Bitcoin Whales Switching To Risk-Off Mode After $61,000 Crash

On-chain data shows the Bitcoin whales have been dialing back risk on derivatives exchanges following the latest downturn in the cryptocurrency. Bitcoin Inter-Exchange Flow Pulse Has Just Turned Red As explained by CryptoQuant founder and CEO Ki Young Ju in a new post on X, the Bitcoin Inter-Exchange Flow Pulse is now giving a red signal. The Inter-Exchange Flow Pulse (IFP) is an indicator that tracks the BTC movements between spot and derivatives exchanges. When the value of this metric rises, the amount of cryptocurrency going from spot to derivatives platforms goes up. Such a trend implies that large entities like the whales are potentially looking to open up new positions in the derivatives market. Related Reading: Bitcoin Slips Under $64,000: Heres Where The Next Support Is On the other hand, a decline in the indicator suggests investors are transferring fewer coins to the derivatives exchanges. This trend could signal a decreasing appetite for risk positions in the sector. Now, here is a chart that shows the trend in the Bitcoin IFP, as well as its 90-day simple moving average (SMA), over the past decade: As displayed in the above graph, the Bitcoin IFP had been climbing earlier, but the metric seems to have reversed its direction recently, as it’s now heading down instead. Following the latest decline, the indicator has crossed below its 90-day SMA. Historically, the IFP observing a cross with its 90-day SMA has signified a market sentiment shift. A breakout above this line suggests the whales are willing to take risks with the asset again, which can potentially be a bullish signal. The chart shows that such a cross occurred around both the 2018 and 2022 bear market lows. On the other hand, a plunge under the 90-day SMA usually takes place near tops, as it implies the whales are looking at derivative positions as too risky. Related Reading: PEPE Has 80% Of Holders In Profit: How It Compares To DOGE & BTC As the indicator has once more seen the latter type of crossover, it’s possible that the asset could end up facing some bearish momentum. This possible shift to a bearish sentiment, however, doesn’t have to last for too long. The previous instance of the IFP dropping below its 90-day SMA in January. This crossover coincided with Bitcoin’s downturn following the spot exchange-traded fund (ETF) approval. The bearish momentum ended up only temporary, though, as the cryptocurrency soon found a breakout that led to its new all-time high (ATH). The asset observed only a temporary effect from this crossover in 2016 before catching back an uptrend into the 2017 bull run. It remains to be seen where this bearish Bitcoin IFP crossover will lead to this time. BTC Price Bitcoin hasn’t seen an end to its recent decline, as its price has now dropped to $61,200. Featured image from Dall-E, CryptoQuant.com, chart form TradingView.com

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Bitcoin Relative Open Interest Lowest Since Feb, Analyst Says Hard To Be Bearish

Data shows the Bitcoin Open Interest as a percentage of its market cap has been at lows recently, a sign the derivatives side has been healthy. Bitcoin Open Interest Is Now Less Than 2% Of The Market Cap As explained by analyst James Van Straten in a new post on X, the derivatives side of the market has looked “extremely healthy” while BTC’s latest recovery has occurred. The metric of interest here is the “Open Interest,” which keeps track of the total amount of derivatives-based Bitcoin positions that are currently open on all centralized exchanges. Related Reading: XRP Forms On-Chain Signal That Led To 16% Crash Last Time When the value of this indicator goes up, it means that the investors are opening up more positions on the market right now. Generally, the total leverage in the market rises when such a trend takes place, so the price of the asset could end up turning more volatile following it. On the other hand, a decline in the metric suggests users are either closing up their positions of their own volition or getting forcibly liquidated by their platform. The cryptocurrency may behave in a more stable manner following such a decrease. Now, here here is a chart that shows the trend in the Bitcoin Open Interest over the past few years: The value of the metric seems to have been going down in recent days | Source: @jvs_btc on X In the graph, the Open Interest is displayed as a percentage of the asset’s market cap (that is, the total valuation of the entire BTC circulating supply at the current spot price). It would appear that the indicator has registered a drawdown recently and has slipped under the 2% mark. This would suggest that the positions on the derivatives market now make up for less than 2% of the market cap. From the chart, it’s visible that the metric had earlier spiked to a high as the coin’s rally towards a new all-time high had taken place. Interestingly, the market cap was rapidly going up in this rally, but this ratio was still trending up, implying that speculation had been growing at a rate faster than the price. This may have been a sign that the derivatives side was starting to become overheated. In the drawdown that had followed the price top, the investors had started getting liquidated, leading to the ratio registering a decline. Related Reading: Crypto Analyst Says Cardano Ready For A Parabolic Bull Run, Heres Why The most recent price drop had helped reset the market further, bringing the ratio down to levels not seen since February. Bitcoin has been mounting a recovery effort in the past few days, but so far, the derivatives market has remained cool. “Hard to be bearish here,” says the analyst. It now remains to be seen if the health of the market would continue to look optimistic in the coming days, thus potentially allowing for the recovery to go a step further. BTC Price Bitcoin had returned back above $65,500 earlier, but the asset has since seen a small pullback as it’s now down to $64,100. Looks like the price of the asset has been heading up over the last few days | Source: BTCUSD on TradingView Featured image from André François McKenzie on Unsplash.com, Glassnode.com, chart from TradingView.com

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$100K to $150K Traders Target Six-Figure Heights With Long-Dated Bitcoin Call Options

Recent data reveals a significant uptick in open interest for bitcoin futures and options across various trading platforms in recent weeks. On Monday, insights from QCP Capital indicated a notable interest in long-term September and December bitcoin calls, aiming for the lofty six-figure price brackets. Confidence Soars With Bets on Bitcoin Exceeding $100K Just last [...]

The post $100K to $150K Traders Target Six-Figure Heights With Long-Dated Bitcoin Call Options appeared first on Crypto Breaking News.

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Research: Implied volatility shows only sideways movements for Bitcoin

The crypto derivatives market has grown so big in the past few years that it can be used as an indicator of future price movements.

The post Research: Implied volatility shows only sideways movements for Bitcoin appeared first on CryptoSlate.

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Lightning Speed: 5 Ways To Make Money/ Earn Sats Using The Lightning Network

Earning sats for the first time is a magical experience and NewsBTC is here to guide you through it. The Lightning Network gave bitcoin real micro-transactions with extremely low fees. That opened up new avenues for the bitcoin network to expand through, avenues that the world is just beginning to explore. In the following text, we will present five projects that pay their users or allows them to get tips from the community. In sats, using the Lightning Network. Unlike most altcoins, bitcoin is truly scarce, has a hard total cap, and wasn’t pre-mined. The rewards that the following projects offer are low compared to million-dollar NFT collections and untenable 20% yields. However, you will earn real bitcoin by exploiting your hobbies. Cross your fingers, let’s hope this first guide has something for you.  Related Reading: Lightning Speed: Open-Source Bitcoin Banks’ Fee Structures For Inbound Liquidity Before advancing, though, let’s quote Stacker News’ FAQ for a definition of sats AKA satoshis. “Sats are the smallest denomination of Bitcoin. Just like there are 100 pennies in 1 dollar, there are 100,000,000 sats in 1 Bitcoin.” 1.- Earn Sats Playing Games With Thndr Go to Thndr, download and play classic games, like Snake, or new and original ones like Turbo84 or Bitcoin Bounce. The company can’t give you sats directly because of Android App store’s restrictions. You can earn them, though. “Each ticket you collect is an entry into the daily prize draw.  The more tickets that you collect, the more chances you have to win the bitcoin jackpot.” It certainly beats playing retro video games and NOT getting paid for it. Thndr ? https://www.thndr.games/ 2.- Get Tips For Your Pictures With Starbackr Publish your pictures and videos and get rewarded by the community on Starbackr. Tips in sats might not be the ideal way to support creators, but then again, maybe they are. Let’s experiment and see what the market says. And speaking about experiments, it seems like this service is just the first stage and not Starbackr’s final form. The company’s About Us says: “We build the platform of choice for digital content creators with instant payments, low friction, and free of moral censorship. Building on the Bitcoin Lightning network allows us to deliver a content monetization platform that is dramatically less expensive, faster, and more creator-friendly.” So, don’t lose faith if you’re not a photographer. We might hear about new services from Starbackr again in the not-so-distant future. Starbackr —> https://app.starbackr.com/ BTC price chart for 09/01/2022 on Bitstamp | Source: BTC/USD on TradingView.com 3.- Get Sats For Your Content In Stacker News Stacker News is a bitcoin-focused Hacker News clone that rewards content curation and production. The way it accomplishes this is the fundamental difference between the two sites. “Rather than collecting “upvotes” that are not redeemable or transferable on Reddit or Hacker News, Stacker News users earn sats that can immediately be spent anywhere,” their FAQ says.  Each upvote or comment that your content gets rewards you with 1 sat minimum. Publishing is not free, though, it also costs 1 sat. This is one of the most evolved projects on the list, so there’s an economy around it and the team has developed new functionalities. For example, you can pay to boost your content and users can boost their upvote by rewarding more sats.  Stacker News –> https://stacker.news/ 4.- Cut Clips From Your Favorite Podcasts In Fountain Fountain is a Podcasting 2.0-enabled app that distinguished itself from the crowd by allowing users to earn sats. You can listen to sponsored content and advertisement. Alternatively, you can comment or cut clips from your favorite podcast. If users like those comments or clips, you get a cut. Plus, the satisfaction of aiding in the promotion of your favorite podcast.  Mind you, another possibility that Fountain and similar apps provide is that you can produce a podcast and get rewarded by the community under the Value-for-Value model. The barrier of entry is much higher, sure, but podcasting might be your calling.  Fountain ? https://www.fountain.fm/ 5.- Trade Derivatives In Sats Through LN Markets If technical analysis is your forte and fundamental analysis excites you, LN Markets offers an easy way to play the markets. “Trading is done directly from any Lightning wallet and enables super fast access to derivatives markets. Open a position by making a Lightning transaction, close the position and receive the money directly in your wallet,” their FAQ clarifies. Open a trading position only if you know what you’re doing, though. At least watch a few NewsBTC Daily technical analysis episodes to kickstart your learning process. Or use LN Markets in testnet, which is also possible. Whatever you do, remember that playing the markets comes with inherent risk and that even the most experienced traders suffer devastating losses. Don’t use money that you can’t afford to lose.  LN Markets ? https://lnmarkets.com/ Related Reading: Lightning Speed: Branding Opportunities On The Lightning Network, A How-To Guide Before closing, some of these services assume that you already have a Lightning Network-specific wallet. Go and learn how to set one up before interacting with them. This closes NewsBTC’s first guide to making money through the Lightning Network. If you want more content like this, tell us through NewsBTC’s social media channels. Featured Image: Bitcoin Bounce screenshot from Thndr Games | Charts by TradingView

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State Of The Bitcoin Derivative Market

The bitcoin derivatives landscape plays a major role in the bitcoin price in the short term. We have yet to see signs of a bitcoin macro bottom.

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Japan’s Largest Broker Nomura Now Offers Bitcoin Derivatives

Nomura Holdings began trading bitcoin derivative contracts this week including options and futures citing increased institutional demand.

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Bitcoin Futures Overheat With $1.5 Billion Jump As BTC Breaks $44k

On-chain data shows Bitcoin futures open interest has jumped up more than $1.5 billion in just a few hours as the crypto’s price breaks past $44k again. Bitcoin Futures Open Interest Adds More Than $1.5 Billion Within A Few Hours As pointed out by an analyst in a CryptoQuant post, the BTC open interest has shot up over the past day as the coin’s price has observed a surge. The “open interest” is an indicator that measures the total amount of Bitcoin futures contracts currently open on all derivatives exchanges. When the value of this metric is rising, it means more futures positions are opening up on exchanges. This leads to higher leverage in the market, and can result in more volatility. On the other hand, the open interest’s value going down suggests investors are closing up their positions as they pull out of the market. As leverage lowers during this trend, it can lead to lesser volatility in the price of Bitcoin. Now, here is a chart that shows the trend in the Bitcoin open interest over the past month: Looks like the value of the indicator has surged up over the past day | Source: CryptoQuant As you can see in the above graph, the BTC open interest observed a sharp rise within the last 24 hours as the coin’s price enjoyed an uptrend. Related Reading | Ethereum Will Continue To Outperform Bitcoin, Here’s The Indicator That Says So The value of the metric jumped more than $1.5 billion in just the matter of a few hours, taking the total open interest to $13.6 billion. Also, as the chart shows, there were two similar sharp spikes twice within the past thirty days where the price also saw an increase. Related Reading | Quant Explains How Stablecoin Ratio Can Give Bitcoin Buy Or Sell Signals However, not long after this trend, the price plummeted down along with the open interest. If similar trend follows this time as well, the current uplifted value of the coin may not last long before a retrace is seen. Though, there is a chance that things go differently this time. The increase in the Bitcoin open interest is much sharper than the other instances. BTC Price Yesterday, Bitcoin’s price broke past $44k for the first time since start of March. So far, the coin has maintained above this level as at the time of writing, it floats around $44.6k, up 10% in the last seven days. Over the past month, the crypto has gained 15% in value. The below chart shows the trend in the price of the coin over the last five days. The price of BTC seems to have observed some sharp uptrend over the last few days | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Bitcoin Derivatives Market Reflects Macroeconomic Uncertainty

Analyzing bitcoin derivatives data makes it clear that market participants are cautious in this period of uncertainty.

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Deribit Review: Cryptocurrency Futures & Options Trading

Deribit is a Bitcoin trading platform that enables individuals around the world to engage in futures and options trading. The team behind the project combined the first letters from the words Derivates and Bitcoin in order to create the name of their website, and members can use Bitcoin in order to make deposits, withdrawals, and [...]

The post Deribit Review: Cryptocurrency Futures & Options Trading appeared first on Blockonomi.

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The Bitcoin futures contango

As the crypto market matures, Bitcoin’s spot price is increasingly influenced by global geopolitical events, regulatory changes, traditional financial market movements, and other relevant macroeconomic events. However, the growing Bitcoin derivatives market also shapes Bitcoin’s price movements, albeit a smaller one. Futures and options contracts are particularly insightful for predicting Bitcoin’s future movements as they […]

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Bitcoin Derivatives Market Heating Up Again: Brace For Impact?

Data shows that the indicators related to the Bitcoin derivatives market have recently been heating up, which could lead to more volatility in BTC’s price. Bitcoin Open Interest & Leverage Ratio Have Shot Up As pointed out by CryptoQuant community analyst Maartunn in a new post on X, the Bitcoin Open Interest has registered a [...]

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Bitcoin CME gap drop to $78K possible due to fringe risks surrounding US economy

A Bitcoin futures CME gap below $80,000 could be filled before BTC price treks to new all-time highs in 2025.

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