As bitcoin’s price keeps setting new yearly highs, the question on everyone’s mind right now is whether it’s different this time. Let’s take a closer look at why this rally is nothing like the “bubble” in 2017. Bitcoin all-time performance. Source: coin360.com As many experts pointed out, BTC going above the key psychological $10,000 mark is likely to trigger FOMO (i.e., fear of missing out), according to Fundstrat’s Tom Lee, who adds that bitcoin can now easily take out its all-time highs. Other market analysts, such as Tone Vays, however, disagree. He told Cointelegraph: “I actually don’t think it’s important …
Mike Novogratz’s crypto investment bank Galaxy Digital is expanding its services to offer crypto options contracts trading, industry media outlet The Block reports on June 21. According to the report, Galaxy Digital’s new initiative is made in response to increasing demand from institutional investors in order to hedge the high volatility that is a calling card of crypto assets. Bitcoin (BTC) options are a type of crypto derivative that are a wide-spread method of profiting from a highly volatile market by strategically hedging risks such as reducing portfolio risks, and in turn, losses from trading. Similar to traditional finance, there …
The current outlook for the cryptocurrency market has been downgraded from mildly bullish to uncertain, SFOX’s latest volatility report concluded on June 6. While the report acknowledged that crypto prices recovered substantially last month, the authors described overall sentiment is at a tipping point — and warned it was unclear how much of the growth is due to FOMO (fear of missing out). SFOX echoed recent comments made by Digital Currency Group founder, Barry Silbert, and said bitcoin’s (BTC) rally on Monday, May 13 may have been linked to developments in the trade war between the United States and China. …
The head of digital assets at Susquehanna, a leading global privately held financial institutional firm, said that bitcoin (BTC) investment is “certainly speculative.” Susquehanna’s Bart Smith discussed the major cryptocurrency’s most recent moves in an episode of CNBC’s "Squawk Box" on May 30. Addressing the basic question of bitcoin’s high volatility, which some consider prevent it from being considered as a store of value or a reliable medium of exchange, Smith argued that bitcoin investments are speculative and risky. In the CNBC interview, the crypto expert looked at major factors that may have caused the recent bull move on the …
On May 17, bitcoin’s (BTC) price experienced a “flash crash,” dropping to $6,400 within minutes, which was triggered by a 5,000 BTC sell-off — equivalent to around $35 million at the time. An individual investor, speculated to be a whale — an investor holding a significant amount of bitcoin — is said to have placed a massive sell order on Bitstamp, a major bitcoin exchange based in Europe. The sell order caused the price of bitcoin on Bitstamp to briefly drop to $6,400, which then led contracts on BitMEX, popular bitcoin margin trading platform internationally, to be liquidated in a …
A crypto futures exchange says its features mean it is well-positioned to solve current problems that exist among rivals. The team behind FTX claims they were driven to act after “hours of feedback” to established exchanges about the problems with their products went ignored. As a result, the company claims that its platform “reduces the likelihood of clawbacks” through a three-tiered liquidation model — tackling the problem represented by “significant amount of customer funds on other derivatives exchanges that have been claimed by socialized losses.” In a blog post, the exchange explained: “FTX really does see clawbacks as a worst-case …
Hong Kong-based algorithmic crypto trading firm GSR launched cryptocurrency variance swaps, a product for hedging against volatility. The company announced the development in a press release published on April 24. Per the announcement, the variance swaps will allow investors, traders, businesses and other crypto portfolio holders to hedge against crypto volatility. According to Investopedia, a financial swap is a financial derivative used to speculate on the volatility of an asset. The launch announcement of bitcoin (BTC) and ether (ETH) variance swaps claims that the derivative is the easiest way to get exposure to the volatility of the underlying assets. The …
Brian Armstrong, CEO of major United States cryptocurrency exchange Coinbase, believes that crypto mass adoption mostly depends on volatility, scalability and usability. Armstrong made his claim during a live ask-me-anything (AMA) session on April 2. Armstrong ran the 45-minute AMA on Tuesday, answering selected questions submitted by the crypto community. Addressing the first question, on the potential for mass crypto adoption, Coinbase’s CEO said that a cryptocurrency can achieve mass adoption by improving scalability and usability, while reducing volatility. As per volatility, if the crypto markets keep swinging dramatically, it will be hard to get more traditional investors involved, Armstrong …
A decentralized peer-to-peer network says it is well placed to cater to the growing demand for crypto lending, and has unveiled new tool that allows users to borrow USD-backed stablecoins against cryptocurrency collateral. Nitrogen cites research from Bloomberg that shows how demand for loans backed by crypto collateral soared in 2018, as the price of Bitcoin and other coins began to decrease. It says its service enables users to “borrow and lend in a safe and transparent way” — with a range of intuitive features targeted at them on both sides of the transaction. The network enables borrowers to use …
A crypto exchange says it aims to offer “an exceptional user experience for all traders on its platform, regardless of their experience level,” delivering support for multiple languages and sharing revenue among users. Pukkamex argues that many of the services dominating the industry right now are clunky, slow and vulnerable to crashing during crucial trades, something that can be disastrous for seasoned traders when prices are volatile. The company claims that its infrastructure eliminates unscheduled outages, meaning trades “will always be processed instantly, even during times of peak demand.” The exchange says that its support for multiple languages is one …
This sponsored article has been removed due to noncompliance with Cointelegraph’s internal policies. We apologize for the following situation. 03/19/2019 at 10:10 a.m. PST — This sponsored article was published. 03/19/2019 at 10:20 a.m. PST — We were internally notified that this project might be considered as “questionable”. We decided to conduct a second background research. The task was assigned to the Legal Department for additional due diligence, which indicated that the project doesn’t comply with Cointelegraph’s policy. 03/20/2019 at 9:00 a.m. PST — This sponsored article was removed. Due to this unpleasant incident, we have strengthened our review process …
Volatility coupled with one of the longest bear markets ever experienced by the cryptocurrency industry have compelled many investors to consider staking as a method of “playing it safe,” according to a Bloomberg article. Staking, which is similar to earning dividends or interest on your investment, is not a new concept. However, in a long bear market, it does become more prevalent among cryptocurrency investors, as possible gains from regular trading are not as fruitful. As Kyle Samani, managing partner at Multicoin Capital Management, stated to Bloomberg: “Regardless of market conditions, staking provides returns denominated in the asset being staked. …