Amid Bitcoin touching five-month lows near $30,000, JPMorgan Chase analysts suggested that large institutional investors are now dumping Bitcoin (BTC) in favor of gold. In its Tuesday note to clients, JPMorgan suggested that institutional investors are going back to gold, reversing a major bullish cryptocurrency market action that drove Bitcoin's price above $64,000 in mid-April. Citing open interest data in Bitcoin futures contracts on the Chicago Mercantile Exchange, the American megabank said that BTC futures now saw the first biggest decline since the bull market that started in late 2020: “The bitcoin flow picture continues to deteriorate and is pointing …

Luis de Guindos, vice president of the European Central Bank, has dismissed the value proposition of cryptocurrencies as investment assets. Speaking to Bloomberg TV, the ECB vice president remarked that crypto should not be seen as a real investment. “When you have difficulties to find out what are the real fundamentals of an investment, then what you’re doing is not a real investment,” de Guindos argued, adding: “This is an asset with very weak fundamentals, and that is going to be subject to a lot of volatility.” According to de Guindos, the current market drawdown is not different from the …

The crypto sector is in a bull market, and frequent evidence comes from anonymous traders who post their five-, six- and seven-figure investment returns as screenshots on Crypto Twitter. This condition creates a FOMO-like situation where everyone gets greedy. The temptation to boost potential earnings by twenty times or more is often irresistible for most novice traders. Today, almost every cryptocurrency exchange offers leveraged trading using derivatives. To enter these markets, a trader has to first deposit collateral (margin), which is usually a stablecoin or Bitcoin (BTC). However, unlike spot (regular) trading, the trader cannot withdraw from a futures market …

Major United States-based cryptocurrency exchange Gemini has experienced two service disruptions on Monday and is now reporting degraded performance in its mobile app, web interface and application programming interface. According to an update on the Gemini status page, the crypto exchange began investigating reports of potential service disruptions at 13:24 EST on Monday. Though the exchange said it had restored all of its services only minutes later, Gemini reported another service disruption a few hours later, saying its systems were “experiencing degraded performance” due to an undetermined cause. At the time of publication, deposits and withdrawals of all tokens supported …

During an interview with Bloomberg TV on May 3, Binance CEO Changpeng Zhao suggested that Bitcoin (BTC) "is probably less volatile" than the stock prices of Apple and Tesla. Zhao argued that crypto's volatility was not unlike the stock market, adding that "Volatility is everywhere" and that "It is not unique to crypto." However, those involved in cryptocurrency trading probably know that cryptocurrency prices fluctuate a lot more than exchange-listed trillion-dollar companies. This begs one to question whether or not Zhao is detecting a trend that some may have missed. The first obvious reading from the chart above is that …

Binance CEO Changpeng Zhao has commented on the volatility of Bitcoin (BTC), stating that the largest crypto by market capitalization is probably less volatile than the stock prices of similarly-sized companies by market capitalization such as Apple and Tesla. Data from Woobull shows Bitcoin’s 60-day volatility steadily declining since the start of 2021. However, figures from the investment research portal AlphaQuery show that Tesla and Apple stock prices still have significantly lower 60-day volatilities over the same period. Speaking during an interview with Bloomberg TV on Monday, the Binance chief argued that crypto’s volatility was not unlike the situation in …

A number of venture capital giants have completed a financing round for Ethereum-based volatility and derivatives protocol Volmex Finance. According to a March 17 announcement from Volmex Labs, the financing round was contributed to by several leading decentralized finance venture capital firms including Alameda Research, Three Arrows Capital, Robot Ventures, CMS Holdings, IOSG Ventures, D64 Ventures, and Fourth Revolution Capital in addition to a number of individual angel investors including BarnBridge's Tyler Ward. The amount raised was undisclosed. 4RCapital co-founder Keegan Selby posted on Twitter: “Extremely excited to back Volmex Finance as they introduce volatility indices, a core financial primitive …

Betting on an $80,000 Bitcoin call options for June doesn't seem outrageous given BTC's bullish performance over the past few weeks. This was not the case a couple of months ago when BTC peaked at $42,000 on Jan. 8 and subsequently dropped to the $30,000 level. At that time, a 150% upside was needed from the $32,000 price on Jan. 26, and this seemed quite far-fetched. Therefore, the June $80,000 BTC call (buy) options traded at Deribit for $2,240, or 0.07 BTC. Less than two months later, as BTC reached $61,700 on March 13, the same call option peaked at …

A fully collateralized DeFi lending platform has announced that it is planning to launch on Binance Smart Chain this month. Apollo Protocol says its aim is to mitigate the risk of volatility in the crypto markets — something that often deters financial institutions and retail investors from entering the space. The project pointed to the dot-com bubble of the 1990s, when many companies were regarded as too risky to invest in. Fast forward to 2020, and some of these firms have become household names and blue-chip stock options. The platform aims to create an environment where growth and stability are …

A senior analyst at asset management firm Bridgewater believes that regulation could potentially make Bitcoin (BTC) a good asset for institutional investors. Bridgewater director of investment research Rebecca Patterson claimed that regulatory certainty around Bitcoin would solve some of the cryptocurrency’s biggest problems associated with high volatility and low liquidity. In a Feb. 24 interview with Bloomberg, Patterson said that issues like volatility and liquidity remain the main hurdles for Bridgewater’s potential move into Bitcoin. “Right now Bitcoin can move 10% on a tweet, that’s not exactly a store of wealth for most institutional investors. So the volatility of Bitcoin …

Amid a major downward correction in the cryptocurrency market, the head of South Korea’s central bank is skeptical about digital currencies like Bitcoin (BTC). Bank of Korea Governor Lee Ju-yeol said that crypto assets like Bitcoin have no intrinsic value, local news agency Yonhap reports Tuesday. The official said that he expects more price swings on the market, stating, “It is very difficult to predict the price, but its price will be extremely volatile.” Speaking at the National Assembly, Lee also addressed possible reasons behind the recent sharp crypto rally, which led Bitcoin to become a $1 trillion asset. The …

In a recent video debate, Bitcoin skeptic Frances Coppola debated Bloomberg senior commodity strategist Mike McGlone on the economics of Bitcoin, market manipulation and predictions for 2021. Coppola is skeptical that Bitcoin will ever succeed as a store of value because of its high volatility which, according to her, is a direct consequence of the asset’s fixed supply rate. “With a fixed rate of increase of supply (...) the only thing that can adjust to changes in demand is price”, she explained. Demand fluctuations mean Bitcoin's volatility is here to stay. McGlone, on the other hand, thinks that the fixed …