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Bitcoin price stalls in April, but $4.2B options expiry may revive run

As over $4 billion in BTC options contracts stand to expire, most options traders will feel “max pain,” while options writers could gain.

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What’s interesting about this particular options expiry is that the current max pain price for the expiry is $54,000, which is very close to the current trading price. The max pain price is the price at which most options are rendered worthless, thus leading to the loss of the option premium for the options holders. Although, in this situation, options writers stand to gain.

On April 29, over $4.2 billion worth of Bitcoin (BTC) options contracts will expire. This expiry comes after Bitcoin has seen a recovery from $48,000 to currently trade in the $54,000 range. The total open interest of Bitcoin options currently stands at $13.54 billion, with over 88% being on Deribit, the largest crypto derivatives exchange by both volume and market capitalization.

Cointelegraph discussed this with Robbie Liu, market analyst at OKEx Insights — the research team at cryptocurrency exchange OKEx. He stated that “A huge expiry alone does not indicate that the market is bullish or bearish, but it did restrain the price upswing when the previous quarterly options expired at the end of March. And after the delivery, the downward pressure was reduced.”

In fact, when looking at the max pain curve, it’s evident that it’s reasonably flat at the bottom. This means that the overall economic impact of an expiry at $48,000 is relatively comparable to that of an expiry at $62,000. Shaun Fernando, head of risk and product strategy at Deribit, told Cointelegraph: “On expiry, with the removal of the max pain point, this could lead to an easier deviation from the 54k level.”

According to data from CoinOptionsTrack, the put-call ratio for the expiry is 0.69. The put-call ratio describes the trading volumes of put options in relation to those of call options. A put option buyer has the right to sell the underlying asset at a predetermined price on a specified date, while a call option holder has the right to buy an asset at a predetermined price on a specified date. The put-call ratio is often used as an indicator of the sentiment that prevails in the market. If the value is above 1, it is looked at as an indicator to sell, while a value below 1 is seen as an opportunity to buy. Regarding the implications of the max pain theory in this expiry, Liu further elaborated:

“The current max pain price of the April 30 expired options is at $54,000, but it’s skewed by the impossible to reach $80,000 calls, which have the largest open interest at the moment. Market participants are currently more concerned about whether the large amount of puts located at $52,000 and $51,000 will expire with no value.”

Options expiry impact noticeable

While monthly options expiry dates are often significant events for their underlying assets due to the large size of the expiries, an expiry in and of itself is not a rare occurrence. There are multiple options with different expiry dates offered by various exchanges. For instance, the expiry on April 23 caused 27,000 BTC in options to expire. At the current price, this expiry was worth $1.45 billion. A large portion of this was about 2,500 put options at a strike price of $50,000, while the max pain price was at $58,000.

Liu explained that the impact of the April 23 expiry was seen directly in the price of Bitcoin: “Bitcoin experienced a lot of selling pressure last Friday and the price managed to get pushed below $50,000 at the time of option settlement, at 4pm HKT [8:00 am UTC]. Then it saw a rebound after that. We can’t know yet if the same scenario is going to repeat itself.”

While this impact is often evident in the short term, some investors believe it might be an overrated angle for analysis. Scott Melker, a crypto trader and analyst, told Cointelegraph:

“There’s been much debate about the effect of BTC options expirations and their effect on the market. Options are a fraction of the total market and are rationally unlikely to affect spot price dramatically, but that has not stopped traders and investors from waxing poetic about price suppression and ‘max pain’ into the expiration week at the end of each month.”

Ki Young Ju, CEO of crypto analytics firm CryptoQuant, told Cointelegraph: “Bitcoin’s options market is still relatively small for the expiry to have a sizable impact on the spot price.”

As the debate continues over the impact of the Bitcoin options market on the price of BTC in the long term, analyzing the price trends of the underlying asset shows an interesting aspect.

April price trend is lower than usual

Even though Bitcoin hit its all-time high of $64,900 on April 21, it saw a 27% drop almost immediately as its price fell as low as the $46,000 range. The flagship cryptocurrency has been recovering from this slump ever since. Considering only the trend in April, there has been a 5% loss in BTC’s price — which was not expected, considering its April returns over the past four years. Barring any dramatic price movements on April 30, this will be the first time in six years that BTC ends the month of April in the red.

Lui opined on this, saying: “Bitcoin has averaged a 30% return in April over the past four years. But the market leader returned much more in the first quarter of this year than in previous years. It’s not bad for Bitcoin to take a pause in April after the previous parabolic run.” Fernando further elaborated, referring to BTC’s gains during quarter one:

“Historically March would see large falls. Since that wasn’t the case this year, we can expect April to also break from convention. Also, it did not help this month with [United States President] Biden’s proposed higher capital-gains tax rates plans.”

However, the one-year gains for BTC currently stand at 604%, which is unprecedented, thus showing that 2021 has to date been an outstanding year for the asset. This mostly due to the rising attention given to Bitcoin and other top cryptocurrencies by both retail investors and institutional investors.

April has been no different in terms of continued institutional adoption of the asset. On April 21, Japanese gaming giant Nexus became the latest large corporation to invest in Bitcoin. It announced that it made a purchase of 1,717 BTC at a price of $58,226, which equates to a roughly $100 million investment.

The quarter-one earnings release for Tesla revealed that it booked a $101 million profit from the sale of BTC. While most perceived this as a positive development that showed the potential profits and liquidity of Bitcoin, some skeptics saw this as a sell-off and a broader call to sell Bitcoin. Tesla CEO Elon Musk was quick to point out that “Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet” and that he has personally not sold any of his Bitcoin.

Whales be whales?

One way to gauge institutional moves is through outflows from crypto exchange Coinbase Pro. The exchange normally integrates its custody wallets with its over-the-counter desks, which institutions usually trade through to minimize the impact on the spot markets. The outflows are seen as a representation of institutional activity in the BTC market.

According to CryptoQuant’s “BTC: Coinbase Pro Outflow” tracker, there were four significant outflows from Coinbase in April. It’s possible that this BTC went to Coinbase custody wallets for OTC deals.

Ju further elaborated: “Institutions like Tesla use Coinbase Prime brokerage to buy or sell BTC. It would be bulk orders that can affect BTC price. Coinbase premium has been negative/neutral for the past 7 weeks, but it turned positive lately, hitting an all-time high a week ago.”

The Coinbase premium gap measures the difference in the price of BTC on Coinbase Pro and Binance. The larger the gap — and the higher the premium — the stronger the spot buying pressure on Coinbase.

As Bitcoin continues to recover from its April mid-month slump, it’s evident that institutional interest in the asset is still on the rise despite the price volatility it has seen recently. While the upcoming $4.2 billion options expiry might not lead to much of an economic impact for options holders, it is highly likely that after the options expiry, the downward pressure on BTC will move away from the current max pain price of $54,000.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/bitcoin-price-stalls-in-april-but-4-2b-options-expiry-may-revive-run

Blockchain

Ethereum Classic Price Analysis: 6 May

Ethereum Classic is currently undergoing its largest bullish rally in 2021. Since the start of May, the asset has been up by 190% in the charts, registering a new all-time high at $118. The surge has

The post Ethereum Classic Price Analysis: 6 May appeared first on AMBCrypto.

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Ethereum Classic is currently undergoing its largest bullish rally in 2021. Since the start of May, the asset has been up by 190% in the charts, registering a new all-time high at $118. The surge has been incredible and true to its altcoin nature, extremely volatile. However, there are signs that the price is going to exhibit a strong correction over the next few days, with its momentum slowly dying out.

Ethereum Classic 6-hour chart

ETC/USDT on Trading View

The present analysis does not exhibit any proper patterns so the guidelines for a short-position are based on the Fibonacci lines calculated based on its previous top at $49.8. While ETC’s price should not have surged beyond $88 in the current rally, this particular range can now be considered an appropriate range for correction.

Breaching past its -1.272 Fib line, the rally is starting to slow down. Decreasing trading volume is a decisive sign at press time, as buying pressure is seemingly reducing in the 12-hour time frame.

Market Rationals

ETC/USDT on Trading View

Relative Strength Index is also tapering at a previous high range, which may indicate an eventual dump of buying pressure. Stochastic RSI is more uncertain but the selling pressure should be kicking in anytime in the chart.

On-balance Volume is currently higher than the end of April, and the chances of buyers selling for profit at this range are more likely than a week before.

Keeping the above narratives and range in mind, a short position can be entered at $115. An appropriate stop can be placed at $128, and distinguished by the Fib-line. Profits can be taken at any range between $88 and $74, but a correction to $74 should unfold over the next few days. While the Risk/Reward ratio is 3.08x, it is important to note that it is incredibly risky to short ETC at the moment, since buying pressure may invariably return if market sentiment triggers another rally.


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Source: https://ambcrypto.com/ethereum-classic-price-analysis-6-may

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Polkally – the low-cost and safe NFT marketplace

By the end of summer this year, the first protocol version of Polkally, a decentralized auction platform enabling creation and selling of non-fungible tokens (NFTs), will launch on the Polkadot Network and will be open for all, not just for art professionals.  It will bring with it a dedicated team of external experts that will […]

The post Polkally – the low-cost and safe NFT marketplace appeared first on BitcoinerX.

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By the end of summer this year, the first protocol version of Polkally, a decentralized auction platform enabling creation and selling of non-fungible tokens (NFTs), will launch on the Polkadot Network and will be open for all, not just for art professionals. 

It will bring with it a dedicated team of external experts that will carefully analyze smart contracts to ensure accuracy, if not perfection.

As for sales within its platform, only a minimal fee of 5% will be charged by Polkally. It will also have KALLY, its native token that can now only be bought through Uniswap, after its Initial Desk Offering (IDO) on ZeeDO and Poolz by mid-May.

More on Polkally

Polkally had a private sale of $700K worth of KALLY tokens. After that, these “digital assets” will only be available again on May 19 in a dual IDO. 

The goal is to raise at least $200K on each of the IDOs for a total of at least $400K. This should bring a total fundraising haul of $1.1 million, enough to make the project gain some visibility and significance. 

Polkally supports the creation of the most interoperable, user-friendly, and easy-to-use marketplace that values virtual artworks. 

As the project is still in the development phase, its current pool of networks is expected to grow with the addition of Tron, EOS, Binance Smart Chain, and many more. 

Polkally comes with key features like a dynamic auction system for selling artworks at reasonable prices, compatibility with EVM-compatible networks like Polkadot, and a decentralized “Know-Your-Customer” (KYC) based on IPFS.

Addressing common issues

The lack of interoperability, expensive fees, data vulnerability, and being too centralized are just some of the problems encountered today in existing NFT marketplaces.

Polkally addresses this issue with a minimal fee and no hidden charges while utilizing IPFS-based infrastructure to encrypt data for maximum protection.

 

Image courtesy of Polkally/YouTube

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://bitcoinerx.com/blockchain/polkally-the-low-cost-and-safe-nft-marketplace/

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Major Law Firm CMS Adds Stratis (STRAX) to its Legal Accelerator Program

Blockchain-based services company Stratis was selected to become the newest member of CMS’s legal accelerator program.

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The large law firm CMS selected the blockchain service company Stratis, for its equIP legal accelerator program. As a result, Stratis and CMS will offer support and guidance to startups requiring legal counsel.

CMS Adds Stratis to Accelerator Program

Founded in 1999, CMS is an integrated, multi-jurisdictional organization of law firms that offers full-service legal and tax advice. The firm has more than 70 offices in over 40 counties with nearly 5,000 lawyers.

In a press release shared with CryptoPotato, Stratis announced a partnership with CMS. The former is a blockchain-based project offering enhanced security, reliability, and performance through its DLT system.

This means that Stratis will join the law firm’s legal accelerator program called CMS equIP. The integration will enable the blockchain-based service company to “easily tap into CMS’s expert legal teams across the firm’s 70 offices worldwide.”

Stratis will also enjoy “steep” discounts and will be able to access the law firm’s network of investors, tech companies, and startups.


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The CMS equIP program will offer support to startups requiring legal counsel. However, they would need to pass “stringent” selection processes.

“We are please do welcome Stratis to the CMS equIP fold. It has and continues to set a remarkable track record in supporting new businesses and startups that are being built by some of the brightest minds in the country.

As we build a center of excellence for legal services specifically for blockchain companies, and in EmTech generally, Stratis will form an important part of this.” – commented Charles Kerrigan, CMS Partner.

Crucial Importance for Stratis

The statement outlined the “critical” benefits coming in Stratis’ way after receiving access to the “best legal advice in the world.” Furthermore, the partnership could also serve as a major first step towards bridging the gap between companies from within and outside of the cryptocurrency industry, especially in times when global regulations are looming.

Stratis Founder and CEO Chris Trew also highlighted the significance of this integration for this company:

“Being selected to become a member of CMS’s exclusive equIP program is a tremendous achievement for Stratis and a testament to the fantastic technology we have built and delivered. As the first blockchain-based project to be admitted to the program, I look forward to exploring opportunities and collaborating with other innovative equIP members.”

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Source: https://cryptopotato.com/major-law-firm-cms-adds-stratis-strax-to-its-legal-accelerator-program/

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Blockchain

Moma Protocol Completes $2.25M Round to Create Infinite Liquidity for DeFi Lending Markets

[Press Release – Singapore, Singapore, 6th May, 2021] Moma Protocol, an innovative solution to solve scalability, liquidity and speculation needs in the current DeFi lending market, has completed a $2.25 million dollar round of funding led by Fundamental Labs and SevenX Ventures. Moma Protocol creates, manages, accelerates, and aggregates lending markets through a proprietary smart […]

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[Press Release – Singapore, Singapore, 6th May, 2021]

Moma Protocol, an innovative solution to solve scalability, liquidity and speculation needs in the current DeFi lending market, has completed a $2.25 million dollar round of funding led by Fundamental Labs and SevenX Ventures.

Moma Protocol creates, manages, accelerates, and aggregates lending markets through a proprietary smart contract factory, creating an ecosystem that allows for the infinite expansion of lending liquidity and market diversity. Moma Protocol was incubated and supported by Lichang, a community App with over a million registered users. Since the protocol’s concept inception, the concept of “improving the scalability of the DeFi lending market” has been favored by the crypto market and recognized by the community.

The investors in this round include Fundamental Labs, a highly reputable blockchain fund that has invested in Coinbase, and also SevenX Ventures, which has over 100 successful investments in it’s portfolio, as well as other investors including AU21 Capital, Blocksync Ventures, BuildingBlocks, Coins Group, Consensus Investment, DFG Capital, FBG Capital, Finlink Capital, Lotus Capital, Magnus Capital, Moonrock Capital, Moonwhale Ventures, Oasis Capital, Spark Digital Capital, Waterdrip Capital, X21 Digital and Zee Prime Capital.  (Participating institutions in alphabetical order).

As an ecosystem with unlimited expansion of lending liquidity and market diversity, Moma Protocol can enrich the DeFi lending market by opening up new lending markets for long-tail digital assets.

SevenX’s spokesperson points out the reason for his bullish view on the Moma Protocol: “As the most important foundation pillar of DeFi architecture — the lending agreement, Moma has made a unique and permissionless innovation here, which greatly enriches the diversity of the market. It has huge potentials to become a scalable platform covering both the mainstream and long tail digital assets.”

Commenting on the investment in Moma Protocol, FBG’s founder Shuji Zhou said, “The DeFi market has seen explosive growth over the past year, with more and more assets being swept up in the DeFi wave. Moma Protocol meets the lending needs of long-tail assets by providing a proprietary smart contract factory that combines the strengths of Uniswap and Compound, to produce an unlimited number of customizable lending pools, thereby bringing more assets into the current lending market to increase the liquidity, diversity and scalability of the DeFi ecosystem, which is something to look forward to. ”

Moma Protocol’s Founder and CEO, Ocean Liao: “I believe that the goal that Moma Protocol wants to achieve is to create an expandable, scalable and flexible infrastructure for the DeFi world in 5-10 years, in a way that everyone can freely participate. I am optimistic about the DeFi ecology and the lending scenario, and I am happy to be able to drive Moma Protocol to explore the future with the infinite liquidity-generating factory model that fascinates me the most. We are ready to set sail!”

About Moma Protocol

As a solution to meet users’ demand for liquidity, scalability, and speculation needs in the DeFi lending markets, Moma Protocol produces, manages, accelerates and aggregates the lending market through a proprietary smart contract factory, creating an ecosystem that can expand infinitely in lending liquidity and market diversity. The beta version of the product has currently been online and the official version of the product will be live in Q2 2021.

Team

CEO Ocean

Master Degree at Fudan University, senior programmer, serial entrepreneur in the blockchain industry with solid experience in initiating projects such as Gravity (300,000 users), Lichang (1 million users), TokenUp wallet (100,000 users); respected veteran in the Chinese community.

CTO V.C

Master Degree at Fudan University, senior blockchain developer, independently led the development, testing, and deployment of two Ethereum-based DeFi projects, and was involved in the launch of the mainnet and application development of blockchain projects such as EOS, Platon and Worbli.

CMO Virginia

Co-founder of Coins Group, a crypto fund based in Hong Kong, 12 years of experience in digital marketing and internet start-up building; 4 years of experience in blockchain investment and project incubation, invested in over 30 blockchain projects

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Source: https://cryptopotato.com/moma-protocol-completes-2-25m-round-to-create-infinite-liquidity-for-defi-lending-markets/

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