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Bitcoin Futures Volume on CME Soars as Bakkt Debut Nears

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Bitcoin futures

Cryptocurrency exchanges that are wondering where the bitcoin trading volume has gone may want to consider expanding into derivatives trading. The CME has experienced exponential growth in its bitcoin futures trading volume this summer, as evidenced by a doubling of activity in July and similar momentum this month. CME month to date has generated “daily futures volumes of 30,000 bitcoin equivalent”, as per the FT, despite the meager performance in the bitcoin price.

In fact, bitcoin futures trading volume on CME outpaced that of its rival the CBOE, the latter of which debuted bitcoin trading futures contracts first and whose August daily futures volume is in the doldrums at 5,000, as well as spot market trading in bitcoin on popular cryptocurrency exchange Coinbase, where trading volume hovers at 11,000-plus BTC, according to the Financial Times.

Courtesy: Financial Times

Bakkt Says No Leverage, No Margin Trading

The CME and CBOE have been jockeying for market share in the bitcoin futures market since year-end 2017, and now they’ll have another exchange to contend with — the Intercontinental Exchange, or ICE and its new Bakkt exchange, which is set to make its debut in November. It’s been a couple of weeks since the Bakkt announcement and Kelly Loeffler, who is at the helm of the new company, said that the exchange was formed in response to an “evolving market”, one in which “price discovery” for the bitcoin price is at the center.

On Bakkt, trading in bitcoin futures is “fully collateralized or pre-funded,” said Loeffler, adding that margin and leverage are not allowed.  “This supports market integrity and differentiates our effort from existing futures and crypto exchanges which allow for margin, leverage and cash settlement,” according to Loeffler in a blog post. The margin requirements for bitcoin futures on the CME and CBOE are 35% and 40%, respectively, according to reports.

Meanwhile, the CBOE isn’t sitting idly by and has restructured its bitcoin futures terms in an attempt to bolster volume. According to the FT, the CBOE lifted the limits on the number of XBT futures contracts a trader could have fivefold to better resemble the opportunity at the CME. According to a regulatory filing with the CFTC, the CBOE did this to “promote competition between CFE’s market for XBT futures and CME’s market for bitcoin futures by providing for more of a level playing field in terms of the position levels that can be held in both products.”

We will have to wait and see which concessions, if any, derivatives exchanges make when there’s another player on the block, Bakkt.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 70 rated postsGerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She's also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing. She owns some BTC and ETH.




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Altcoins

Lisk (LSK) Pushing for Momentum as Marketing Chief Responds to Over-Hyped Claims

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Lisk (LSK) trailed on the edges of Tuesday’s altcoin surge which saw more than a dozen alts increase by between 7% and 40% in value.

One day previously, the project’s head of marketing, Thomas Schouten, took to Reddit to respond to the recent assessment by William Mougayar that Lisk was among multiple blockchain projects which he regarded as ‘over-marketed’.

Mougayar is a venture investor and advisor, and author of The Business Blockchain, which boasts a foreword by Vitalik Buterin. Shouten’s regard for Mougayar’s opinion was such that he felt compelled to respond to the criticism.

Is Lisk Over-Marketed?

As you can see from Mougayar’s graphic, Lisk joins the likes of EOS, Tron and XRP (here referred to as Ripple) in the over-marketed category. Mougayar stated:

“I’ve classified some projects in 3 buckets: Right, Under & Over Marketed. It is based on their own or community-driven activity. I understand some will push back, but this is how I view the market today.”

The tweet followed the author’s post from the previous day titled ‘Marketing Strategies and Practices for Blockchain Projects and Startups’. The post makes a nifty read for those interested in the marketing side of blockchain; why more money doesn’t always breed more success (he’s looking at you, EOS); and the difference between branding and visual identity.

“Over-marketed means the claims are ahead of delivery or being hyped. Under-marketed means the potential of the product is not well messaged into the market.”

Many of the tweet’s 130 comments came from disgruntled coin holders intent on defending their respective projects – in response to which Mougayar added:

“…the classification has nothing to do with the products/services of these companies… I didn’t include all blockchain projects, but selected ones that I was familiar with and that were significant enough to use as a representative sample.”

Lisk Head of Marketing Responds

The response by Lisk’s Thomas Schouten was less hostile than you might expect. He conceded that Lisk had indeed been over-marketed to an extent:

“William’s definition of over-marketed is “claims are ahead of delivery or being hyped”. To a certain degree, I agree with his judgement… I feel that too often our team has predicted progress that could not be delivered in the end. We have learned from this the hard way.”

However, Schouten also pointed out that many of the so-called ‘right-marketed’ projects happened to be exchanges, while most ‘over-marketed’ projects happened to be platforms.

“Coincidence? No. To me, comparing an exchange (for-profit) with a working product and profitable business model, to open-source blockchain platforms in development (non-profit) is comparing apples with pears.”

Lisk Price

While LSK did record 3.3% gains against the dollar, and over 4.4% against BTC on Tuesday, momentum was hard to come by. LSK/BTC on Binance moved from $0.0003368 up to $0.0003518, while the dollar valuation rose from $1.19 to $1.23.

The daily trade volume of $3.6 million was a $400,000 increase from the previous day – not insignificant, but nowhere near the trade influx seen by some of the day’s major movers.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 125 rated postsGreg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home.




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Bitcoin

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Good Things Happen to Those Who Wait

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  • Signs of weakness appear while playing on the edge.
  • ETH/USD must lead now or suffer for months.
  • BTC/USD does not work for either side of the market.

The most rising value right now is patience. In a world where everything goes faster than our mind is capable of handling, patience is today a value that is not taught and even less praised.

However, in professional trading, being patient is an asset as valuable as money. They are directly correlated, the less patience, the less performance, and vice versa.

As one of our contributors, known as Colibri Trader, wrote:

Some traders fail to realize that to be successful will take time. They often fall prey to their own impatience in the hope of earning fast money. It could be a rough environment, and charts might be hard to read, so it is wise at times to step back in order to avoid costly mistakes. Don’t rush things out, or try to enter in a trade at all costs by just following your gut. The market could be quite tricky and often does send out the wrong signs. Wait patiently for the best opportunities to align themselves and then act mercilessly.

ETH/BTC Daily Chart

The ETH/BTC pair insists on testing analysts’ patience with their dangerous game on the edge of the bearish landscape. The setup says with clarity, perhaps excessive, that this point will not be passed and that this is the best point to enter long into the Ethereum.

The MACD in the daily range is turning bullish just above the line dividing the upside of the bearish side of the indicator. The DMI shows the bears with a slight advantage, but the fact that the bulls stay above level 20 adds bullish potential.

Perhaps too evident, although sometimes the market gifts money.

BTC/USD 240 Minute Chart

BTC/USD is currently trading at the $3,505 price level, moving away from the $3,530 price congestion resistance line.

Below the current price, the next support level is $3,460 (price congestion support). This price level separates the current, lateral scenario with the openly bearish scenario that the BTC/USD pair has already visited the first week of December. The loss of this level of support would mean moving quickly to the third level of support at $3,300 (price congestion support).

Above the current price, the first target is at $3.530 (price congestion resistance). The second resistance level is at $3,600 (price congestion resistance) and only a few dollars above the EMA50 at $3,609. The third resistance level is at $3,690 (price congestion resistance). If BTC/USD can conquer this price level, the strength of the bullish trend would quickly be tested with the SMA100 at $3,708 and then the SMA200 at $3,772.

The MACD on the 4-hour chart shows a flat profile that projects an imperfect trajectory towards an upward cut. This pattern usually produces bearish rejects.

The DMI on the 4-hour chart shows bears picking up inertia and increasing their trend strength. The bulls lose power and move below level 20, confirming the weakness of the buying side. The ADX begins to react to the bear’s dominance and confirms the increase in bearish trend strength.

ETH/USD 240 Minute Chart

ETH/USD is currently trading at the $117 price level, just below the $118resistance level (price congestion resistance).

Below the current price, the first support level is at $109.50 (price congestion support). Should the Ethereum lose this first support, the next support is at $105 (price congestion support). The third level of support is at $97 (price congestion support).

Above the current price, the first level of resistance is at $118 (price congestion resistance). Above this first resistance the most critical area of the graph is presented immediately, with a second dynamic resistance at $122 (EMA50) that would give way to a rock wall at the price level of $130 (price congestion resistance) and reinforced by the SMA100 at $131 and the SMA200 at $133.

The MACD on the 4-hour chart shows a profile similar to that of the BTC/USD pair although in this case with a little more bullish inclination and therefore, more chances of success on the bullish cross.

The DMI on the 4-hour chart also shows differences from the BTC/USD. Here the bears follow a downward trend while the bulls remain at the same level in the last few days.

XRP/USD 240 Minute Chart

XRP/USD is currently trading at the $0.317 price level, above the $0.31 support level. Of the TOP 3 components of the crypto market, XRP is the one with the best technical aspect.

Below the current price, the first level of support is $0.31 (price congestion support), followed a little lower by the second level of support at $0.308 (price congestion support). The third level of support is at $0.296 (price congestion support), a level that would already indicate a return of the XRP to the fully bearish scenario of early December.

Above the current price, the first resistance level is dynamic at $0.327(EMA50). The second resistance level is at $0.335 (price congestion resistance), followed by an obstacle race for the SMA100 at $0.34, a price congestion resistance at $0.345 and another dynamic resistance at $0.365(SMA200).

The MACD on the 4-hour chart shows that there was a small bearish reversal yesterday. A second bullish cross attempt may occur today.

The DMI on the 4-hour chart shows the bears in an apparent decline. The bulls copy and withdraw as well, which shows a lack of confidence on both sides of the market.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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Altcoins

What Joe Rogan and His Billions of Viewers Have Learned About Bitcoin, Crypto and Blockchain

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Podcast powerhouse Joe Rogan has been dipping his toes into cryptocurrency ever more frequently since Andreas Antonopoulos made his first of four appearances to date on the show back in early 2014.

In the intervening years, a potential billion monthly listeners have frequently been exposed to informative, educational, and sometimes controversial, cryptocurrency conversations on the podcast platform. These have been conducted by blockchain evangelists (Dr. Ben Goertzel) as well as hardcore skeptics (Peter Schiff), and have explored a plethora of crypto and blockchain’s potential uses.

So, amid the cacophony of opposing thought and opinion the largest media platform in the world has exposed its viewers to, just what will the JRE viewers have taken away from the podcast’s crypto-centric episodes?

The Good

Crypto fundamentalists would have been more thrilled with Anton Antonopoulos’ appearances on the show than blockchain fanatics. Antonopoulos makes no secret of his desire to see crypto shake up the existing global financial paradigm, and Rogan’s somewhat lefty/hippy nature assured he received these ideas enthusiastically.

“All you creeps that are controlling money all throughout the world… your time is slowly closing in. Am I right?”

That’s the question with which Joe Rogan opened JRE #844 – Antonopoulos’ fourth appearance on the show. Andreas answered with a simple ‘Yep’, and went on to explain the phenomena which saw the banking industry make a (devious?) move into the blockchain world:

“ (In 2015) The media was constantly bashing Bitcoin. And then… we saw this interesting phenomena where the banks started getting interested…not in Bitcoin, but in blockchain – the technology behind Bitcoin.”

The best side of cryptocurrency – its potential to wrestle financial control from the hands of our global banking overlords – is best displayed during Antonopoulos’ appearances on the show, and are worth a listen for his wonderful analogies alone:

It’s rather amusing. I look at that a bit like the Horse-Buggy Association of America is going: ‘we like this automobile thing you’ve designed, but we have a very big investment in hay and horses, stables and veterinarians, so we’re going to use the technology behind the automobile – the pneumatic tyre – and we’re going to revolutionize horse-buggies.’”

The Bad

Perhaps the worst side of cryptocurrency to be exposed on JRE is its tendency to find itself the target of hackers and thieves. More than once Rogan and guests have brought up some of the ridiculous sums of cryptocurrency stolen in recent years, and the conversations usually end with a hopeful plea that one day ‘they’ll find out how to make it more secure’.

Of course, the vast, vast majority of crypto thefts to date have taken place on exchanges. Holding this up as an example of crypto’s lack of security is like blaming a car for getting stolen, even though you left it out in the middle of the road with the engine running – or worse – placed the keys in the hand of the thief yourself.

The Ugly

The ugly truth which investment broker and financial commentator, Peter Schiff, thought he was unveiling on JRE went something like this: Bitcoin has no value; Bitcoin is doomed; Buy more gold. On JRE #1145, Schiff said:

“Bitcoin is trying to digitally replicate the properties of gold. That’s the whole selling point – they say it’s digital gold. And it does have a lot of gold’s properties which help it succeed as money, but it doesn’t have any of gold’s physical properties that gave it so much value in the first place.”

Schiff also caused a stir back in July 2018 when he placed a $1,000 price prediction on BTC, and ridiculed its ‘fake scarcity’. Despite Schiff’s pessimism, and the furore that his appearances always cause, he has probably added some much needed healthy skepticism to the podcast over the years – even though most here would disagree with him completely.

The Future

With Andreas Antonopoulos slated to re-appear in the coming months – his first appearance in over two years – it will be interesting to get his take on the ICO madness of 2017-2018, the market’s ATH, and its subsequent drop-off since then.

Whether you’re a fan of JRE or not, the podcast might end up playing a bigger part than most in spreading crypto and blockchain awareness around the globe.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 125 rated postsGreg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home.




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