Connect with us

Blockchain

Crypto Derivatives Volumes Rise to Record $712 Billion in August

The bulk of derivative trading happened on exchanges considered by Cryptocompare as Top-Tier.

Republished by Plato

Published

on

Crypto trading volumes experienced a historic surge in activity last month as crypto-based derivative products hit all-time highs in August, according to a new report by Cryptocompare.

CryptoCompare today published its monthly Exchange Review which offers widely-quoted insights into the cryptocurrency exchange industry as well as changes to exchanges’ metrics that make up the data provider’s price indices.

The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation

Key findings from the August review show that volume on crypto derivatives exchanges rose by 58 percent compared to the previous month. In August, monthly volume hit $712 billion, which was just enough to top the previous record of $602 billion set back in May 2020.

The bulk of derivative trading happened on exchanges considered by Cryptocompare as Top-Tier.

“Huobi (up 44.7 percent), OKEx (up 69.1 percent) and Binance (up 74.0 percent) led with $208.5bn, $190.8bn and $184.6 billion traded respectively. BitMEX traded $72.5bn (up 43.6 percent) in August,” explains the London-based data analytics firm.

Crypto spot volumes also by 50 percent to $945 billion in August. This figure includes $529 billion exchanges exchanged hands at top venues —which account for over 64 percent of all volume— such as Binance ($124.9 billion, up 83 percent). This was followed by Huobi Global trading $65.0 billion (up 176 percent), while OKEx traded $64.7 billion (up 47 percent).

Suggested articles

Elections and Markets: An Unbreakable BondGo to article >>

Options volumes on CME also rise

Spot volumes at what CryptoCompare calls “Lower-Tier” exchanges also soared to $291 billion, up 30 percent over a monthly basis, possibly driven by the hype that accompanied Bitcoin’s rally to $12,000.

In August, derivatives share of the cryptocurrency market rose to just over 40 percent while spot volumes continue to represent the majority (60 percent) of total market turnover.

Trading of options contracts on the Chicago Mercantile Exchange, which focuses on institutional investors, increased 8.4 percent in August with 2,704 contracts were traded within the month.

This figure was, however, three times lower than the record monthly high set in June at 8,444 contracts. The regulated exchange said futures volumes, as measured by the number of contracts, jumped 36 percent from July levels to reach 203,867 in August, with trading volume also up 55 percent to $12.0 billion.

As for previous editions, CryptoCompare report includes exchange trade data, news highlights, a market segmentation analysis and metrics of Bitcoin trades against both fiat and stablecoins.

“BTC trading into USDT increased 16 percent in August to 6.25mn BTC vs 5.41mn BTC in July. Trading into USD and JPY also increased to 1.28mn BTC (up 21 percent) and 1.12mn BTC (up 26 percent) respectively. EUR markets increased 10 percent, while BTC trading into KRW increased 23 percent. Stablecoin markets BTC/USDC and BTC/PAX traded 72.0k BTC (up 8 percent) and 24.1k BTC (up 29 percent) respectively in August,” CryptoCompare concluded.

Source: https://www.financemagnates.com/cryptocurrency/news/crypto-derivatives-volumes-rise-to-record-712-billion-in-august/

Blockchain

TA: Bitcoin Price Back Below 100 SMA, Why BTC Could Retest $45K

Republished by Plato

Published

on

Bitcoin price failed to stay above $50,000 and $49,000 against the US Dollar. BTC is now below the 100 hourly SMA and it is likely to continue lower towards $45,000

  • Bitcoin started a fresh decline below the $50,000 and $49,000 support levels.
  • The price is now trading well below $50,000 and the 100 hourly simple moving average.
  • There is a connecting bearish trend line forming with resistance near $49,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could extend its decline towards $45,000 as long as it is below $50,000.

Bitcoin Price Turns Red

After forming a short-term top near the $52,600 level, bitcoin started a fresh decline. BTC traded below the $51,200 and $50,000 support levels to move back into a negative zone.

There was also a break below a major bullish trend line with support near $49,500 on the hourly chart of the BTC/USD pair. The pair even broke the $48,000 support level. There was a clear break below the 50% Fib retracement level of the upward wave from the $43,050 swing low to $52,650 high.

It is now trading well below $50,000 and the 100 hourly simple moving average. It seems like the bulls are trying to protect the 61.8% Fib retracement level of the upward wave from the $43,050 swing low to $52,650 high.

Bitcoin Price

Source: BTCUSD on TradingView.com

If they fail and the price trades below $46,500, there are chances of more losses. The next key support is near the $45,000 level, below which the bears might aim a test of the $43,000 support zone.

Fresh Increase in BTC?

If bitcoin stays above $46,500, it could correct higher. An initial resistance on the upside is near the $48,000 level. The first major resistance is near the $49,000 level and the 100 hourly simple moving average.

There is also a connecting bearish trend line forming with resistance near $49,000 on the same chart. To move into a positive zone, the price must clear the trend line resistance and then gain pace above the $50,000 barrier.

Technical indicators:

Hourly MACD – The MACD is now gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.

Major Support Levels – $46,500, followed by $45,000.

Major Resistance Levels – $48,000, $49,000 and $50,000.

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://www.newsbtc.com/analysis/btc/bitcoin-btc-could-retest-45k/

Continue Reading

Blockchain

Analyst tells Tesla to dump Bitcoin for buybacks as shares plunge alongside MSTR’s

Republished by Plato

Published

on

A former equities CIO of Goldman Sachs drew an strong response on Twitter after suggesting Tesla should sell its Bitcoin and buy back company shares.

The price of TSLA shares have fallen 28% from $863.42 to $621.44, since news broke on Feb. 8 that Tesla had made a $1.5 billion BTC acquisition.

MicroStrategy’s shares have fared even worse in the short term. The company, which is headed by Bitcoin bull Michael Saylor and just completed its latest acquisition of $15 million in BTC on Mar. 3, is now down 50% from its all-time high of $1,315 from Feb. 9.

Tesla’s share market woes are likely due to a number of factors. In early February, it was reported that Tesla had been reprimanded by the Chinese government over quality control issues after receiving consumer complaints. The broader stock market has also experienced volatility, with the S&P 500 down 4.1% in the last 30 days. 

But the tweet from longtime Tesla analyst Gary Black, who has several decades of financial management experience, sparked a debate on whether Tesla’s purchase of $1.5 billion in Bitcoin last month had benefited investors.

“I don’t want them buying back stock,” said Twitter user Techgnostik. “I want them investing in growth, and making another billion on their BTC position.”

Black countered by suggesting TSLA would also draw inclusion by more fund managers with a share buyback program, considering it of greater value to the investor than buying BTC “with excess cash.”

Some users on Twitter agreed that a stock buyback seemed to be a more appropriate use of funds, while others felt too much attention was being paid to what Tesla did with 8% of their cash reserves.

It’s not easy to ascertain the impact buying Bitcoin has had on a company’s bottom line. While MicroStrategy’s share price has halved in a month, shares of MSTR are still up 340%, (from $146.63 to $645.66), since the company announced its first purchase of 21,454 BTC on Aug. 11, 2020. The price of BTC is currently up 310% from the same date.

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://cointelegraph.com/news/analyst-tells-tesla-to-dump-bitcoin-for-buybacks-as-shares-plunge-alongside-mstr-s

Continue Reading

Blockchain

Experts divided on BTC predictions: Bullish or super bullish?

Republished by Plato

Published

on

Despite the current battle between Bitcoin bulls and bears around the $50,000 price mark — and an 8.7% pullback over the past 24 hours — a raft of analysts and commentators have got out their crystal balls to tip a glittering future for Bitcoin prices.

On Mar. 4, Senior Commodity Strategist for Bloomberg Intelligence Mike McGlone pointed to historical data to suggest that Bitcoin is on the way to $100,000.

McGlone’s logic revolves around the growing discount for shares in the Grayscale Bitcoin Trust which is at the same level as last year’s Black Thursday collapse. The discount refers to when shares in the Grayscale Bitcoin Trust trade for less than the value of the underlying Bitcoin (normally they trade at a premium).

Looking at historical data, said that

Twitter user “Lee Hendricks” wasn’t convinced, suggesting the catalyst for Grayscale’s discount could be the result of pressure from upcoming ETFs and other crypto funds. (Although that’s arguably bullish too.)

The Bloomberg strategist isn’t the only expert with high expectations for BTC, with influencer and YouTuber Lark Davis stating on Mar. 4 that “we are just now past the first major price wave,” with two more, larger waves to come.

On March 2, technical analyst Kaleo posted a chart predicting BTC will hit $100,000 near the start of April this year.

It’s a follow-up on his “Bitcoin Halving Reward Era Price” analysis chart two years ago predicting the price would reach $200,000 around mid-2021. He tweeted two weeks ago that he still has faith in it:

“It is by far the most accurate, long-term chart prediction I’ve ever seen for Bitcoin… $BTC will hit $200K+ this cycle.”

Another analyst who goes by the Twitter name MasterChangz, told his 10,000 followers he believes Bitcoin will hit the $200,000 mark even earlier than mid-2021, potentially at the start of April. The next rise, he said, is to $77,000 over the next two weeks.

Other predictions are even bolder with Kraken CEO Jesse Powell stating the cryptocurrency could reach $1 million or even “infinity” in a Bloomberg television interview on Mar. 4, adding that it will eventually become the world’s currency.

“We can only speculate, but when you measure it in terms of dollars, you have to think it’s going to infinity,” he said. “The true believers will tell you that it’s going all the way to the moon, to Mars and eventually, will be the world’s currency.”

Kraken Head of Growth Dan Held, echoed this prediction on Mar. 5, claiming on Twitter that:

“Bitcoin is more likely to hit $1,000,000 than $0.”

Even past Bitcoin skeptics are becoming crypto converts with investment firm Sanders Morris Harris CEO George Ball admitting to Yahoo Finance on Mar. 4 that he believes cryptocurrencies are now “attractive” as a “small part” of any portfolio.

“With the cryptocurrencies, I think there is a fundamental hydra-headed shift that makes them attractive as a part, a small part, of almost any portfolio,” Ball said.

Despite this wave of optimism, history also suggests March could be a bloody month, with Bitcoin’s price falling across the month in six of the past nine years by an average of 5.8%. The most recent of these occurred last year on Black Thursday when the price plunged by 50%. That said, the second-biggest monthly candle in BTC history happened in March 2013, when the price shot up 179%.

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://cointelegraph.com/news/experts-divided-on-btc-predictions-bullish-or-super-bullish

Continue Reading
Blockchain4 days ago

Google Finance adds dedicated ‘crypto’ tab featuring Bitcoin, Ether, Litecoin

Blockchain3 days ago

Why Mark Cuban is looking forward to Ethereum’s use cases

Blockchain2 days ago

Amplifying Her Voice

Blockchain4 days ago

NBA Top Shot leads NFT explosion with $230M in sales

Blockchain4 days ago

Litecoin, Monero, Dash Price Analysis: 28 February

Blockchain5 days ago

How KuCoin Shares (KCS) Can Create a Stream of Passive Income

Blockchain2 days ago

Libra Coin – A New Digital Currency Developed by FACEBOOK

Blockchain2 days ago

Blockchain in Sports Betting

Blockchain5 days ago

Korean Government To Levy Taxes On Bitcoin Capital Gains Starting 2022

Blockchain4 days ago

Top 5 cryptocurrencies to watch this week: BTC, BNB, DOT, XEM, MIOTA

Blockchain4 days ago

Polkadot, Cosmos, Algorand Price Analysis: 28 February

Blockchain4 days ago

The Sony PlayStation 5 Game Console Mining Ethereum with almost 100 MH/s is Not True!

Blockchain1 day ago

Will Netflix soon buy bitcoin?

Blockchain2 days ago

DEX aggregator 1inch integrates Bitquery’s API-powered crypto trading data

Blockchain2 days ago

Bitcoin Halving: Definitive Guide (In Just 5 Minutes)

Blockchain5 days ago

Rewardiqa platform takes DeFi to the next level

Blockchain4 days ago

How did Bitcoin lending become so popular?

Blockchain1 day ago

3 key Ethereum price metrics show pro traders are aiming for $2K ETH

Blockchain5 days ago

Kraken Daily Market Report for February 27 2021

Blockchain2 days ago

ChiliZ To Expand Operations, Will Invest $50 Million in the US

Trending