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US Government Debt To Surpass $51,990,000,000,000 by 2033 As Current Consumer Debt Shatters $17,000,000,000,000: Statista

US Government Debt To Surpass ,990,000,000,000 by 2033 As Current Consumer Debt Shatters ,000,000,000,000: Statista

US government debt is projected to skyrocket over the next decade as consumers cross an all-time high in debt accumulation. Citing data from the New York Fed’s quarterly report on household debt and credit, business data provider Statista says that the total household debt skyrocketed to a historic high of $17.05 trillion in Q1 of […]

The post US Government Debt To Surpass $51,990,000,000,000 by 2033 As Current Consumer Debt Shatters $17,000,000,000,000: Statista appeared first on The Daily Hodl.

Bitget Pumps Another 15.6%, $10 Incoming as Best Wallet Presale Raises $5.5M?

US Banks Losing Money on Mortgages in Historic Housing Shock: Report

US Banks Losing Money on Mortgages in Historic Housing Shock: Report

US banks are losing money on mortgages for the first time on record, according to a new research report from the Mortgage Banker’s Association (MBA). The report, which dives into the latest stats from 2022, reveals a precipitous drop in revenue for financial institutions that issue real estate loans to businesses, investors and everyday Americans. […]

The post US Banks Losing Money on Mortgages in Historic Housing Shock: Report appeared first on The Daily Hodl.

Bitget Pumps Another 15.6%, $10 Incoming as Best Wallet Presale Raises $5.5M?

Bitcoin derivatives suggest $26K resistance level won’t hold for long

BTC margin and option markets show no signs of discomfort or overconfidence despite 28% gains in two days.

The price of Bitcoin (BTC) increased by 28% between March 12-14, reaching $26,500, its highest level since June 2022. Some may attribute the gains to the consumer price index's (CPI) 6% year-over-year increase in February, even though the figure was in line with expectations.

The inflation metric reached its lowest level since September 2021, which is a positive development, but it does not validate the Federal Reserve's attempt to reduce the metric to 2%. Most likely, risk markets, such as stocks and cryptocurrencies, soared after regional bank stocks recovered from their March 13 lows.

At 10:30 a.m. Eastern Time, First Republic Bank (FRC) shares were trading 54% higher, followed by Western Alliance Bancorporation (WAL) gaining 46% and KeyCorp (KEY) gaining 15%. The 30-year average mortgage rate decreased to 6.6% from 7.1% on March 7. Consequently, reduced mortgage rates have the potential to improve the housing market, which partially explains the rally.

The unexpected decline in mortgage rates may present an opportunity for price-sensitive homebuyers and homeowners waiting for a chance to lock in a lower rate. According to data from Realtor.com, a buyer of a median-priced home still faced a monthly mortgage payment that was 49% higher than it was one year prior.

Despite the possibility of a recession in the United States due to high interest rates, China's economic outlook remains positive. Li Qiang addressed reporters on March 14 for the first time since assuming the position that oversees the State Council, China's highest executive body. According to Qiang, non-state-owned enterprises in China will have greater room for development. 

Let's look at derivatives metrics to better understand how professional traders are positioned in the current market conditions.

Bitcoin margin markets signaling a market deficiency

Margin markets provide insight into how professional traders are positioned because it allows investors to borrow cryptocurrency to leverage their positions.

For example, one can increase exposure by borrowing stablecoins and buying Bitcoin. On the other hand, borrowers of Bitcoin can only take short bets against the cryptocurrency.

OKX stablecoin/BTC margin lending ratio. Source: OKX

Since March 13, OKX traders' margin lending ratio has been above 35, indicating a significant mismatch in favor of Bitcoin longs. Readings above 40 are uncommon and driven by a high stablecoin borrowing cost of 25% per year.

One should refer to the BTC option markets to confirm whether professional traders are effectively expecting further price increases.

Options traders are far from excited

Traders should also analyze options markets to understand whether the recent correction has caused investors to become less risk-averse. The 25% delta skew is a telling sign whenever arbitrage desks and market makers overcharge for upside or downside protection.

The indicator compares similar call (buy) and put (sell) options and will turn positive when fear is prevalent because the premium for protective put options is higher than the premium for risk call options.

In short, if traders anticipate a Bitcoin price drop, the skew metric will rise above 8%, and generalized excitement has a negative 8% skew.

Related: SVB and Silvergate are out, but major banks are still backing crypto firms

Bitcoin 60-day options 25% delta skew: Source: Laevitas

On March 13, when Bitcoin broke above the $22,000 resistance level, the BTC options' main risk gauge exited the fear zone that had been in place for three days. As options traders assigned the same risk assessment to bullish and bearish strategies, the 25% delta skew entered a neutral zone.

However, it would be incorrect to conclude that the negative 5% skew seen briefly on March 14 indicates excessive optimism or bullishness. Analysts and pundits frequently jump the gun and celebrate quick reversions, but anything between -8% and +8% remains in the neutral zone.

According to the pricing of options contracts, derivatives data indicates that professional traders maintained their long positions using margin markets and exited their bearish stance on March 13. Given the improvement in macroeconomic market conditions, Bitcoin bulls are well-positioned to drive the price above $26,000.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Bitget Pumps Another 15.6%, $10 Incoming as Best Wallet Presale Raises $5.5M?

Weiss Ratings Report Claims Crypto-Backed Home Loans Spell Trouble

Weiss Ratings Report Claims Crypto-Backed Home Loans Spell TroubleA report published on May 2 by the rating agency Weiss Ratings warns that crypto-backed mortgages “spell risk.” Weiss editor Jon D. Markman said backing a mortgage with crypto is an “interesting strategy,” but stressed that during these market conditions “investors should be skeptical.” Weiss Ratings Editor Doesn’t Believe Crypto and Mortgages Mix According to […]

Bitget Pumps Another 15.6%, $10 Incoming as Best Wallet Presale Raises $5.5M?

Biggest Bank in El Salvador Now Accepts Bitcoin as Payment for Financial Products

Biggest Bank in El Salvador Now Accepts Bitcoin as Payment for Financial ProductsBancoagricola, the biggest bank in El Salvador, is now accepting bitcoin to pay for debts originated from the use of its instruments, according to a PR statement. The institution partnered with Flexa, a payments network, to include cryptocurrency capabilities in its software. Bancoagricola also allows merchants using Wompi services (a digital payment processor) to receive […]

Bitget Pumps Another 15.6%, $10 Incoming as Best Wallet Presale Raises $5.5M?

Digital Transformation Law Draft Would Allow Users to Pay Mortgages With Crypto in Spain

Digital Transformation Law Draft Would Allow Users to Pay Mortgages With Crypto in SpainA new proposal of a digital transformation law, written by a group of lawmakers in Spain would introduce the possibility of paying mortgages with cryptocurrency. The law draft also gives different incentives for companies and organizations using and developing solutions using these technologies, including tax cuts. Banks are also included in the regulation, and the […]

Bitget Pumps Another 15.6%, $10 Incoming as Best Wallet Presale Raises $5.5M?

Easy-Money Policy Continues: Fed Plans to Keep Purchasing Assets, Interest Rates to Stay Near Zero

Easy-Money Policy Continues: Fed Plans to Keep Purchasing Assets, Interest Rates to Stay Near ZeroMembers of the U.S. Federal Reserve discussed the possibility of economic measures and actions at the Federal Open Market Committee’s (FOMC) meeting on Wednesday. The Fed said that right now the central bank is not considering cutting back large asset purchases just yet, and the central bank also plans to keep interest rates at near-zero. […]

Bitget Pumps Another 15.6%, $10 Incoming as Best Wallet Presale Raises $5.5M?

Canadian Company Mogo Offers Bitcoin Rewards for Clients Engaging in a New Mortgage or Refinancing

Canadian Company Mogo Offers Bitcoin Rewards for Clients Engaging in a New Mortgage or RefinancingOn Monday, the publicly-listed Canadian company Mogo announced the firm is extending the bitcoin rewards program applied to the firm’s prepaid Visa card to the operation’s Mogomortgage product. Mogo members leveraging the Mogomortgage platform can earn up to $3,100 in bitcoin if they engage in a new mortgage or refinance an existing real estate loan. […]

Bitget Pumps Another 15.6%, $10 Incoming as Best Wallet Presale Raises $5.5M?