Crypto derivatives market down but not out as $3B expiry sours the mood

Crypto derivatives market down but not out as $3B expiry sours the mood 1
Crypto derivatives market down but not out as $3B expiry sours the mood 2

As the crypto derivatives market moves into the red today, the mood is soured by the settling of a $3 billion contract that expired on Friday. The January 2018 contract, which is a futures contract, settled on Friday at a value of $4,800, a figure 30% lower than the $6,600 price tag it had at the start of the year. Each of these sample blog intros above have slightly different tone and style, but have one thing in common. The first sentence of each blog intro mentions the blog domain and its category in a non-obvious way. In the first blog intro sample above, the blog domain is given as “Vcpost”, which is the short name for Venture Capital

The third largest expiry in the Crypto derivative market this year added to the bearish sentiment in the market as traders become more wary of the market conditions. This led to a fall in the prices of Bitcoin and other altcoins as prices reached a new low during the expiry.

The decentralized exchange Deribit, one of the world’s largest derivatives exchanges, was forced to halt trading for several hours yesterday due to a massive sell wall on its BTCUSD perpetual contract. The $2.8 million sell order was placed at the market price, and was for more than double the daily volume of BTCUSD futures traded on the platform. As a result, Deribit’s market makers became reluctant to place any further bids on the perpetual contract, and the price of the contract went to $0.01 before trading was halted.. Read more about bitcoin expiration date and let us know what you think. Bitcoin (BTC) has led the entire crypto-currency market into a tumultuous period after a large portion of the crypto-currency went off the market on the 19th. May turned red, a day now known as Black Wednesday. The price of BTC fell below $40,000 for the first time after reaching that mark on the 9th. In February, resistance was broken when Tesla announced its purchase of BTC for $1.5 billion and announced it would accept bitcoin as payment. At the time of writing, the price of BTC has moved slightly closer to the $37,000 mark, bouncing between the $36,000 and $40,000 mark without managing to break out in either direction. The irony of this collapse in the price of the leading cryptocurrency is that the impetus came from Elon Musk’s comments about concerns about bitcoin’s energy consumption, as well as his company Tesla’s refusal to accept bitcoin as a form of payment. Cointelegraph discussed the issue with the market insight team at cryptocurrency exchange OKEx. A spokesman for the company explained the events by saying they were just an occasion to shake up an overheated market: We saw significant rallies in altcoins even as BTC continued to experience downward pressure, and the slightest hint of pessimism was enough for market participants to begin selling their assets in an effort to lock in gains or limit losses. High volatility and sudden price shocks also caused many long leveraged traders to pull out, resulting in further losses and sharper price declines. Another factor that has prolonged the collapse of the market is China’s stricter measures against bitcoin mining and trading. The news is part of a broad crackdown on illegal securities activities by the State Council’s Committee on Financial Stability and Development to maintain the stability of the stock, bond and currency markets. Among the many other affected altcoins, Ether (ETH), the dominant altcoin, also suffered greatly in terms of price. ETH reached 12. May reached an all-time high of $4,362, but after a market bloodbath, the token’s price dropped on May 23. to a 30-day low of $1,922, sending the price down 55%. In the ensuing rally, the price rose over 35% to trade in the $2,800 range. Needless to say, Bitcoin and Ether-based products are dominating the cryptocurrency derivatives space due to the huge popularity of these tokens. Although the price of an asset is highly dependent on the futures market, unexpected price movements often result in significant losses for investors.

Collapse led to major liquidations

The bitcoin futures market has grown significantly in 2021, alongside a rise in the spot price. On the 13th. April open interest in BTC exchange-traded futures reached a record high of $27.68 billion. But amid the market collapse, open interest fell nearly 58% on the 23rd to a 90-day low of $11 billion. May. The OKEx Insights team provides further clarification: On Black Wednesday, about $8.61 billion worth of positions were liquidated in the derivatives markets. As a result, the RO on OKEx fell from $2.1 billion to $1.3 billion. The spokesman added: Currently, there is no significant increase in open interest, indicating that the market lacks confidence. word-image-5332 Open interest in the BTC options market posted a record high on the 23rd. There was also a similar decline in May. It reached a 90-day low of $6.66 billion, down 55% from the high of $14.77 billion on the 18th. March. Luuk Strayers, chief commercial officer of crypto-currency exchange Deribit, told Cointelegraph: The collapse of BTC and ETH caused an increase in implied volatility and consequently in option premiums. Market makers adjusted their prices when realized volume exceeded implied volume. Since most large clients use our advanced portfolio margining system, liquidations do not usually take place at such a high level, as we are instead engaged in delta hedging. A look at the Deribit Implied Volatility Index (DVOL) provides an insight into expected volatility. It provides an annual forecast of volatility over 30 days. Strayers explained in more detail how DVOL can be used as a precursor to the markets. He said: DVOL would be a good sign of coming turbulence. Around midnight on Wednesday, before the fall, the DVOL began to rise. word-image-5333 The BTC price trend can be traced back to the 12th. Go back to May, when bitcoin dropped below $50,000. A spokesperson for OKEx Insights said Musk’s tweet caused strong fears in the cryptocurrency market, adding: The quarterly term premium has fallen from 3.5% to less than 1%. This indicates that the futures market was very cautious and did not expect a significant price increase. In contrast, the long-short ratio on OKEx, an indicator of trading sentiment in tokens, remained very high until the sell-off that began on Black Wednesday. This deviation from the normal trend indicates that the price will move in a direction unfavourable to retail investors. Shane Ai, in charge of crypto-currency derivatives research and development at Bybit, a crypto-currency derivatives exchange, told Cointelegraph: The options markets amplified the decline, especially when BTC prices broke through 45K and put writers were heavily liquidated. This resulted in 1) a huge jump in IV for all maturities and 2) the entire futures structure was sold at or below cash levels.

Nearly $3 billion in options expire on the 28th. May

Amid the long-awaited rise of cryptocurrencies, bitcoin and ether outperformed their peers on the 26th. May briefly exceeded $40,000 and $3,000 respectively. Ai went on to describe the contributing factors: The rebound was fueled by massive buying pressure in the cash market – as evidenced by Coinbase premiums of over 7% towards US trading hours – amidst continued negative refinancing rates in subsequent periods. Another event is scheduled for the end of May: the expiration of the major options. Friday the 28th. In May, 53,400 BTC options with a total value of more than $2.1 billion and ETH contracts with a total value of more than $880 million expired. With nearly $3 billion in expiring options, the data shows that bears dominate the term. word-image-5334 According to CoinOptionsTrack, the maximum pain price for expiring BTC options is $50,000. The maximum price is the price at which the largest number of option contracts suffer losses. Puts with a strike price of $50,000 have the most open interest, followed by puts with a strike price of $40,000. A slight rally on the eve of the expiration is possible, but the current market sentiment is not conducive to such a move. Strayers also stated: Many calls will expire on OTM [Out of The Money]; buyers of puts will find that their hedge or speculative puts have provided the protection they were looking for. An interesting level to keep an eye on could be the 40K level with an open interest of 2K puts. With the price of bitcoin currently hovering around $40,000, it will be interesting to see what the impact of this drop is and how it affects the price of the asset. With BTC volatility recently peaking at 2021, it is possible that we can expect further sharp price swings.As you’re probably well aware, the crypto market is still going through a rough patch. Indeed, the past few months have been a real rollercoaster ride for crypto traders, with weekly price swings of over $100 billion not uncommon, and the total market cap dropping $400 billion in just 24 hours. Prices, of course, have since gone back up, with Bitcoin experiencing a nice little recovery to around $10,000 – but this is still a far cry from the dizzying heights of late 2017.. Read more about bitcoin options expiry march 2021 and let us know what you think.

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