$161M Ethereum options expiry tilts toward bulls as ETH flips $2K to support

Ethereum price recently made a strong move above $2,000 and derivatives data suggests bulls are preparing to push ETH price higher.

With no short-term solution in sight for the surging network fees, some investors are afraid that Ether (ETH) price could face a correction. The EIP-1559 proposal is set to be bundled with the impending London upgrade, and this will change the gas fee structure, but traders are left to deal with high fees until then.

The flexible block size proposal aims for a more predictable fee pricing model, but this upgrade is scheduled for July, meaning, in the short term, Ether could be subject to price pressure. Adding to this, miners have been expressing concerns as the new proposal aims to burn part of the fees to create scarcity, reducing their income by up to 50%.

To prepare for downside events, professional traders usually buy protective put options without reducing their positions, especially those farming and staking with high yields. Although these are generally costly for longer-term periods, the trades are also offered weekly or bi-weekly at some exchanges.

The put-to-call ratio favors bears, but there’s more to it

Unlike futures contracts, options are divided into two segments. Call (buy) options allow the buyer to acquire Ether at a fixed price on the expiry date. Generally speaking, these are used on either neutral arbitrage trades or bullish strategies.

Meanwhile, the put (sell) options are commonly used as a protection from negative price swings.

To understand how these competing forces are balanced, one should compare the calls and put options size at each expiry price (strike).

For those unfamiliar with options strategies, Cointelegraph recently explained how to minimize losses despite keeping a bullish position.

Aggregate Ether April 9 expiry open interest. Source: Bybt

The above data shows that Ether’s April 9 expiry holds 77,800 Ether contracts, worth $161 million at the current $2,070 level. Meanwhile, the call-put ratio favors the more bearish put options by 11%, dominating the strikes below $1,850. Meanwhile, bullish call options have crowded the scene above $1,900.

Despite the imbalance, the net impact leans bullish

Options markets are an all-or-nothing game, meaning they either have value or become worthless if trading above the call strike price, or the opposite for put option holders.

Therefore, by excluding the neutral-to-bearish put options 25% below the current $2,070 price and the call options above $2,480, it is easier to estimate the potential impact of next Friday’s expiry. Incentives to pump or dump the price by more than 25% become less likely as the potential gains will seldom surpass the cost.

This selection entices to 33,000 call options from $1,200 to $2,480 strikes, currently worth $68 million. Meanwhile, the more bearish put options down to $1,580, amount to 18,100 Ether contracts worth $37 million. Therefore, buyers have a slight advantage for April 9 expiry.

The balance between call and put options initially showed a call-to-put ratio favoring the more bearish put options. Nevertheless, by excluding the put options 25% below the current price, the net result clearly favors bulls. This reinforces the view that the April 9 expiry should not be deemed bearish.

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.

Continue reading

$400K Bitcoin predicted this year, NFT warning, Instagram influencer in trouble: Hodler’s Digest, March 21–27

Coming every Saturday, Hodlers Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more a week on Cointelegraph in one link.

Top Stories This Week

Stock-to-flow creator doesnt think Bitcoins bull market is done

Bitcoins price seems to have stalled below $60,000 after surging to all-time highs earlier in March. But on the bright side, Fridays $6-billion expiration of options a record-breaking sum didnt deliver the slump that some were dreading.

The ever-optimistic PlanB says that we are nowhere near the end of the bull run, tweeting: Bitcoin is just getting started.

YouTuber and derivatives trader Tone Vays also believes the best is yet to come, telling Cointelegraph: While it is still possible for Bitcoin to make a lower low for the month in the $48,000 range, I believe we will go up to above $70,000 before June.

In recent days, BTC plunged to depths of $51,212.85 the lowest price seen in two weeks. Soon afterward, Michal van de Poppe warned that BTC needed to regain the $53,200$53,800 area to revive bullish momentum in the near term, or else more downside was possible. So far this weekend, that threat appears to have been averted.

 

 

Elon Musk says Tesla now accepts Bitcoin from U.S. customers

With tech stocks also taking a hammering at certain points this week, even Elon Musks announcement that Tesla now accepts Bitcoin from U.S. customers only delivered a temporary boost to BTCs price.

The billionaire CEO and Technoking said that the electric vehicle manufacturer would hold on to the Bitcoin it accumulates through sales rather than convert it into fiat. He also confirmed that support for crypto payments would be rolled out internationally later this year.

Teslas decision to shun fork products such as Bitcoin Cash proved calamitous for BCH, which tumbled to new all-time lows against BTC.

But some experts have warned that snapping up a Tesla using crypto might not be a smart move for now, at least. Ark Invest founder Cathie Wood has urged investors not to use their BTC for purchases until the Internal Revenue Service introduces some more sensible tax policies on crypto assets.

The U.S. currently regards Bitcoin as property rather than currency. This means that irrespective of whether you sell BTC for profit or use it to buy a shiny car, its considered to be a taxable event.

 

The NFT of record: New York Times raises $500,000 for charity in NFT column sale

Its now time for our whistle-stop tour of NFT news. You ready? Here goes.

First up, a New York Times reporter got a pleasant surprise when he decided to try and auction off one of his articles as an NFT. Just one day later, it sold for 350 ETH (worth almost $600,000 as of Saturday) with the proceeds going to charity.

Another big sale came when Twitter CEO Jack Dorsey sold a tokenized representation of his first-ever tweet for more than $2.9 million, also for good causes.

Data from Google Trends suggests that interest in nonfungible tokens has now surged to levels last seen during the ICO craze of 2017. Lego also dropped a hint that it may be getting involved in this flourishing sector after writing a cryptic tweet that said: Zeros and ones but still a brick.

Inevitably though, it wasnt all good news. SEC commissioner Hester Peirce also known as Crypto Mom has warned that selling fractionalized NFTs could end up breaking the law as this could result in the creation of an investment product.

 

 

Thetas mainnet 3.0 launch delayed until June, causing tokens price to sink

The crypto-powered esports streaming app Theta announced this week that it was delaying the launch of mainnet 3.0 until June.

In an announcement, the company said that it is still working to incorporate some building blocks for a nonfungible token marketplace. This is one of the reasons why a more thorough code review and testing is required, prompting the expected launch date to be pushed back from April 21 to June 30.

The network added: While delays are never ideal, we think this change is the prudent way forward to ensuring a successful mainnet 3.0 launch.

Investors in Theta took a dim view of the announcement. The token had hit all-time highs of $14.99 on Wednesday, but it fell by more than 25% in the 24 hours that followed.

 

Technoking and master of coin Elon Musk and Tesla CFO adopt new titles

Forget Tesla CEO Elon Musk has been promoted. According to a new SEC filing, the billionaire should now be referred to as Technoking of Tesla.

His chief financial officer, Zach Kirkhorn, has also been given a promotion to Master of Coin. Both men are going to retain their respective positions.

Musk has reason to celebrate, with figures suggesting that Tesla has been sitting on close to $19 million in unrealized profit per day since announcing its $1.5-billion Bitcoin purchase. This almost eclipses the $721 million in profit it made from selling 500,000 cars in 2020.

The billionaire also waded into the trendy world of nonfungible tokens this week when he announced he was planning to sell a musical NFT, with lyrics based on the hype surrounding the technology Its verified, its guaranteed. Very catchy.

Despite bids exceeding $1.1 million on the Valuables platform, Musk later took his ball home, tweeting: Actually, doesnt feel quite right selling this. Will pass.

What a shame.

 

 

Announcement of the week

 

Markets Pro delivers up to 1,497% ROI as quant-style crypto analysis arrives for every investor

Its now been a month since Cointelegraph Markets Pro launched bringing professional crypto market intelligence to every investor.

New figures this week showed that 41 of the 42 trading strategies tested by Markets Pro are currently beating Bitcoins investment returns, and 36 of them are winning against an evenly weighted basket of the top 100 altcoins.

Two key features are offered to subscribers. The first is the VORTECS Score, which is derived from an algorithm that examines multiple different variables (including sentiment, tweet volume, price volatility and trading volume) and compares those with historically similar marketscapes.

And the second is NewsQuakes: alerts on events that have historically had a significant impact on an assets price over the following 24 hours.

Cointelegraph Markets Pro is available exclusively to subscribers on a monthly basis at $99 per month, or annually with two free months included.

 

Winners and Losers

 

 

At the end of the week, Bitcoin is at $55,261.18, Ether at $1,705.62 and XRP at $0.56. The total market cap is at $1,739,387,070,168.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Dent, Ankr and AscendEX. The top three altcoin losers of the week are Avalanche, SushiSwap and Ren.

For more info on crypto prices, make sure to read Cointelegraphs market analysis.

 

 

Most Memorable Quotations

 

By banning crypto, India will end up with the lowest reserve of the most important currency the world has ever seen.

Raj Chowdhury, HashCash CEO

 

Dont try to act like Saylor wont take profits eventually, cause he will along with every other fund on the planet. Then theyll buy back lower.

Michael Saylor, MicroStrategy CEO

 

I think that it would be very likely that you will have [Bitcoin], under a certain set of circumstances, outlawed the way gold was outlawed.

Ray Dalio, hedge fund founder

 

Im not a big fan myself of encouraging or asking or wanting us to participate in the issuing of currency.

Brad Smith, Microsoft president

 

There is little social value in helping Elon Musk earn yet another $1 million.

Vitalik Buterin, Ethereum co-founder

 

You made me a ton of money.

Jim Cramer, CNBC host

 

Prediction of the Week

Bitcoin can reach $400,000 in 2021 as risk-off reserve asset Bloomberg

Bloomberg Intelligence senior commodity strategist Mike McGlone believes 2021 marks a watershed moment for the worlds biggest cryptocurrency.

He says BTC is well on its way to becoming a global digital reserve asset and it may be transitioning toward a risk-off asset.

Based on previous behavior, his analysis suggests that prices could peak at $400,000 this year. That eclipses other estimates such as the stock-to-flow model, which calls for an average of $288,000 between now and 2024.

 

FUD of the Week

 

Microsoft president says fintechs should leave currency to central banks

Microsoft president Brad Smith has said fintech firms have no business issuing private digital currencies, arguing that money matters should be left to central banks and governments.

Speaking at an online conference organized by the Bank for International Settlements, he said: I am not a big fan myself of encouraging or asking or wanting us [tech firms] to participate in the issuing of currency.

The remarks put Microsoft at odds with Facebook, which is continuing to pursue the launch of its Diem stablecoin project. Formerly known as Libra, the project sparked fierce criticism from financial regulators with many of them warning the digital asset could pose significant risks to the global economy.

 

Instagram influencer charged over duping followers out of Bitcoin worth $2.5 million

An Instagram influencer has been charged with wire fraud after he allegedly scammed followers out of Bitcoin worth $2.5 million.

Jay Mazini who had close to 1 million followers and was known for cash giveaways is accused of promising victims that he would buy Bitcoin off them at inflated prices. But its claimed that, when the crypto was sent, he didnt transfer the funds as promised.

An FBI official said: A quick search of the interwebs today will reveal an entirely different image of this multi-million-dollar scammer.

Mazini is currently being held on state charges in New Jersey and will face New York courts at a later date. If convicted, he faces up to 20 years imprisonment.

 

The last dip is the deepest as wife leaves husband for buying more Bitcoin

And we end with a sorry tale that suggests Bitcoin has caused a break-up.

A man on Reddit claims his wife left him after he refused to sell his Bitcoin when prices hit $60,000 and loaded up on more during the recent dip.

The user, u/Parking_Meater, said his wife packed her bags and has now gone to live with her sister.

He wrote: She super mad that I didnt sell at 60k and looks at the price often scolding me. I keep telling her we dont need the money and have the cash. We live nice. However today she caught me buying the dip and was so pissed she almost hit me!

Uh oh.

 

Best Cointelegraph Features

 

Microsoft waffling over Bitcoin? BTCs return to Xbox unlikely to spur adoption

While it could be a good sign for the industry if Microsoft accepts Bitcoin for its Xbox Games Store, Shiraz Jagati argues it is unlikely to have a major impact.

Crypto media runs with the bulls as new entrants compete against established brands

How has the Bitcoin bull run changed crypto media?

Ethereum network in a fee spin: Can the Berlin upgrade save the day?

The upcoming Berlin update contains EIPs aimed at reducing transaction costs, but it may not provide a long-term solution.

Continue reading

$51K Bitcoin price not a problem as ‘structurally, nothing has changed’

On-chain data points toward a bullish future for Bitcoin despite today’s sell-off to $50,400.

On March 25, concerns surrounding the record-breaking $6.1 billion (BTC) options expiry this Friday sparked an overnight sell-off that dropped Bitcoin price to $50,400.

The downturn was not a surprise for many traders and some called for a possible test of the $47,000 support level. Despite Bitcoin’s loss of bullish momentum, several derivatives indicators, including a bullish futures premium and a neutral skew, suggest that the price may not drop below $50,000.

BTC/USDT 4-hour chart. Source: TradingView

While technical indicators paint a mixed picture of Bitcoin’s short-term price action, the asset retains strong fundamentals today media reported that sovereign wealth funds have begun inquiring about opening positions in BTC. This points to growing global adoption for BTC and the cryptocurrency sector as a whole as new Ether (ETH) trusts are also being established to serve institutional investors.

Analysts suggest the market is oversold

Glassnode co-founder and CTO Rafael Schultze-Kraft recently highlighted a possible dip lower based on low realized price distribution between $51,100 and $54,000.

In a follow-up tweet after Thursday’s drop, Schultze-Kraft reaffirmed that the dip was “not unexpected” and in his view, the overall outlook remains bullish.

Schultze-Kraft said:

“Structurally, nothing has changed. I have yet to see a data point that points long-term bearish.”

Further evidence of a possible turnaround in the near-term can be found when looking at Bitcoin’s liquid supply change, which decreased by the largest amount in more than 6 months.

Bitcoin liquid supply change. Source: Glassnode

This suggests that a large number of BTC have been pulled out of the circulating supply and deposited into longer-term storage wallets as bulls prepare for the price to trend higher.

Altcoins sink lower

A majority of the altcoins were hit hard by the Bitcoin sell-off as traders across the market exited positions in an attempt to hold on to their recent gains.

Daily cryptocurrency market performance. Source: Coin360

The one stand-out among altcoins is Aragon (ANT), whose recent pivot toward DeFi and nonfungible tokens has helped to spark a 50% rally to $13.56.

Holochain (HOT) and Balancer (BAL) have also managed to put up a positive gain of 5.2% and 6.4% respectively.

The overall cryptocurrency market cap now stands at $1.62 trillion and Bitcoin’s dominance rate is 59.4%.

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.

Continue reading

Altcoins spike to new highs while Bitcoin bulls aim to recapture $57K

Terra (LUNA), Basic Attention Token and Cardano spiked to new highs as Bitcoin and Ethereum attempted to recover from their recent correction.

Bitcoin (BTC) price continues to recover from its sub-$55,000 correction and at the time of writing, traders are attempting to recapture the $57,000 level as a support. 

Data from Cointelegraph Markets and TradingView shows that a wave of early morning selling pushed Bitcoin price to a daily low of $53,167 and while dip buyers did manage to step in, the lack of purchasing volume is keeping BTC pinned in what appears to be a tightening range.

BTC/USDT 4-hour chart. Source: TradingView

While Bitcoin price could continue to meet overhead resistance in the $56,000 to $58,000 range, a strong bullish case still exists as a potential $6.1 billion worth of Bitcoin options are set to expire on March 26. According to Cointelegraph contributor Marcel Pechman, derivatives data indicates that the upcoming expiry is more advantageous for the bulls as long as BTC remains above $52,000.

Ether (ETH) has also traded in a consolidation pattern since setting a new all-time high at $1,950 on March 13 and professional traders view the $1,750 level as strong support following multiple bearish retests over the past week.

Altcoins press ahead while Bitcoin price recovers

Several altcoins saw their prices breakout on Tuesday as partnership announcements and exchange listings have proven to be effective price movers.

The biggest announcement of the day came from Coinbase Pro, which revealed that it has begun accepting inbound transfers of Cardano (ADA) and will support trading services “on or after 9 AM PT on Thursday, March 18, if liquidity conditions are met.”

Terra (LUNA) has also put on another double-digit gain overnight, spiking more than 40% from a low of $14.60 on March 15 to a new all-time high of $20.60 on $1.4 billion in trading volume.

LUNA/USDT 4-hour chart. Source: TradingView

Basic Attention Token (BAT) has also seen its price surge to a new record high at $1.18 as the blockchain-based web browser continues to reap the benefits of multiple announcements, including the acquisition of a search engine provider and plans to integrate NFT functionality and a DEX aggregator.

Traditional markets take a tumble as Treasuries rise

The global financial markets fell under pressure on Tuesday as weaker than expected retail sales and a rising 10-year Treasury yield, which closed the day up 0.87% at 1.621.

Following record highs set on March 16, the S&P 500 and Dow faced dropped throughout the day and closed down 0.16% and 0.39% respectively. The NASDAQ was able to start a late-day rally that helped its price close up 0.09%.

Analysts predict accelerated growth in the crypto market

Daily cryptocurrency market performance. Source: Coin360

Despite the drawdown in both Bitcoin and Ether price, the overall outlook for the cryptocurrency market is bullish as signs of steady mainstream adoption emerge on a daily basis.

Data shows that long-term cryptocurrency holders have been accumulating BTC in recent months, while short-term traders are confident that high leverage speculative trading will pay off. The steady increase in BTC accumulation suggests that the current bull market has ample room to run higher.

The overall cryptocurrency market cap now stands at $1.723 trillion and Bitcoin’s dominance rate is 60.8%.

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.

Continue reading

Bitcoin bulls take a breather while BTC price slips below $55,000

Sellers pushed Bitcoin price below $55,000 even as record-high BTC futures open interest and optimism surrounding the issuance of $1,400 stimulus checks for Americans had traders anticipating a rally.

Bitcoin price sold off on March 15 as bears pushed the price back into the mid-$50,000 range a few days after (BTC) hit a new all-time high above $61,000. 

Data from Cointelegraph Markets and TradingView shows that Bitcoin price dropped as low as $54,600 and at the time of writing, buyers have not stepped in to arrest the decline.

BTC/USDT 4-hour chart. Source: TradingView

A series of recent developments have increased the fear, uncertainty and doubt (FUD) factor for the top cryptocurrency, including rumors of a potential digital asset ban in India that would criminalize the possession, issuance, mining, trading and transfer of cryptocurrency.

Adding to the bad news of the day, PancakeSwap (CAKE) and Cream Finance (CREAM), two of the top DeFi projects on the Binance Smart Chain, fell victim to a DNS spoofing attack that sought to phish users into entering their private keys on the website.

Both projects immediately informed users of the exploit and advised them to avoid logging in until the issue is resolved. and are reminded to keep their private keys and seed phrases secure and stored offline. At the daily close CAKE price was down by 8.7% and CREAM dropped by 14.3% before recovering to $110 at the daily close.

The bullish uptrend remains intact

Despite Monday’s decline, traders are optimistic that BTC will see a rapid recovery and a recent survey estimates that up to 10% of the $400 billion in pandemic relief for U.S. citiz could be used to purchase Bitcoin and stocks.

Another bullish sign for BTC comes from the futures markets, where a record $22.5 billion in open interest on BTC futures indicates that bulls remain optimistic that the current uptrend will continue.

According to Chad Steinglass, Head of Trading at CrossTower, the early morning sell-off was not surprising due to several factors including less liquidity on the weekends which can lead to “liquidations in highly levered swap and options products that trade outside of the U.S.,” exacerbating the downward movement.

Steinglass said:

“Couple this with the fact that China has been trading weak ever since the Lunar New Year in both equity and crypto markets, and a sell-off from the weekend highs, while disappointing, is not particularly surprising.”

Stimulus optimism leads to new record-highs in equities

The traditional financial markets rallied on Monday as optimism surrounding the recent $1.9 billion stimulus package signed by President Biden helped dampen concerns related to rising Treasury yields.

The S&P 500, Dow and NASDAQ all closed the day positive, up 0.65%, 0.53% and 1.05% respectively. The S&P 500 and Dow both establishing new all-time highs as the trading day closed.

Select altcoins ignore Bitcoin’s bearish turn

Daily cryptocurrency market performance. Source: Coin360

Despite the bearish turn of events, several altcoins were able to resist and rally higher.

Enjin (ENJ) saw its price surge 32% to a new all-time high of $3.00 during the early trading hours as the altcoins volume surged after being listed on Huobi exchange.

The dual-token system of VeChain (VET) and the VeThor Token (VTHO) also moved higher as a high volume spike lifted VET to a new all-time high at $0.0827. VTHO price increased 37% to $0.0119, its highest level in over two years.

BTC/USD daily chart. Source: Coin360

The overall cryptocurrency market cap now stands at $1.71 trillion and Bitcoin’s dominance rate is 60.9%.

Continue reading