Novice traders are usually drawn to futures and options markets due to the promise of high returns. These novice traders watch influencers post incredible gains and at the same time multiple advertisements from derivatives exchanges that offer 100x leverage are at times irresistible for most. Although traders can effectively increase gains by recurring derivatives contracts, a few mistakes can quickly turn the dream of outsized gains into nightmares and an empty account. Even experienced investors in traditional markets fall victim to specific issues in cryptocurrency markets. Cryptocurrency derivatives function similarly to traditional markets because buyers and sellers enter into contracts …

Cryptocurrencies broke the $1 trillion market capitalization resistance on Oct. 26, which had been holding strong for the previous 41 days. Despite Bitcoin’s (BTC) modest 5.5% weekly gains, the aggregate value of 20,000 listed tokens increased by 8.5% between Oct. 24 and 31. The cryptocurrency market was positively impacted by a 6.3% weekly rally in the Russell 2000 mid-capitalization stock market index. Some encouraging news accompanied the positive tailwinds from traditional markets. For instance, 55,000 BTC was withdrawn from Binance on Oct. 26, a record high. Typically, analysts consider the reduced number of coins deposited on exchanges a bullish indicator, …

A $250 surprise rally took place between Oct. 25 and Oct. 26, pushing Ether (ETH) price from $1,345 to $1,595. The movement caused $570 million in liquidations in Ether’s bearish bets at derivatives exchanges, which was the largest event in more than 12 months. Ether price also rallied above the $1,600 level, which was the highest price seen since Sept. 15. Let’s explore whether this 27% rally over the past 10 days reflects any signs of a trend change? It is worth highlighting that another 10.3% rally toward $1,650 happened three days later on Oct. 29, and this triggered another …

Bitcoin (BTC) rallied on the back of the U.S. stock market's 3.4% gains on Oct. 28, as the S&P500 Index rose to its highest level in 44 days. In addition, recently released data showed that inflation might be slowing down, which gave investors hope that the Federal Reserve might break its pattern of 75 basis-point rate hikes after their November meeting. In September, the U.S. core personal consumption expenditures price index rose 0.5% from the previous month. Although still an increase, it was in line with expectations. This data is the Federal Reserve's primary inflation measure for interest rate modeling. …

The past eighty days have been moderately bearish for cryptocurrencies as the altcoin market capitalization declined by 16%. The downside movement can be partially explained by the U.S. Federal Reserve’s quantitative tightening, rising interest rates and halting of asset purchases. Although they are aimed at curbing inflationary pressure, the policy also increases the borrowing costs for consumers and businesses. Solana's (SOL) downfall has been even more brutal, with the altcoin facing a 29% correction since August. The smart contract network focuses on low fees and speed, but the frequent outages highlight a centralization issue. The latest setback occurred on Sept. …

In recent years, futures have started to play a pivotal role in the crypto markets. Yet if many of us were asked to explain what perpetual futures are, we'd break out into a cold sweat. Andrew Weiner, VP of MEXC, is on hand to explain how crypto futures work, what they're used for, and provide some fascinating statistics about how large this market actually is. 1. Hello! First off… can you give us a basic definition of what crypto futures are? So basically, a futures contract is an agreement to buy or sell a commodity, currency or another instrument at …

Ether (ETH) price has been unable to close above $1,400 for the past 29 days and it has been trading in a relatively tight $150 range. At the moment, the $1,250 support and the $1,400 resistance seem difficult to break, but two months ago, Ether was trading at $2,000. The current price range for Ether simply reflects how volatile cryptocurrencies can be. From one side, investors are calm as Ether trades 50% above the $880 intraday low on June 18. However, the price is still down 65% year-to-date despite the most exciting upgrade in the network's 7-year history. More importantly, …

Cryptocurrency traders were caught by surprise after the Oct. 13 consumer price index report showed inflation in the United States rising by 0.6% in September versus the previous month. The slightly higher-than-expected number caused Bitcoin (BTC) to face a 4.4% price correction from $19,000 to $18,175 in less than three hours. The abrupt movement caused $55 million in Bitcoin futures liquidations at derivatives exchanges, the largest amount in three weeks. The $18,200 level was the lowest since Sept. 21 and marks an 8.3% weekly correction. It is worth highlighting that the dip under $18,600 on Sept. 21 lasted less than …

Traders’ sentiment about Ether (ETH) has noticeably improved as the price rallied 7.5% from Oct. 2 to Oct. 6, but the price recapturing the $1,350 level was not compelling enough to trigger any bullish activity from derivatives traders. Ether price is still 32% below the $2,000 level last seen on Aug. 14 and the network’s average transaction fee stood near $2 after the Merge. The most significant upgrade on the Ethereum chain happened on Sept. 15, switching from energy-intensive mining technology to a set of validators required to deposit 32 ETH in staking. Although necessary to implement future sharding or …

The United States Commodity Futures Trading Commission, or CFTC, filed a complaint against Digitex LLC and its founder and CEO Adam Todd for failing to register the cryptocurrency futures exchange and manipulating the price of its DGTX token. According to a Sept. 30 court filing in the Southern District of Florida, Todd allegedly pumped up the price of DGTX tokens in an effort to inflate Digitex’s holdings. The U.S. regulator claimed the Digitex CEO used different corporate entities as part of a scheme to launch and operate an illegal digital asset derivatives trading platform, in violation of the Commodity Exchange …

111 days have passed since Bitcoin (BTC) posted a close above $25,000 and this led some investors to feel less sure that the asset had found a confirmed bottom. At the moment, global financial markets remain uneasy due to the tension in Ukraine increasing after this week’s Nord Stream gas pipeline incident. The Bank of England's emergency intervention in government bond markets on Sept. 28 also shed some light on how extremely fragile fund managers and financial institutions are right now. The movement marked a stark shift from the previous intention to tighten economies as inflationary pressures mounted. Currently, the …

Cryptocurrencies have been in a bear trend since mid-August after they failed to break above the $1.2 trillion market capitalization resistance. Even with the current bear trend and a brutal 25% correction, it has not been enough to break the 3-month-long ascending trend. The crypto markets' aggregate capitalization declined 7.2% to $920 billion in the 7 days leading to Sept. 21. Investors wanted to play it safe ahead of the Federal Open Markets Committee meeting, which decided to increase the interest rate by 0.75%. By increasing the cost of borrowing cash, the monetary authority aims to curb inflationary pressure while …