CME introduces micro Ether futures as ETH nears ATH above $4,4K

November 2, 2021 Coin Telegraph

CME introduces micro Ether futures as ETH nears ATH above ,4K

Micro Ether futures will become the fourth crypto derivatives product by CME and is expected to be launched on Dec. 6.

The Chicago Mercantile Exchange (CME), one of the world’s biggest derivatives marketplaces, continues expanding its cryptocurrency derivatives offerings by adding a new Ether (ETH)-based product.

CME announced Tuesday that it is planning to launch a micro Ether futures contract, sized at 0.1 ETH, enabling a new type of Ether exposure to institutional and individual traders.

The new product will become the fourth crypto derivatives product ever launched by CME and is expected to be rolled out on Dec. 6, 2021, pending regulatory approval.

The news comes amid Ether sitting near all-time high levels after the cryptocurrency posted its highest historical price on Friday, reaching $4,460. At the time of writing, the second-largest cryptocurrency by market cap is trading at $4,438, according to data from cryptocurrency tracking website CoinGecko.

Tim McCourt, CME Group Global head of alternative investment products, noted that the launch of micro ETH futures aims to bring more investors to the market by enabling smaller investments.

“Since the launch of Ether futures in February, we have seen steady growth in liquidity in these contracts, especially among institutional traders,” McCourt noted, adding that ETH price has “more than doubled” since these contracts were introduced.

“Micro Ether futures will offer even more choice and precision in how they trade Ether futures in a transparent, regulated and efficient manner at CME Group,” he added.

Micro Ether futures will join CME Group’s growing offering of crypto derivatives, including Micro Bitcoin futures, which started trading in May 2021. With each contract worth 0.1 BTC, the company has traded over 2.7 million contracts so far. The original and the first Bitcoin futures contract by CME was launched on Dec. 17, 2017.

Bitcoin price descending channel and loss of momentum could turn $60K to resistance

October 31, 2021 Coin Telegraph

Bitcoin price descending channel and loss of momentum could turn K to resistance

bitcoin futures

After a slight hiccup in BTC futures premium, traders seem comfortable despite the $58,000 support retest and the risk of $60,000 turning to resistance.

Bitcoin (BTC) appears to lack the strength to retest the $67,000 all-time high that it reached on Oct. 20 and this is causing investors to question whether or not the bullish moment has faded. Even with the price facing these hurdles, it’s still premature to call the $58,000 support level test the beginning of a descending channel.

*Bitcoin price in USD at Coinbase. Source: TradingView*

Among the factors limiting the rally is the regulatory uncertainty in the United States. Anne Termine, a partner in the government enforcement and investigations practice at Bracewell LLP and former chief trial attorney at the Commodities Futures Trading Commission (CFTC), said that “there are no easy answers” for the agency to provide clear rules.

Increasing adoption, on the other hand, has been pressuring traditional banks to seek cryptocurrency product offerings. For example, major Russian private bank Tinkoff, owner of a large online brokerage services, is researching crypto-related investment services even though the Bank of Russia withholding such launches.

This week Coinbase exchange hit the top spot as the most downloaded app for the United Stated Apple Store, which is mind-blowing. Coinbase beat tech giants like TikTok, YouTube and Instagram and this is not a small feat. Coinbase first listed on the app store in 2014 and was the most popular download in the U.S. in 2017 and May 2021.

Pro traders stumbled but are bullish again

To determine how bullish or bearish professional traders are, one should monitor the futures premium — also known as the “basis rate.”

The indicator measures the difference between longer-term futures contracts and the current price at spot market exchanges. A 5% to 15% annualized premium is expected in healthy markets, otherwise known as contango.

This price gap is caused by participants demanding more money to withhold settlement longer, and a red alert emerges whenever this indicator fades or turns negative, known as “backwardation.”

*Bitcoin 3-month futures basis rate. Source: Laevitas.ch*

Notice how the sharp decrease caused by the $58,000 resistance test on Oct. 27 caused the annualized futures premium to reach its lowest level in three weeks. Still, the indicator recovered nicely to the current 17%, signaling a moderate bullishness.

To confirm whether this movement was specific to that instrument, one should also analyze options markets.

The 25% delta skew compares similar call (buy) and put (sell) options and will turn positive when “fear” is prevalent. That situation reflects the protective put options costing higher than similar risk call options.

The opposite movement holds when market makers are bullish, causing the 25% delta skew indicator to shift to the negative area. Readings between negative 8% and positive 8% are usually deemed neutral.

*Deribit Bitcoin options 25% delta skew. Source: laevitas.ch*

The 25% delta skew has been ranging in the neutral zone since Sep. 30. The latest bottom on Oct. 25 was negative 6%, not enough to be considered moderate bullishness. However, not even Bitcoin’s 12.5% correction from $66,600 on Oct. 21 to $58,200 on Oct. 28 was enough to inflict fear on professional traders.

Although no bearish signs emerged from the Bitcoin derivatives market, bulls should worry about the potential descending channel starting on Oct. 19. If that movement gets further confirmation, traders should expect $60,000 to become a resistance by Nov. 12.

There are no stress signs currently from professional traders, so a correction after a 63% rally in three weeks that led to the $67,000 all-time high on Oct. 20 should not be problematic.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Here’s why analysts say Bitcoin ETFs may ‘completely change the structure of the market’

October 28, 2021 Coin Telegraph

bitcoin futures

Analysts still hold a bullish longterm view of Bitcoin price, but they also agree that the newly launched BTC ETFs are a game-changer.

After reaching new all-time highs it's customary for Bitcoin (BTC) price see a bit of cooling off in the form of profit taking, consolidation and uncertainty from traders who are cautious about opening new positions at record highs. This appears to be exactly what is occuring this week as Bitcoin price struggles to hold the $60,000 level as support.

*BTC/USDT 4-hour chart. Source: TradingView*

Generally, most analysts still retain a bullish macro view of Bitcoin's price trajectory, to the extent that PlanB, Willy Woo and others claim that the second-half of the bull market was certified by the price hitting $67,000 last week.

Here’s what analysts have to say about what may come next for the price of Bitcoin, along with some insights into the greater market dynamics that are currently at play.

Bitcoin ETFs have “completely changed the structure of the market”

A lot of the hype surrounding Bitcoin price over the past couple of weeks has revolved around the launch of a BTC ETF. For years analysts have aid that the instrument's approval would enable a new level of access for institutional investors and officially cement Bitcoin's "mainstream" status.

Now that two futures-based BTC ETFs have launched, there has been a rush by many firms to propose new ETFs, including a leveraged ETF filing from Valkyrie and an inverse Bitcoin ETF from Direxion that would allow speculators to short the price of BTC.

The arrival of these ETF options has “completely changed the structure of the market,” according to Ben Lilly, market analyst and co-founder of Jarvis Labs, "as there is now tertiary derivatives in crypto via spot access, CME futures, futures-based ETFs and options on ProShares Bitcoin Strategy ETF (BITO)."

Lilly said,

“This will create a lot of arbitrage opportunities in the market as already exists with the CME spread. This spread will compress in time as more desks allocate capital to Bitcoin strategies. And in effect, volatility is sure to compress moving forward since any swings will see more capital executed as part of various strategies.”

According to Lilly, the main takeaway from the launch of BTC ETFs, is that “more capital will be flowing into various forms of Bitcoin exposure.” He also noted that “this process takes time” and that “spreads can persist until this new equilibrium is found.”

Analysts expect an intense fight between bulls and bears

One issue that has not received much attention amid the rollout of Bitcoin ETFs is how the method that these products determine the price of BTC will affect the actual spot price of BTC, as well as the spread.

According to David Lifchitz, managing partner and chief investment officer at ExoAlpha, the “premiums and discounts over fair value” that apply to these products will likely lead to larger spreads between the specific Bitcoin ETF and the underlying spot price “as these other contracts also have a premium/discount which tends to be the wider the farther the contract expiration.”

Lifchitz said,

“Add to that the cost of continuously rolling out the futures from one month to another, which will also weigh on the value of the ETF vs. spot over time, and you end up with a total crapshoot that will not track closely the BTC spot price but just correlates to it!”

As far as BTC price action goes, Lifchitz pointed to the firm rejection at the $63,000 resistance level and noted that “the fight here is intense between Bulls and Bears.”

Lifchitz said,

“However, the previous attempts from the bears to take down BTC have been mild, taking it down to just $58,000 before the bulls charged again... so we keep our potential downside targets around $58,000 and $53,000 in the short term, and looking for the $63,000 resistance to become support for the next leg up.”

Some expect a pullback to the low $50,000 range

Similar sentiments were expressed by independent market analyst Ryan Cantering Clark, who posted the following tweet outlining why he is “out of BTC completely for now.”

TBF.

This market feels kind of heavy. All the activity in the smaller projects and failure by BTC and ETH at ATH feels like the canary in the coal mine.

This market tends to be momo driven and fall under its own weight rather than range higher.

Out of BTC completely for now.
— Ryan Cantering Clark (@CanteringClark) October 27, 2021

In a follow-up tweet, Clark highlighted lower level support zones to keep an eye on and where a good entry might present itself.

Clark said,

“If $58,000 does not hold, we likely revisit the low $50,000s. So I will either get involved there, or get involved higher. If leverage can be purged from the system without the above conditions, great. Right now that is my main concern.”

The overall cryptocurrency market cap now stands at $2.452 trillion and Bitcoin’s dominance rate is 44.9%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bank of Russia Not Ready to Allow Bitcoin ETF Trading, Governor Says

October 24, 2021 Bitcoin.com

Bitcoin price consolidation leans toward ‘another leg higher’

October 23, 2021 Coin Telegraph

bitcoin futures

Bitcoin is a way off from its $67,000 all-time high, but analysts say historical data and fractals point toward “another leg” up.

On Oct. 22 Bitcoin (BTC) price entered what some traders predict to be a "consolidation phase" as investors lock in profits following a non-stop run-up in price that began on Oct. 1 and saw BTC increase 55% in just three weeks.

Data from Cointelegraph Markets Pro and TradingView shows that a wave of midday selling on Friday dropped the price of Bitcoin from support at $63,300 down to the $60,000 level.

*BTC/USDT 1-day chart. Source: TradingView*

Here’s what market analysts are saying about Bitcoin's current price action for the short-term.

“Bitcoin could be ready for another leg higher”

The current price action is seen as a welcome development for crypto market intelligence firm Decentrader, which suggested that “Bitcoin is likely to progress higher through Q4 of 2021” thanks in large part to the launch of the ProShares Bitcoin Strategy ETF (BITO) and the Valkyrie Bitcoin Strategy fund (BTF).

In response to concerns that the top is in for BTC, Decentrader pointed to the history of new all-time highs and highlighted the fact that “there are zero instances of Bitcoin breaking significant previous all-time highs and failing to continue higher.”

According to the firm’s analysis, the current Bitcoin fractal pattern suggests “that the next major stop higher for Bitcoin would be $72,000 if momentum can be maintained, after which the 1.618 extensions suggests around $88,000 would prove to be a target of interest."

The spike in derivatives funding seen over the past couple of days has now “reset towards more balanced levels” with open interest remaining in line with the uptrend, which Decentrader suggested helps to reduce the risk of correcting lower.

As to analysts, “A weekend push higher is likely to be met with initial resistance at $65,000, which is the 61.8% retracement from $66,800 and the value area high of the range.”

Decentrader said:

“Price is at a critical pivot point at the time of writing – any corrections towards $50,000 we consider buying opportunities and price appreciation into low funding coupled with increasing open interest suggesting Bitcoin could be ready for another leg higher.”

BTC is on track to trade like gold

One of the popular comparisons being made by financial analysts is how the release of a Bitcoin ETF compares to the release of the first gold ETF.

According to Bloomberg Intelligence, “strong inflows for the new ProShares Bitcoin Strategy ETF show pent-up demand and quantitative traders targeting arbitrage opportunities, which are likely to narrow spreads and pressure volatility.”

*Bitcoin futures vs. Gold futures. Source: Bloomberg Intelligence*

Bloomberg Intelligence said:

“We see BTC on track to trade like gold.”

Short term pullback between $56,000 and $59,000

Insight into what may come next for BTC in the short term was provided by Cointelegraph contributor Michaël van de Poppe, who posted the following chart outlining the lower area of support to keep an eye on for a good re-entry point.

According to van de Poppe, the $64,000 zone was “a crucial level” for the price to break above, which it failed to do, and “so a corrective move is taking place.”

Poppe said:

“Overall, looking at $56,000 to 59,000 as a good spot to buy.”

The overall cryptocurrency market cap now stands at $2.518 trillion and Bitcoin’s dominance rate is 45.5%.

Altcoin Roundup: Holding Bitcoin? Here’s how to put it to work in DeFi

October 22, 2021 Coin Telegraph

Binance

BTC is back at all-time highs, meaning it’s even easier for holders to capitalize on the lucrative yield opportunities DeFi offers to investors who are willing to stake their tokens.

The long-awaited day finally came on Oct. 19 as the first Bitcoin (BTC) exchange-traded fund (ETF) went live on the New York Stock Exchange, thrusting the crypto asset into the limelight across mainstream news outlets and alternative media alike.

Despite the fact that the ETF in question will hold no actual Bitcoin and is instead a futures-based instrument, investors and pundits across the ecosystem have largely hailed its launch as proof that Bitcoin has hit the big leagues and will soon surpass the coveted $100,000 price target.

Many investors either don’t have access or will choose not to interact with the newly launched EFT, but holders can still use a variety of strategies to earn a yield on their BTC holdings.

Here’s a look at some strategies BTC holders can use to earn a yield.

DeFi meets BTC in BadgerDAO

BadgerDAO is an open-source protocol built on the Ethereum network that has the specific goal of building products and the required infrastructure needed to simplify the integration of Bitcoin into decentralized finance (DeFi).

Currently, BadgerDAO has the most extensive list of BTC paired pools where investors can provide liquidity.

*BadgerDAO Bitcoin yield offerings. Source: BadgerDAO*

As seen in the image above from the BadgerDAO dashboard, there are different offerings from the simple staking of Wrapped BTC (wBTC), which can earn a yield ranging from 1.22% to 27.98% depending on the terms of the lockup, to the staking in more complex liquidity provider (LP) strategies like the renBTC/wBTC/sBTC pool, which offers a yield ranging from 7.07% to 45.37%.

It is important to note that there are risks involved with wrapping BTC and RenVM because a user must relinquish control of the original BTC in order to obtain either wBTC or renBTC, violating the crypto code of “not your keys, not your crypto.”

For LP tokens that pair BTC with other cryptocurrencies such as Ether (ETH), BADGER or stablecoins like Tether (USDT) and USD Coin (USDC), holders must also consider the possibility of suffering an impermanent loss if the price of Bitcoin increases by a significant amount compared to the other token it is paired with.

Trader Joe

Trader Joe is the largest decentralized trading platform by total value locked (TVL) on the Avalanche network, according to data from Defi Llama, with $2.18 billion worth of assets currently on the protocol.

Using wBTC on the Avalanche Network requires another layer of wrapping that produces wBTC.e, which can then be traded on the network or used to provide liquidity.

At the time of writing, Trader Joe is offering a yield on three LP tokens, including a return of 26.223% for the wBTC.e/AVAX pair, 16% for the wBTC.e/USDC.e pair, and 11.9% for the wBTC.e/USDT.e pair. All rewards are paid out in the protocol’s native JOE token.

Raydium

Raydium is the top-ranked DeFi protocol on the Solana network, according to data from Defi Llama, and currently boasts a TVL of $1.77 billion.

Users who wish to use their BTC on Solana have the option of pairing it with USDC, USDT, Serum (SRM) and a wrapped form of Solana known as mSOL.

*Bitcoin-related pools on Raydium. Source: Raydium*

The yields offered range from 5.16% to a high of 14.27%, with all rewards paid out in the platform’s native RAY token.

PancakeSwap

PancakeSwap is the No. 1 ranked protocol by TVL on the Binance Smart Chain (BSC) with data from Defi Llama showing that $5.39 billion worth of tokens is currently locked on the protocol.

In order to utilize Bitcoin on the BSC, it must first be wrapped to become BTCB, which can then transact on the network.

*Bitcoin-related pools on PancakeSwap. Source: PancakeSwap*

At present, PancakeSwap is offering a 5.44% return for the BTCB/ETH pair, a 15.82% return for the BTCB/BUSD pair (Binance’s stablecoin, Binance USD) and 20.79% for the BTCB/BNB pair. All rewards are paid out in the protocol’s native CAKE token.

Decentralized Bitcoin futures

DYdX is a decentralized perpetual futures trading platform that made waves back in September when it airdropped thousands of dollars worth of its native DYDX governance token to early adopters of the platform.

Similar to the ProShares Bitcoin Strategy ETF, trades made on the dYdX protocol do not settle in actual Bitcoin but instead in a USD stablecoin, so BTC stakers may not be too interested in the protocol if directly increasing Bitcoin holdings is the only goal.

However, as opposed to trading a government-regulated futures product that is only available when the traditional markets are open, dYdX offers the decentralized, 24/7 trading environment that the crypto faithful have grown to love.

Want more information about trading and investing in crypto markets?

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Traders brace for a drop to $58K if Bitcoin price loses the $62K support

October 21, 2021 Coin Telegraph

Traders brace for a drop to K if Bitcoin price loses the K support

bitcoin futures

After a 100%+ move to a new all-time high, profit taking kicks in and Bitcoin traders brace for a possible retest of the $58,000 to $62,000 zone.

Whipsaw price action has returned to the cryptocurrency market after Bitcoin’s (BTC) price lost steam at $67,100 and retracted to the $62,000 level.

An early morning 87% flash crash in the price of BTC at Binance US saw the price briefly touch $10,000 and it may have set the market on edge, but generally, it appears to have been an isolated event. Data from Cointelegraph Markets Pro and TradingView show that bears have briefly taken control of the market with the price now fluctuating between $62,000 to $63,500.

Here’s a look at what traders and analysts are saying about the recent price action for Bitcoin and what could be next for the top-ranked digital asset.

$66,000 needs to become support

The rapid climb in Bitcoin over the past three weeks pushed the price back to the major resistance level it faced in April, a fact highlighted by independent crypto analyst ‘Rekt Capital.’ As shown below, there was a firm rejection near the $63,500 resistance level.

In mid-April 2021, #BTC rejected from the orange resistance area

Today, $BTC is trying to retest this same area but this time as support#Crypto #Bitcoin pic.twitter.com/0V2Geql47T
— Rekt Capital (@rektcapital) October 21, 2021

The main difference this time around is that now bulls are attempting to establish this level as the new support zone, which will give BTC a good foundation for a further push higher.

For the short term, this has now become a key price level to keep an eye on as the market heads into the final week of October.

Q4 has historically been bullish

The breakout to a new all-time high has many across the space debating whether now is a good time to take profits or if it’s time to increase position sizes instead.

According to David Lifchitz, managing partner and chief investment officer at ExoAlpha, “In crypto-land, everything is possible,” and he suggested that “a continuous uptrend taking BTC to $80,000 shortly from here, or a mild pullback down to $58,000 or even down to $53,000 before pulling higher toward $80,000 and above” were both well within the realm of possibilities.

Historically speaking, “probabilities would favor some pullback after the recent torrid ride,” according to Lifchitz, who highlighted the $64,500 and $58,000 levels as some of the key areas to keep an eye on for the potential to “lighten up positions in case of a pullback and load-up again in the $53K region if the pullback deepens, or reload where the first stops were hit if the pullback doesn't deepen.”

Overall, Lifchitz indicated that the path ahead looks positive for Bitcoin and the wider cryptocurrency market as it enters the final quarter of 2021.

Lifchitz said:

“The 4th quarter has historically been bullish, so it favors an upside target by year-end. So overall bullish mid-term but maybe some light turbulence ahead.”

Bitcoin needs to hold $62,000

A final perspective was offered by pseudonymous Twitter user ‘E-Club Trading’, who posted the following chart showing the recent price action and important support and resistance zones.

The analyst said:

“A bit of profit taking in BTC as it drops below the previous high of $65,000. It needs to hold above $62,000, or we could retest $58,000 in the next few sessions. Glad to be out of the way for the moment.”

The overall cryptocurrency market cap now stands at $2.548 trillion and Bitcoin’s dominance rate is 46.5%.

Valkyrie Bitcoin futures ETF to launch on Nasdaq on Oct. 22

October 21, 2021 Coin Telegraph

bitcoin futures

Valkyrie’s Bitcoin futures ETF will go live on Nasdaq just a few days after ProShares debuted a similar product on NYSE.

Valkyrie’s Bitcoin (BTC) futures-based exchange-traded fund (ETF) is poised to follow the launch of ProShares' Bitcoin Strategy ETF this Friday.

Valkyrie Bitcoin Strategy ETF is finally effective and is set to start trading on Nasdaq under the ticker BTF on Oct. 22, Valkyrie confirmed to Cointelegraph on Thursday.

The launch comes after the United States Securities and Exchange Commission, or SEC, granted a notice of effectiveness to Valkyrie Bitcoin Strategy ETF on Oct. 20.

According to Valkyrie Funds' CEO Leah Wald, the upcoming launch of Valkyrie’s Bitcoin futures ETF marks an important milestone in the relationship between the cryptocurrency industry and U.S. regulators.

“This launch is important because it's further affirmation that U.S. regulators want to collaborate with the industry to regulate crypto assets rather than ban them,” she said.

“The more products that come to market, the more awareness they bring and, hopefully, more adoption. There are of course other filings for similar products, and it would make sense for them to come to market,” Wald added.

As previously reported, ProShares’ Bitcoin Strategy ETF became the first Bitcoin futures-based ETF to ever launch in the United States, starting trading on the New York Stock Exchange on Oct. 19. Earlier in October, the SEC also approved a Bitcoin-linked ETF product by Volt Equity, providing investors with an instrument investing in companies with significant exposure to Bitcoin.

Sources Say Valkyrie Bitcoin Strategy ETF Set to Launch on Nasdaq This Week

October 21, 2021 Bitcoin.com

How a Bitcoin Spot ETF Would Differ from a Futures ETF

October 20, 2021 The Crypto Briefing

bitcoin futures

Pro traders stumbled but are bullish again

Bitcoin ETFs have “completely changed the structure of the market”

Analysts expect an intense fight between bulls and bears

Some expect a pullback to the low $50,000 range

“Bitcoin could be ready for another leg higher”

BTC is on track to trade like gold

Short term pullback between $56,000 and $59,000

DeFi meets BTC in BadgerDAO

Trader Joe

Raydium

PancakeSwap

Decentralized Bitcoin futures

Want more information about trading and investing in crypto markets?

$66,000 needs to become support

Q4 has historically been bullish

Bitcoin needs to hold $62,000

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