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“Structural” shift in crypto options shows there’s an influx of long-term Ethereum bulls

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This Exchange News was brought to you by OKCoin, our preferred Exchange Partner.

Over the past few months and years, financial derivatives like options and futures have become increasingly important to crypto. As a result, the data these markets have shown more and more about which way traders are leaning.

Case in point: Just recently, it was reported by a top options exchange that investors are starting to get long-term bullish on Ethereum.

Deribit reports investors are buying long-term Ethereum calls

In derivatives exchange Deribit’s latest weekly report, it was revealed that there have recently been “structural changes in [the] options market” for Bitcoin and Ethereum.

The company noted that along with trading volumes rising, there has also been an influx in “long-term call buying” with ETH.

Call options, as Investopedia describes, are financial contracts that “give the buyer the right, but not the obligation” to buy the asset “at a specified price within a specific time period.”

Basically, what Deribit is saying is that there is a growing number of traders that are long-term bullish on Ethereum, despite the fact that ETH is still around 80 percent below its all-time high set in 2018.

Other data sets confirm the growing sentiment amongst Ethereum investors to accumulate.

As reported by CryptoSlate previously, blockchain analytics firm Santiment found that there has been a strong increase in accumulation by some of ETH’s “whale” addresses over the past few weeks.

Ethereum

Chart of ETH whale holdings from blockchain analytics firm Santiment

“ETH whale addresses have just hit a 10-month high with the cumulative holdings of the top 100 non-exchange wallets now owning over 21,800,000 Ethereum,” Santiment wrote.

There are reasons to be bullish on ETH

Although it is basically impossible to tell why Deribit traders, in particular, are suddenly accumulating ETH call options, there is a confluence of fundamental reasons why analysts are suddenly bullish on Ethereum.

Mythos Capital founder Ryan Sean Adams recently remarked that ETH is “doubly” undervalued, as CryptoSlate reported earlier this week.

Adams largely attributed his bullish sentiment to the image below, which shows that the price of ETH has been closely correlated with the transaction fees Ethereum users pay to get their transactions processed over the past four or five years.

Ethereum transaction fees have spiked over recent weeks alongside Bitcoin fees, suggesting that ETH has room to rally to the upside.

ETH Price Vs Ethereum Blockspace Fees

ETH Price Vs Ethereum Blockspace Fees

Alongside the increasing usage of Ethereum, analysts have seen the fundamental case for decentralized finance increase massively over the past few weeks as central banks have grown increasingly “dovish” with policy due to COVID-19. 

This is a trend that Ethereum will benefit from due to it being the de-facto go-to blockchain for DeFi applications.

This Exchange News was brought to you by OKCoin, our preferred Exchange Partner.

Posted In: Ethereum, Analysis

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Source: https://cryptoslate.com/structural-shift-in-crypto-options-shows-theres-an-influx-of-long-term-ethereum-bulls/

Blockchain

Bitcoin SV is Up 21% This Week And Nobody Has a Clue Why

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  • Bitcoin SV, the controversial blockchain token promoted by Craig Wright, has surged by 21 percent in just two days.
  • The wild price rally surfaced as Bitcoin, the leading cryptocurrency token, jumped above $9,300 after a week of rangebound action.
  • Nevertheless, the extent of Bitcoin SV’s rise surprised, given the move had no solid catalysts backing it.

Bitcoin SV added about $60 million to its market capitalization in just two days of trading. As a result, the cryptocurrency’s per token rate against the US dollar surged by circa 21 percent. It also rose by about 19 percent against the top digital currency Bitcoin.

It’s not just Bitcoin SV, though. The entire top-10 brass of cryptocurrency returned little-to-major gains. Bitcoin, for instance, jumped by close to 3 percent. Its rivals, including Ethereum, XRP, Bitcoin Cash, and EOS, rallied in a 2-15 percent range.

bitcoin sv, bsvusd, bsvbtc, bsvusdt, cryptocurrency, crypto
Bitcoin SV (BSV) price correcting lower on Tuesday. Source: TradingView.com
Bitcoin SV (BSV) price correcting lower on Tuesday. Source: TradingView.com

But Bitcoin SV’s gains surprised. They appeared overtly higher than their peers even for a Bitcoin-tailing rally. Meanwhile, they came almost without solid catalysts – something that could explain why traders pumped Bitcoin SV by $60 million overnight.

Thin Liquidity

One of the significant reasons why altcoins perform exceptionally well on special days is inferior liquidity. Compared to Bitcoin, Bitcoin SV remains a thinly-traded coin despite maintaining its position in the top-ten cryptocurrencies.

That shows the involvement of lesser market participants – a few actors create an artificial demand for the asset to take advantage of day traders.

One analyst noted in back in January 2020 that Bitcoin SV has a smaller market presence following its delisting across several top exchanges last year. That left the cryptocurrency in the hands of smaller, unregulated exchanges – a hotbed for pump-and-dump crypto schemes.

“Much easier to pump shitcoin on 3rd rate exchanges with low liquidity,” the analyst wrote.

Bitcoin SV Outlook

Such risks don’t deter long-term BSV believers from holding the token. People who believe that the Bitcoin SV’s creator Craig Wright is the real Satoshi Nakamoto keeps attempting to grow their community on social media.

Calvin Ayre, an online casino billionaire with business interests in Bitcoin SV, can be seen commenting under the Twitter posts, promoting Bitcoin SV as the “original Bitcoin” all the time.

The coin also has a dedicated website CoinGeek.com that constantly keeps updating readers about its infrastructural growth.

But then, there are observers who think Bitcoin SV does not even deserve to be in the top-ten. Tom Shaughnessy, the founder of Delphi Digital, made that clear in his Monday tweet, wherein he accused Bitcoin SV of being a “choppy block.”

“Any project worth billions that had years to deliver and didn’t is on the chopping block,” Mr. Shaughnessy said. They’re really not worth billions, given a sizeable sale would impact the books.”

Bitcoin SV was trading more than 4.17 percent lower on Tuesday.

Photo by Juan Rumimpunu on Unsplash

Source: https://www.newsbtc.com/2020/07/07/bitcoin-sv-is-up-21-this-week-and-nobody-has-a-clue-why/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-sv-is-up-21-this-week-and-nobody-has-a-clue-why

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Web 3.0 Will Drive Decentralized Business Models, Says Blockchain Exec

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Kevin Chou, CEO and co-founder at blockchain ecosystem Rally, believes that blockchain technology could lead the charge toward a virtual economy in the web 3.0 era.

Speaking at Unitize on July 6, Chou, who is also involved with the firms Kabam, Forte and Gen G, said that content platforms should move away from the old business model of web 2.0 that consists of the platforms taking a large portion of the revenue.

Instead, companies should create a new and decentralized business model that favors influencers, creators, and “give away the governance to the community,” said Chou.

He added, “The web 2.0 era of business models was very much about how I build a very large platform and give away the service for free but collect a bunch of that data. […] I’m surprised, and there are many great value services that have been created, but we’re also seeing the drawbacks to that today with the lack of privacy, lack of control of your own data, and lack of control over the economics because it’s primarily advertising-based.”

“I think a lot of the new blockchain projects and web 3.0 projects are all about how we create something that will eventually be decentralized. I think the space started with everything that needs to be decentralized from the beginning,” Chou concluded.

Bitcoin pioneering the concept of decentralization

Chou believes that Bitcoin (BTC) “did a great job of pioneering” the discussion about decentralization by making people and businesses aware that decentralization is feasible, adding, “But we also see now that there’s a path established by projects like Compound and Maker, and a lot of other DeFi projects.”

Source: https://cointelegraph.com/news/web-30-will-drive-decentralized-business-models-says-blockchain-exec

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Bitcoin mining company – Bitmain’s drama continues as Zhan makes his move

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Bitmain, the once-dominant bitcoin mining equipment manufacturer, has been struggling with the back-and-forth between Micree Zhan and Jihan Wu. In a new development, Micree Zhan has not only announced a change of bank account but also a new website.

On Bitmain’s WeChat group, allegedly controlled by Micree Zhan, a new bank account for the after-sales payment of miners was announced. The note also contained the new website details. Dovey Wan tweeted that this “marks the death of Jihan in the Bitmain power struggle”. Also adding that the changed official corporate website was also controlled by Micree Zhan.

“I’m totally confused on what “Bitmain” represents and which legal entity is the righteous heir “

Jihan Wu responded to Zhan’s move by denying any changes, including the bank account or the domain.

Micree Zhan is the ousted member of Bitmain and the company is now under Jihan Wu’s control. However, Micree Zhan hasn’t stopped trying to take the reins back. A few months ago, Zhan opposed the layoffs of a significant portion of the working staff at the firm in an open letter. Additionally, a video posted on social media showed a dozen security guards marching towards the Bitmain office.

The dispute between Wu and Zhan has been going on for a while, still the mining farms controlled by the company are doing well. At press time, the total BTC hashrate controlled by Bitmain under its subsidiaries comes up to 30% of the entire hashrate.

Source: BTC.com

Out of the ~30%, BTC.com controls the most [12.1%]; AntPool follows BTC.com with a contribution of 8.7%. Lastly, ViaBTC controls about 8.7% of the total hashrate.

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Source: https://eng.ambcrypto.com/bitcoin-mining-company-bitmains-drama-continues-as-zhan-makes-his-move

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