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Ethereum Wallet Metamask Adds Bank-to-Crypto Transfers via Sardine

Ethereum Wallet Metamask Adds Bank-to-Crypto Transfers via SardineAccording to a Consensys blog post published on October 11, the Ethereum-based wallet Metamask has added instant bank-to-crypto transfers via the automated clearing house (ACH) settlement merchant Sardine. Metamask Users Can Swap Fiat for Over 30 Crypto Tokens On Tuesday, the crypto firm Consensys published an announcement that explains the ETH wallet Metamask has added […]

Kyberswap Hack: Blockchain Security Firm Reports Movement of 800 ETH From Exploiter’s Address

Decentralized App BCH Bull Prepares for Launch, Platform Allows Users to Long or Hedge Bitcoin Cash Against a Myriad of Tradeable Assets

Decentralized App BCH Bull Prepares for Launch, Platform Allows Users to Long or Hedge Bitcoin Cash Against a Myriad of Tradeable AssetsJust recently the developers behind the Bitcoin Cash-centric project Anyhedge released the alpha version of the Anyhedge Whitelabel and since then, 284 smart contracts were created onchain, and more than $32,900 in funds hedged using the alpha protocol. Furthermore, this month, General Protocols, the engineers behind Anyhedge, revealed the team plans to launch a decentralized […]

Kyberswap Hack: Blockchain Security Firm Reports Movement of 800 ETH From Exploiter’s Address

Bears have a $100M reason to keep Bitcoin price under $45K until Friday’s options expiry

BTC price is in a freefall, and data suggests bears will keep the pressure on until April 8’s options expiry.

Some analysts argue that Bitcoin (BTC) rallied too fast and too soon and the weakness that we see on April 7 is a result of that. Currently, a new COVID-19 variant has caused the Chinese government to implement severe restrictions on Shanghai and other major cities and persistent regulatory concerns continue to weigh down th sentiment within the crypto sector.

Another concerning development is the March 31 European Parliament's Committee on Economic and Monetary Affairs (ECON) vote to update the regulations in regards to the ability of exchange platforms to deal with noncustodial crypto wallets.

Should the regulatory project make it to the legislative phase in the upcoming months, it would place strict disclosure requirements on transactions for crypto exchanges in the European Union.

Bitcoin/USD 1-day price chart. Source: TradingView

Not everything has been negative for Bitcoin because the cost of moving Bitcoin across the network has hit decade lows, according to research by Galaxy Digital. The Bitcoin median transaction fee has plummeted to 0.00001292 Bitcoin ($0.59) in 2022, the lowest in 11 years.

According to Glassnode on-chain analyst James Check, "batching and Segwit is certainly part of the mix," because it increases the number of transactions that fit in a block.

Bulls were taken by surprise

Bitcoin's drop below $45,000 on April 6 took bulls by surprise because only 8% of the call (buy) option bets for April 8 have been placed below this price level.

Bulls might have been fooled by the recent attempt to overtake $48,000 on March 29 and this is shown in their bets for April 8's $610 million options expiry that go all the way to $65,000.

Bitcoin options aggregate open interest for April 8. Source: CoinGlass

A broader view using the 0.97 call-to-put ratio shows balanced bets between the $300 million call (buy) open interest stands and the $310 million put (sell) options. Now that Bitcoin is back below $45,000, most of these bullish bets will become worthless.

For example, if Bitcoin's price remains below $45,000 at 8:00 am UTC on April 8, only $24 million worth of these call (buy) options will be available. This difference happens because there is no use in the right to buy Bitcoin at $50,000 if it trades below this level at expiry.

Bears are aiming for a $145 million profit

Listed below are the four most likely scenarios based on the current price action. The number of options contracts available on April 8 for call (bull) and put (bear) instruments varies, depending on the expiry price. The imbalance favoring each side makes up the theoretical profit:

  • Between $42,000 and $44,000: 250 calls vs. 3,650 puts. The net result favors the put (bear) instruments by $145 million.
  • Between $44,000 and $45,000: 550 calls vs. 2,800 puts. The net result favors bears by $100 million.
  • Between $45,000 and $46,000: 700 calls vs. 2,150 puts. The net result benefits put (bear) options by $60 million.
  • Between $46,000 and $47,000: 1,800 calls vs. 1,500 puts. The net result is balanced between call (buy) and put (sell) instruments.

This crude estimate considers the call options used in bullish bets and the put options exclusively in neutral-to-bearish trades. Even so, this oversimplification disregards more complex investment strategies.

For instance, a trader could have sold a put option, effectively gaining positive exposure to Bitcoin above a specific price but unfortunately, there is not an easy way to estimate this effect.

Related: Scaramucci sees bright future for crypto but ‘very worried’ about US politicians

Bears have incentives to suppress Bitcoin price

Bitcoin bears need to push the price below $44,000 on April 8 to secure a $145 million profit. On the other hand, the bulls' best case scenario requires a 4.3% gain from the current $44,200 to $46,000 zone to balance the scales.

Bitcoin bulls had $65 million in leveraged long positions liquidated on April 6, so they probably have fewer resources to push the price higher in the short term. With this said, bears will likely try to suppress BTC below $45,000 before the April 8 options expiry.

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.

Kyberswap Hack: Blockchain Security Firm Reports Movement of 800 ETH From Exploiter’s Address

Total Value Locked Across Defi Nears $200 Billion, Non-Ethereum Projects Gather Steam

Total Value Locked Across Defi Nears 0 Billion, Non-Ethereum Projects Gather SteamAt the time of writing, the total value locked (TVL) in decentralized finance (defi) is around $176 billion across various blockchains like Ethereum, Binance, Terra, Polygon, Solana, and Avalanche. While Ethereum commands $130 billion of the aggregate total locked, a myriad of other defi-fueled blockchains continue to see TVLs steadily rise. Total Value Locked Across […]

Kyberswap Hack: Blockchain Security Firm Reports Movement of 800 ETH From Exploiter’s Address

Metamask Surpasses 10 Million Monthly Active Users, Climbing 1,800% in 12 Months

Metamask Surpasses 10 Million Monthly Active Users, Climbing 1,800% in 12 MonthsOn Tuesday, the noncustodial digital currency wallet Metamask announced that the platform has surpassed 10 million monthly active users (MAUs). Year-to-date, Metamask has seen 19x growth since July 2020 as MAUs climbed 1,800% in 12 months. Metamask Hits Over 10 Million Monthly Active Users There’s no doubt that Metamask has been a popular Ethereum blockchain […]

Kyberswap Hack: Blockchain Security Firm Reports Movement of 800 ETH From Exploiter’s Address

BCH Defi Project Detoken to Close Its Doors Over Regulatory Climate Toward Crypto Derivatives

BCH Defi Project Detoken to Close Its Doors Over Regulatory Climate Toward Crypto DerivativesOn August 28, the Bitcoin Cash-based decentralized finance (defi) platform Detoken announced the project is closing its doors on September 4, 2021. The project’s founder, Semyon Germanovich, explained that the main reason for shutting the defi project down is because of the “changing regulatory outlook on cryptocurrency derivatives.” Defi Project Detoken to Shut Down Operations […]

Kyberswap Hack: Blockchain Security Firm Reports Movement of 800 ETH From Exploiter’s Address

FATF’s Annual Crypto Review Highlights ‘Continued Use of Anonymity Tactics’ and ‘Lack of Effective’ Regulation

FATF’s Annual Crypto Review Highlights ‘Continued Use of Anonymity Tactics’ and ‘Lack of Effective’ RegulationThe Financial Action Task Force (FATF) has published the organization’s 12-month review and the research highlights that only 45% of the 128 reporting jurisdictions have complied with AML/CFT policy and FATF recommendations. The annual review stresses that the “lack [of] effective” regulation makes it “challenging for competent authorities to follow the transaction trail, buying more […]

Kyberswap Hack: Blockchain Security Firm Reports Movement of 800 ETH From Exploiter’s Address

Developers Launch the First Hosted Noncustodial Payment Processor for Bitcoin Cash Payments

Developers Launch the First Hosted Noncustodial Payment Processor for Bitcoin Cash PaymentsBitcoin Cash proponents have recently been introduced to a new noncustodial payment processor called Prompt.cash. The platform provides merchants with a simple way to accept peer-to-peer electronic cash payments and can also generate a new address per invoice. Prompt.cash: A Hosted Noncustodial Payment Processor for Accepting P2P Electronic Cash A number of innovative applications that […]

Kyberswap Hack: Blockchain Security Firm Reports Movement of 800 ETH From Exploiter’s Address