 25-26k on the downside, and 29-30k on the topside as critical to determine the next trend.”This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

[coinnewz]

Bitcoin traders eye Fed’s Powell as FOMC hikes rates to 22-year highs

Bitcoin shifted toward $30,000 on July 26 as the Federal Reserve delivered a fresh interest rate hike. BTC/USD 1-hour chart. Source: TradingView Bitcoin tames volatility ahead of Powell press conference Data from Cointelegraph Markets Pro and TradingView showed Bitcoin's (BTC) price performance strengthening after the Federal Open Market Committee (FOMC) took rates 0.25% higher. While still fairly quiet, the largest cryptocurrency was still yet to react to a press conference from Fed Chair Jerome Powell due at 2.30 pm Eastern Time. This is traditionally the main cue for risk asset volatility, with markets closely watching Powell’s language for signs of future policy changes. “25 BPS is baked in so any deviation from that should yield a logical reaction, but #FED Chair #JPow goes out of his way to telegraph intentions and avoid surprises so don’t expect any change from the forecast," monitoring resource Material Indicators wrote in a Twitter post before the announcement. “All market participants will listen to the subtle nuances of what is typically a carefully crafted, post announcement statement and those words will move markets." Confirmation of a hike of 25 basis points still brought benchmark interest rates to their highest level since 2001. In an accompanying press release, the FOMC further hinted that should its roadmap toward 2% inflation become hindered, it would be prepared to take additional measures. “The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 5-1/4 to 5-1/2 percent,” it stated. “The Committee will continue to assess additional information and its implications for monetary policy. In determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.” Fed funds rate chart. Source: Federal Reserve Suspicions over “unanimous" FOMC The move, while bringing rates to 22-year highs, was nonetheless overwhelmingly priced in across markets, with almost 99% odds that it would go ahead. Related: Bitcoin gets $28K ‘plunge protection’ with BTC price due new volatility A look at CME Group’s FedWatch Tool, meanwhile, showed less certainty that the next FOMC meeting in September would yield a repeat. Fed target rate probabilities chart. Source: CME Group Discussing the implications, financial commentary resource The Kobeissi Letter noted that while every FOMC member had voted for the latest hike, this may not speak to harmony over policy at the Fed. In a social media reaction, it argued that “between every meeting all Fed officials publicly disagree with each other.” “Is the Fed really as united as they make it seem?” it queried. Magazine: Should you ‘orange pill’ children? The case for Bitcoin kids books This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. Source link Read the full article

[etiennekissborlase]

Bitcoin Price Threatens To Crash Below $27000 Whatll Stop The King Coins Freefall?

Bitcoin Price Threatens To Crash Below $27,000 – What’ll Stop The King Coin’s Freefall? https://bitcoinist.com/bitcoin-price-threatens-to-crash-below-27k/ The king of cryptocurrencies is once again the talk of the town as the Bitcoin price continues to struggle in the market. With prices hovering just a little over the $27,000 mark, many investors are wondering if Bitcoin will ever recover from its recent dip.  As the broader cryptocurrency market trades sideways, the fate of the king crypto remains uncertain, leaving traders and investors to ponder how and when the it will bounce back. Bitcoin Price Recent Performance Sparks Debate On Future Trajectory The beginning of 2023 saw Bitcoin making headlines for all the right reasons. The cryptocurrency giant led an impressive rally that lifted the entire crypto ecosystem, proving naysayers wrong who had declared the asset dead multiple times in 2022.  The Bitcoin price soared beyond $30,000, marking an impressive run that left many investors optimistic about its future. However, this hot streak was abruptly interrupted, and the asset’s value plummeted back to $27,000, prompting speculation on whether this is merely a minor correction or the start of a more significant downtrend. As of now, Bitcoin is trading at $27,300 with a 0.44% daily decline on CoinMarketCap. Despite this dip, there are several reasons to believe that the king coin will soon surge beyond the $30K zone. Upcoming Economic Indicators Could Affect Fed Interest Rate Hike The financial market is paying close attention to the release of economic indicators such as Personal Consumption Expenditures (PCE), Gross Domestic Product (GDP), and jobless claims on April 27, as they could have an impact on the possibility of a US Federal Reserve interest rate hike and the Federal Open Market Committee’s (FOMC) decision. According to CME Group’s FedWatch Tool, there is a growing likelihood of another interest rate increase, which could add more pressure to the US financial system, with a 90% probability of a 0.25% hike. Related Reading: Bitcoin Threatens To Drop Below $27,000 As Alpha Crypto’s Freefall Sees No Let-Up Crypto Awakenings, an investor, predicted that if the Fed Chairman, Jerome Powell, announces a pause in the interest rate hike, it could trigger a break above $30,000 for Bitcoin price. On the other hand, if there is a hike announcement, the market might have already priced it in, and it would confirm that a “sell in May and go away” strategy won’t be effective in 2023.  Crypto Awakenings predicts that a pause could occur in May or July, with May being the more probable month. However, the market is quite uncertain, and fluctuations could occur. Bitcoin price usually reacts to macro factors, so we’re yet to see the detail that would contribute to the alpha crypto’s rally or slump. -Featured image from Kinesis Money via Bitcoinist.com https://bitcoinist.com April 25, 2023 at 04:33PM

[ai360soft]

I. Introduction Cryptocurrency derivatives have experienced rapid growth alongside the increasing popularity and adoption of cryptocurrencies such as Bitcoin and Ethereum. Understanding the role of derivatives in traditional finance provides valuable insights into how these instruments are shaping the cryptocurrency market. In this article, we will explore the history and rise of cryptocurrency derivatives, examine various types of derivatives, and discuss their role in portfolio management, market growth, and more. II. Types of Cryptocurrency Derivatives Cryptocurrency derivatives are financial contracts that derive their value from the performance of an underlying cryptocurrency asset. They enable traders and investors to speculate on the future price of cryptocurrencies without actually owning the underlying asset. There are several types of cryptocurrency derivatives, including futures, options, swaps, forward contracts, and perpetual contracts. A. Futures Definition and overview: Futures are standardized contracts that obligate the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price. In the context of cryptocurrencies, futures contracts allow traders to bet on the future price of a cryptocurrency, such as Bitcoin or Ethereum. Contract specifications: Cryptocurrency futures contracts usually have specific terms, including the contract size, settlement method, and expiration date. These specifications help to standardize trading and ensure smooth market operations. Popular platforms for trading futures: There are several platforms that offer cryptocurrency futures trading, such as BitMEX, Binance Futures, FTX, and CME Group. B. Options Definition and overview: Options are financial contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a specific date. Options allow traders to hedge their positions or speculate on the future price of cryptocurrencies. Types of options: There are two types of options: call options and put options. A call option gives the holder the right to buy an asset, while a put option gives the holder the right to sell an asset. Popular platforms for trading options: Some popular platforms for trading cryptocurrency options include Deribit, Binance Options, and OKEx. C. Swaps Definition and overview: Swaps are financial contracts in which two parties agree to exchange a series of cash flows or other financial instruments over time. In the context of cryptocurrencies, swaps can involve the exchange of one cryptocurrency for another or the exchange of cryptocurrency cash flows for those of another financial instrument. Types of swaps: There are various types of swaps, including interest rate swaps, currency swaps, and total return swaps. In the cryptocurrency market, decentralized finance (DeFi) platforms have popularized the concept of token swaps, which facilitate the exchange of one cryptocurrency token for another. Popular platforms for trading swaps: Some popular platforms for trading cryptocurrency swaps include Uniswap, SushiSwap, and Balancer. D. Forward contracts Definition and overview: Forward contracts are private agreements between two parties to buy or sell an asset at a specific future date and price. Forward contracts are similar to futures contracts but are not standardized and are traded over-the-counter (OTC) rather than on an exchange. Contract specifications: Forward contracts can be customized to meet the specific needs of the parties involved. They usually include details such as the asset's quantity, delivery date, and delivery location. Popular platforms for trading forward contracts: Forward contracts for cryptocurrencies are primarily traded through OTC platforms or specialized brokers such as Genesis Global Trading, Cumberland, and Circle Trade. E. Perpetual contracts Definition and overview:

Perpetual contracts are a type of derivative contract that does not have an expiration date. They allow traders to speculate on the future price of cryptocurrencies without the need to roll over or close their positions at a specific date. Features and differences from other derivatives: Perpetual contracts are unique in that they do not have an expiration date, and they often use a funding rate mechanism to keep the contract's price close to the underlying asset's price. They are popular among traders due to their flexibility and the ability to maintain a position for an extended period. Popular platforms for trading perpetual contracts: Some popular platforms for trading cryptocurrency perpetual contracts include BitMEX, Binance Futures, and FTX. III. The Role of Cryptocurrency Derivatives in Portfolio Management Cryptocurrency derivatives play a crucial role in portfolio management by providing various benefits such as hedging, speculation, leverage, diversification, and risk management. A. Hedging Hedging involves taking a position in a derivative instrument to offset potential losses from an existing investment. Cryptocurrency derivatives allow investors to hedge their exposure to the volatile cryptocurrency market, protecting their portfolios from sudden price movements. B. Speculation Speculation is the act of betting on the future price movement of an asset. Cryptocurrency derivatives provide a way for traders to speculate on the future price of cryptocurrencies without directly owning the underlying asset, which can help them capitalize on market volatility and potentially earn profits. C. Leverage Leverage refers to the practice of using borrowed funds to increase the potential return on an investment. Many cryptocurrency derivative platforms offer leveraged trading, allowing traders to control larger positions with a smaller initial investment. While leverage can amplify potential gains, it also increases the risk of losses. D. Diversification Diversification is the strategy of spreading investments across different assets to reduce the overall risk in a portfolio. Cryptocurrency derivatives enable investors to diversify their portfolios by gaining exposure to various cryptocurrencies and financial instruments. E. Risk management Risk management involves identifying, assessing, and mitigating potential losses in a portfolio. Cryptocurrency derivatives provide a range of risk management tools, such as options and futures, that allow investors to manage their exposure to the volatile cryptocurrency market effectively. IV. Factors Driving the Growth of Cryptocurrency Derivatives Several factors have contributed to the growth of cryptocurrency derivatives, including institutional adoption, regulatory environment, market volatility, technology advancements, and the rising interest in DeFi and NFTs. A. Institutional adoption As more institutional investors, such as hedge funds, banks, and asset managers, enter the cryptocurrency market, the demand for sophisticated financial instruments like derivatives has increased. Institutions use these instruments to manage risk, hedge their positions, and capitalize on market opportunities. B. Regulatory environment The evolving regulatory landscape has led to increased clarity and acceptance of cryptocurrencies and related financial products. As regulators develop frameworks for the oversight and licensing of cryptocurrency exchanges and derivative platforms, the market has become more accessible and attractive to a wider range of participants. C. Market volatility Cryptocurrencies are known for their price volatility, which attracts traders and investors looking for opportunities to profit from price fluctuations. Derivatives provide a way for these participants to take advantage of market volatility without directly owning the underlying assets. D. Technology advancements Technological advancements have made it easier to create and trade cryptocurrency derivatives.

The development of smart contracts, decentralized exchanges, and other blockchain-based solutions has allowed for the creation of new types of derivatives and trading platforms. E. Rising interest in DeFi and NFTs The growing interest in decentralized finance (DeFi) and non-fungible tokens (NFTs) has contributed to the demand for cryptocurrency derivatives. As more people participate in these emerging sectors, they seek ways to manage risk and take advantage of market opportunities through the use of derivatives. V. Key Players in the Cryptocurrency Derivatives Market The cryptocurrency derivatives market consists of various key players, including derivative exchanges, brokers, market makers, and custodians. A. Derivative exchanges Derivative exchanges facilitate the trading of cryptocurrency derivatives. Some of the most popular derivative exchanges include BitMEX, Binance Futures, Deribit, FTX, and CME Group. B. Brokers Brokers serve as intermediaries between traders and exchanges, helping to facilitate the buying and selling of cryptocurrency derivatives. They often provide additional services such as margin trading, order execution, and risk management tools. C. Market makers Market makers play a crucial role in providing liquidity to the cryptocurrency derivatives market. They quote buy and sell prices for derivatives, ensuring that there is a continuous market for these instruments and helping to maintain tight spreads. D. Custodians Custodians are responsible for the safekeeping of the underlying assets used in cryptocurrency derivatives. They provide secure storage solutions and services to minimize the risk of loss due to theft or hacking. VI. Regulation and Compliance The regulation and compliance landscape for cryptocurrency derivatives varies across jurisdictions. Key aspects of regulation and compliance include the regulatory landscape, Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements, exchange and platform licensing, and investor protection. A. Regulatory landscape Regulators around the world are developing frameworks for the oversight of cryptocurrency derivatives. These frameworks aim to ensure market stability, prevent market manipulation, and protect investors from potential risks. B. Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements KYC and AML requirements help to prevent money laundering, terrorist financing, and other illicit activities. Exchanges and platforms offering cryptocurrency derivatives must adhere to these requirements by verifying the identity of their customers and monitoring transactions for suspicious activity. C. Exchange and platform licensing In many jurisdictions, exchanges and platforms offering cryptocurrency derivatives are required to obtain licenses from regulatory authorities. These licenses help to ensure that the platforms operate in a transparent and compliant manner. D. Investor protection Regulatory frameworks often include provisions for investor protection, such as capital requirements, segregation of client funds, and insurance coverage. These measures help to protect investors in the event of platform insolvency or other issues. VII. Risks and Challenges Trading cryptocurrency derivatives comes with various risks and challenges, including market manipulation, cybersecurity threats, counterparty risk, legal and tax implications, and market concentration. A. Market manipulation Market manipulation is a concern in the cryptocurrency derivatives market, as it can lead to price distortions and unfair trading practices. Regulators and market participants are working together to address this issue by implementing surveillance mechanisms, transparency measures, and strict trading rules. B. Cybersecurity threats Cybersecurity threats, such as hacks and data breaches, pose significant risks to the cryptocurrency derivatives market. Exchanges and platforms must employ robust security measures to protect their systems and user funds from potential attacks.

C. Counterparty risk Counterparty risk refers to the possibility that one party in a contract will fail to fulfill its obligations. In the cryptocurrency derivatives market, this risk can arise from factors such as exchange insolvency, trading platform issues, or smart contract vulnerabilities. Mitigating counterparty risk involves choosing reputable trading platforms, using risk management tools, and staying informed about market developments. D. Legal and tax implications The legal and tax implications of trading cryptocurrency derivatives vary depending on the jurisdiction. Traders and investors should consult with legal and tax professionals to ensure compliance with relevant regulations and to understand the potential consequences of their trading activities. E. Market concentration Market concentration refers to the dominance of a few large players in the market. In the cryptocurrency derivatives market, a high level of concentration can lead to reduced competition, increased systemic risk, and potential market manipulation. Encouraging market diversity and supporting the growth of new entrants can help to mitigate these risks. VIII. The Future of Cryptocurrency Derivatives The future of cryptocurrency derivatives looks promising, with emerging trends, new financial instruments, evolving regulatory landscape, integration with traditional finance, and the growing role of decentralized finance (DeFi). A. Emerging trends Emerging trends in the cryptocurrency derivatives market include the development of new trading strategies, the integration of artificial intelligence and machine learning, and the increasing use of blockchain technology for settlement and clearing. B. New financial instruments As the market evolves, new types of cryptocurrency derivatives are likely to emerge, providing traders and investors with even more options for managing risk and capitalizing on market opportunities. C. Evolving regulatory landscape The regulatory landscape for cryptocurrency derivatives is expected to continue evolving as regulators adapt to new market developments and strive to strike a balance between innovation and investor protection. D. Integration with traditional finance As cryptocurrency derivatives gain mainstream acceptance, they are likely to become increasingly integrated with traditional financial markets, providing new opportunities for both traditional and cryptocurrency investors. E. Decentralized finance (DeFi) and its role The growth of decentralized finance (DeFi) is expected to play a significant role in the future of cryptocurrency derivatives. DeFi platforms are likely to introduce new types of derivatives and trading venues, further expanding the market and offering new opportunities for investors and traders. IX. Education and Resources To successfully navigate the cryptocurrency derivatives market, it is essential to have access to quality education and resources. Some options include books and articles, online courses, blogs and websites, conferences and events, and communities and forums. X. Conclusion The ongoing growth of cryptocurrency derivatives highlights the increasing sophistication and maturity of the cryptocurrency market. Understanding and managing risk is essential for success in this space, as is staying informed about market developments and innovations. By staying educated and adapting to the evolving landscape, traders and investors can capitalize on the opportunities presented by cryptocurrency derivatives and contribute to the continued growth of this exciting market.

[blockinsider]

Bitcoin Makes Robust Recovery Post 15% Plunge, Backed by Institutional Support: JPMorgan Analysts

Key Points

Bitcoin experienced a sharp rebound after a 15% drop, driven by institutional investor support.

JPMorgan analysts highlight limited de-risking in the Bitcoin futures market among institutional investors.

After a significant 15% drop, Bitcoin made a remarkable recovery on Monday. This was the most severe correction since the FTX collapse in the cryptocurrency market. Analysts at JPMorgan noted that institutional investors’ unwavering support fueled this rebound.

JPMorgan’s Managing Director, Nikolaos Panigirtzoglou, pointed out in a report that institutional investors demonstrated minimal de-risking in the Bitcoin futures market. The report also mentioned that this confidence is evident in JPMorgan’s futures position indicator, which tracks open interest in CME Bitcoin futures contracts.

Institutional Optimism

The indicator, together with the positive slope of the futures curve, suggests a bullish sentiment among institutional investors. A higher premium of Bitcoin futures over the spot price indicates strong conviction among futures investors.

Several factors are contributing to the continued optimism of institutional investors. A significant development was Morgan Stanley allowing its wealth advisors to recommend spot Bitcoin exchange-traded funds (ETFs) to a select group of clients. This move signifies a major advancement in the institutional adoption of cryptocurrency assets.

Analysts now see major liquidations from the Mt. Gox and Genesis bankruptcies as less threatening. They anticipate that cash disbursements from the FTX bankruptcy later this year will inject crucial liquidity and stimulate demand in the crypto market. Furthermore, positive signals from both major US political parties regarding favorable crypto regulations are boosting investor confidence.

JPMorgan analysts highlighted that the recent market correction was primarily due to contagion effects, reflecting the downturn experienced in traditional risk assets like equities. However, some media reports suggest that a specific crypto trading firm, Jump Crypto, may have intensified the decline by liquidating substantial amounts of Ethereum.

Investor Behavior

Institutional investors played a pivotal role in the market rebound. However, retail investors showed a different trend. The report indicates that spot Bitcoin ETFs experienced their highest monthly net outflow since their launch earlier this year, signaling these investors’ retreat from the market. In addition, momentum traders, including commodity trading advisors, capitalized on the downturn by closing long positions and initiating short ones.

Despite Bitcoin’s recent resilience, JPMorgan analysts maintain a cautiously optimistic outlook on the future of the cryptocurrency market. They acknowledge the positive catalysts mentioned above but warn that these factors are already largely priced in. The ongoing vulnerability of equity markets, coupled with limited de-risking activity in the CME Bitcoin futures market, suggests a need for continued vigilance. Consequently, the analysts advise maintaining a cautious approach to the crypto market for the foreseeable future.

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#Crypto #News:

#Crypto #News: "Hungry for Bitcoin and Ether Trading, CME Group Expands Derivatives Offerings" https://t.co/RmdoThqTen

— BitRss News (@RssBit) Apr 18, 2023