Blockchain

A recent analysis by Deribit, a leading derivatives exchange, suggests a bullish sentiment for Bitcoin as we approach early 2024. This optimism is rooted in the current Bitcoin put-call options ratio, a critical option market metric.

Deribit’s Insight: Bitcoin Calls Outpace Puts Signaling Market Confidence

Notably, options are financial instruments that give traders the right, but not the obligation, to buy (call options) or sell (put options) an underlying asset at a specified price within a set time frame. The put-call ratio is used in options trading to measure market sentiment.

A put option signifies a bet on the price of an asset falling, while a call option represents a wager on its rise. A lower put-call ratio indicates that more traders are betting on the asset’s price increasing rather than decreasing.

Deribit’s analysis shows an increasing trend in the number of call options outstripping put options in Bitcoin’s options market. Luuk Strijers, Chief Commercial Officer at Deribit, highlighted that the put-call ratio for Bitcoin has consistently hovered “between 0.4 and 0.5” throughout the year.

This trend is particularly noticeable for options expiring in March and June 2024, suggesting that investors are increasingly using call options to position for a potential appreciation in Bitcoin’s value during this period.

The put-call options ratio falling below one is a bullish market indicator, as it shows that call volume, or bets on the price increase, surpasses the put volume, which are bets on the price decrease. According to Deribt, Bitcoin’s put-call ratio currently stands at 0.42, as of today.

A Surge In Crypto Derivatives Activity

Meanwhile, November has seen significant activity in the crypto derivatives market, as noted by Strijers. The Deribit executive attributes this increased market activity to higher levels of “implied volatility (DVOL),” which have spurred “opportunities and overall market volumes.”

The expiration dates of the upcoming options, especially the significant one on December 29, are expected to maintain the heightened interest and activity in the market. With $5.7 billion in Bitcoin options and $2.7 billion in Ethereum options set to expire at the end of December, the market is poised for notable movements.

Bitcoin maintains its upward momentum, advancing by 1.8% over the past 24 hours. With Bitcoin currently trading at $38,344, the asset has sustained the gains achieved at the close of the previous month.

Bitcoin’s trading volume significantly reflects heightened market activity, suggesting ongoing buying pressure. In just the last day, trading volumes have surged from around $11 billion earlier in the week to over $21 billion, a noteworthy indication of increasing investor engagement.

Featured image from Unsplash, Chart from TradingView

The Avalanche (AVAX) price has performed reasonably well this year, going from a low of around $9 to as high as $24 before correcting back downward. Since the correction, the altcoin has been trading in a tight range around $20 and $21. However, this might not continue for much longer following one crypto analyst’s prediction.

An AVAX Bullish Wave Is Rising

Crypto analyst Babenski has unveiled their bullish prediction for the AVAX price going forward. According to the analyst, the digital asset could be poised for an incredible run that could break multiple bearish resistances to bring its price to $30.

Babenski’s analysis hinges on the EMA100 (Exponential Moving Average) which they identify as providing dynamic support for the altcoin. This began during the October rally where prices started rising and AVAX did not lose the EMA100 despite multiple corrections.

Even on the 4-hour chart that the analyst presents, the altcoin’s price also touched down toward the EMA100. But once again, this dynamic support held as the price bounced off and continued on its merry way. This suggests a lot of support for the asset at this level.

Additionally, the crypto analyst reveals that the AVAX price has also broken out of a bullish pennant. This is shown in the chart as the price resumed its uptrend above $21. This breakout “Looks bullish in short term,” according to the analyst, and could send the price to $30.

However, the bullish trend is not the only one that is spinning for the AVAX price. While bulls remain firmly in control, there is still the possibility of the altcoin losing its dynamic support. If this happens and the price drops lower, then Babenski reveals that the next significant support is located just around the $17 price level.

Avalanche Ordinals Take Center Stage

The Avalanche network has also seen a surge in its network usage that could contribute to the price surge predicted for the AVAX price. Following the Polygon network, Ordinals have also made their way to the Avalanche network and their adoption caused a spike in transaction numbers

Last week, Ordinals minting accounted for around 96% of the total transaction numbers, and as the fees on the network increased, so did the demand for AVAX. Additionally, Avalanche has debuted its new explorer after cutting ties with Etherscan. The network has now moved to a new multichain explorer for considerably cheaper than what they used to get with Etherscan.

A crypto analyst has singled out an event that could be the spark that Ethereum needs to hit the price level of $3,500. He believes that the second-largest cryptocurrency by market cap is going to make this run after Bitcoin “gets its shine.”

How Ethereum Will Hit $3,500

In a post shared on his X (formerly Twitter) platform, the CEO and founder of MN Trading, Michaël van de Poppe, alluded to the Ethereum Spot ETF filing by Fidelity in his price prediction of $3,500. The crypto analyst seemed to be suggesting that approval of an Ethereum Spot ETF could propel Ethereum’s price to such heights. 

His reference to Bitcoin also confirms that this might indeed be van de Poppe’s “thesis.” He spoke about Ethereum “running to $3,500 in Q1 2024” after Bitcoin has had its shine. The “shine” likely refers to the possible approval of a Spot Bitcoin ETF. Some analysts have predicted that there is a 90% chance that a Spot Bitcoin ETF will be approved by January 10, 2024.

With this in mind, the crypto analyst possibly believes that approval of an Ethereum Spot ETF could come not long after once the Spot Bitcoin ETF is approved. If that happens, it could spark a massive rally in Ethereum’s price. That could explain why Michaël van de Poppe is predicting Ethereum to run to $3,500. 

Several asset managers have already applied with the Securities and Exchange Commission (SEC) to offer an Ethereum Spot ETF. However, all eyes seem to be on the SEC’s decision on the pending Spot Bitcoin ETF applications. This could simply be because a final decision is expected on the pending Spot Bitcoin ETF applications, unlike Ethereum’s, which still have a longer review process.

Ethereum Spot ETFs May Not Get The Same Reception

Historically speaking, there is reason to believe that Ethereum Spot ETFs might not enjoy the same reception that Spot Bitcoin ETFs have gotten so far. This is based on the fact that there was a stark comparison in the numbers when the futures ETF of both crypto tokens launched. 

Bitcoin futures ETFs were already in place as of 2021, with ProShares Bitcoin Strategy (BITO) ETF being the first to launch. Meanwhile, Ethereum futures ETFs just launched this year. What is most interesting is the trading volume that BITO saw on its launch date in comparison to all Ethereum futures ETFs on their launch date. 

BITO is reported to have seen more than $1 billion in trading volume in the first two days of launching. On the other hand, the total trading volume for Ether ETFs on their launch day amounted to just under $2 million. 

Sam Bankman-Fried, the co-founder of the FTX crypto exchange, who was recently found guilty of multiple counts of criminal fraud, reportedly faced a harrowing experience while incarcerated. 

According to a former mobster turned federal informant, Gene Borrello, who shared a prison cell with Bankman-Fried, the disgraced crypto executive was placed on suicide watch and endured challenging conditions during his time at Brooklyn Metropolitan Detention Center (MDC) while awaiting sentencing next year.

FTX Co-Founder Subjected To Extortion

The details emerged during an interview with crypto blogger Tiffany Fong, where Borrello disclosed the troubling circumstances surrounding Bankman-Fried’s imprisonment. 

The former detainee recounted how Bankman-Fried was subjected to suicide watch, extortion attempts, and even periods of self-neglect, including refusing to eat or shower for several days.

In an attempt to protect Bankman-Fried from potential harassment or extortion, authorities segregated him from gang members within the prison facility. However, despite these precautions, Borrello’s intervention reportedly foiled an extortion plot against the crypto mogul.

Borrello further revealed that he prevented the extortionists from coercing Bankman-Fried into sharing a bunk with them, placing the FTX co-founder in a solitary wing. Additionally, Bankman-Fried’s parents reportedly requested his transfer to the solitary unit to ensure his safety.

Drastic Change In Prison?

Describing the physical and emotional toll on Bankman-Fried, Borrello highlighted the crypto executive’s frail appearance, likening it to that of an elderly man. Borrello stated on the matter:

He has the body of an 80-year-old man. He has, like, no shape to him. When he talks to you, he puts his head down; he’s very timid, he talks very nervously. 

Borrello also noted Bankman-Fried’s timid demeanor, with the co-founder displaying signs of nervousness during interactions. 

In one conversation, Borrello confronted Bankman-Fried, stating that he had never been in a physical altercation before and questioned his association with gang members.

As reported by our sister site, Bitcoinist, Bankman-Fried received unique treatment in prison, where he allegedly received special privileges for sharing cryptocurrency-related information with prison guards and fellow inmates.

However, Borrello’s account offers a contrasting perspective, emphasizing the challenges and vulnerabilities the disgraced executive faced behind bars.

As Bankman-Fried’s sentencing approaches, his time in prison, including allegations of bullying and the ultimate impact on his legal proceedings, continues to draw attention. 

The revelations from Borrello’s interview provide a rare glimpse into the world of the disgraced FTX co-founder, and it remains to be seen what other revelations may be made in prison for Bankman-Fried as his sentencing trial looms in 2024.

At present, the native token of FTX, FTT, is trading at $4.0997, indicating a decrease of 2.8% in the past 24 hours. However, it is noteworthy that the token has experienced a substantial surge of 216% year to date.

Featured image from Shutterstock, a chart from TradingView.com 

For the last two years in the crypto market, it has paid off to be in Bitcoin versus altcoins. However, a new BTC dominance chart shows why the tides are about to turn in favor of altcoins.

Bitcoin Crypto Market Dominance Remains Above 50%

At this very moment, Bitcoin, the top cryptocurrency by market cap, represents more than 50% of the entire crypto market. On one hand, this makes sense given its regulatory acceptance, first-mover advantage, and significant brand power. On the other hand, there are tens of thousands of altcoins out there and yet BTC is still dominant.

But even Bitcoin dominance goes through cyclical boom and bust phases where it loses its dominance to the rest of the crypto market. This is typically called “altcoin season.” The last one to occur was back in late 2020 into 2021, and it lasted only several months. Before that, the rally that coined the term altcoin season took place all of 2017.

With three to four years in between the 2017 rally, the calendar turning toward 2024 puts us yet another year closer to the next altcoin season. This is evident by price action and technical oscillators following sine waves.

 Riding The Wave To The Next Altcoin Season

According to Investopedia, a sine wave is an S-shaped geometric waveform that oscillates periodically above and below zero. Sine waves can be used in technical analysis to help identify cyclical patterns in technical indicators and oscillators.

In the chart above, the sine wave suggests that indicators are ready to begin rolling over, with the wave overlaid matching the 1M Stochastic almost perfectly. Aside from some chop, the sine waves have followed the ebb and flow back and forth between Bitcoin and altcoin dominance for going on a decade.

If the tool accurately demonstrates the path ahead for Bitcoin dominance, the next altcoin season could be on the way soon enough. Bitcoin is approaching $40,000 and is becoming increasingly expensive for retail investors, who aren’t even paying attention yet to the crypto market.

When they do realize how expensive Bitcoin is again, right under their noses, retail investors will search for the “next Bitcoin” frantically, sparking the next altcoin season. The last time these phases occurred, Bitcoin was passing $10,000 in 2017, and $20,000 in 2020. Now in 2023, will $40,000 be the trigger for alts to finally outperform?

It’s time for the ebb and flow to favor altcoins again pic.twitter.com/y5cONFhJyo

— Tony “The Bull” (@tonythebullBTC) December 1, 2023

Dogecoin has just completed another month in the green despite the various dips and turns that it took in November. This green monthly close marks its second consecutive green monthly after finishing out October in the green as well. With this trend now complete, let’s take a look at Dogecoin’s historical performance when it has notched two consecutive green monthly closes.

Two Green Dogecoin Monthly Closes

The two consecutive green monthly closes for Dogecoin are significant due to how the price has performed when this has happened in the past. Given the meme coin’s highly volatile nature, it is not every time that it notches two consecutive green monthly closes and this could be very bullish for the price.

For example, back toward the end of 2020, the meme coin had closed out the months of November and December in the green. While at the time, it did not seem relevant, this would signal the start of one of the most impressive rallies in crypto so far.

Dogecoin took the green monthly closes and ran with it and the next few months would be characterized by nothing but green. The DOGE price went from around $0.008 following the green monthly close to over $0.05 in the next four months.

Each of these four months would see the meme coin close in the green as its price continued to rally. If this trend were to repeat itself once again, then the DOGE price could be gearing up for another massive run.

Can DOGE Replicate This Success?

Dogecoin has historically been good with following trends, which bodes well for the current performance. However, there have been times when there has been a deviation from this trend despite marking the two consecutive monthly closes.

In September and October 2022, Dogecoin had closed out both months in the green. However, the next few months would turn out to be quite bearish for the price. In the end, the meme coin saw two red monthly closes before seeing another monthly close.

A major difference between the 2022 trend and the 2023 trend though is the fact that 2022 was quite bearish following the FTX collapse while 2023 is very bullish with the Bitcoin price recovering again. With investor greed at a very high level, Dogecoin could continue to rise.

As crypto analyst Ali Martinez points out, the meme coin is currently seeing a lot of resistance at $0.087. However, once it breaks through this resistance, then the DOGE price could double from here.

On-chain data shows Cardano is currently retesting a major resistance wall, breaking through which might pave the way to higher price levels.

Cardano Is Facing On-Chain Resistance At Current Price Levels

According to data from the market intelligence platform IntoTheBlock, there appears to be key on-chain resistance around the $0.38 mark. In on-chain analysis, levels are judged to be “resistance” or “support” based on whether they host the cost basis of a significant number of investors or not.

The cost basis here naturally refers to the price at which a Cardano investor bought their tokens. This price is obviously an important level for any holder, as the asset’s spot value retesting this level could mean a potential swing in their profit-loss situation.

Because of this reason, holders are particularly sensitive when such a retest happens and as such, they may be more likely to show some kind of move. What kind of move this would be, though, depends on the prior profit-loss situation of the investor.

Investor psychologically works so that if the trader had been holding a profit before this retest, they might want to take a further gamble at it, as they could believe this same price level would be profitable again in the future.

Similarly, the holder might lean towards selling instead if the retest is happening from below since they would fear a scenario where the price declines again and they dip back into losses.

Now, here is what the various Cardano price ranges are looking like right now in terms of the concentration of investors or addresses who acquired their coins at them:

In the above graph, the size of the dot represents the amount of investors who bought inside the range. As mentioned before, investors are likely to show some reaction when the price retests their cost basis, so if a large number of them share their cost basis inside the same range, the effect that the market would feel from the retest would also be equally sizeable.

From the chart, it’s visible that the ADA price range between about $0.37 and $0.39 has a cost basis of over 319,000 addresses, which acquired a total of 7.19 billion ADA at these levels.

This is the same range that Cardano has been retesting recently and has been struggling to break out of. It would appear that the reason behind this might be the resistance being offered by the sellers who are attempting to exit at their break-even prices.

Given the large scale of this resistance wall, it would be tough for the cryptocurrency to mow through it and gain some distance. If the asset can achieve this, though, then the zone might turn into support instead and provide some solid ground for a move towards higher levels.

ADA Price

Cardano is trading around the $0.38 level right now, which is right in the middle of the resistance wall.

Anticipation is building as major asset managers’ predicted approval date for Bitcoin ETF applications approaches 2024. Experts have now issued bold predictions, with Bloomberg exchange-traded fund (ETF) expert James Seyffart pinpointing the potential approval window from January 5th to January 10th. 

The significance of this timeframe has sparked excitement within the cryptocurrency community, as the approval could mark a major milestone for the industry. However, experts emphasize that failure to approve during this window could have significant implications for the SEC and potential ETF applicants.

Bitcoin ETF Approval Expected On January 8th

According to James Seyffart, any potential approval orders for the Bitcoin (BTC) ETF are likely to occur on Monday, January 8th, Tuesday, January 9th, or Wednesday, January 10th. Seyffart and expert Eric Balchunas estimate a 10% chance or less that the approval will fall outside this window. 

Furthermore, Seyffart believes that failure to approve the ETF during the predicted window could indicate a significant shift in the SEC’s stance on cryptocurrency-related financial products. 

This would suggest that either SEC Chairman Gary Gensler and the regulator have taken an aggressive approach or believe the market is not ready for a spot Bitcoin ETF. In the latter scenario, it is possible that ETF applicants such as ARK Invest and 21Shares have voluntarily withdrawn their applications with assurances of future consideration.

Caitlin Long, founder and CEO of Custodia Bank, believes that if the predicted approval window holds true, there will be an intense marketing battle among Bitcoin spot ETF issuers. 

Long highlights that the spotlight will be on these issuers as they compete for investors’ attention and navigate the post-approval landscape. This development is expected to generate excitement among mainstream investors, with many expressing curiosity about Bitcoin’s resurgence following previous periods of doubt. 

The potential approval timing aligns with the April halving event and the US presidential election, adding further intrigue to the market dynamics.

BTC Hits New Yearly High Amidst High Probability Of Approval

According to insider sources, the SEC has conducted extensive meetings with Bitcoin spot ETF issuers. These discussions have indicated a high probability of approval, with a reported 99% confidence level. 

The SEC is said to meticulously review all applications, ensuring that every detail is thoroughly examined and all necessary requirements are met. In the meantime, Grayscale, a prominent cryptocurrency asset management firm, is actively pursuing the possibility of being the first to offer a conversion-based ETF, contingent on a court decision.

Moreover, Bitcoin has recently achieved a new yearly high, solidifying its position as the leading cryptocurrency in the market. The cryptocurrency has been consistently gaining ground, forming higher lows and demonstrating an upward trend, as evidenced by the 1-day chart below.

Presently, BTC has surpassed the $38,800 mark, surpassing its previous milestone by over $400. The next target in sight is the $40,000 level, which has not been reached since April 2022. 

Over the past 24 hours, the bullish momentum has remained strong, with BTC extending its gains by 2.9%, and over the past 7 days, it has seen a 1.7% increase. 

As the date of the ETF approvals approaches, it remains to be seen how Bitcoin’s price will respond. Additionally, market participants are eagerly observing how the cryptocurrency will perform during the final stretch of the year.

Featured image from Shutterstock, chart from TradingView.com 

The Meme-based cryptocurrency Dogecoin (DOGE) has recently experienced a significant increase in whale transactions during an improvement in the crypto asset’s price.

300 Million Dogecoin (DOGE) Dumped In Crypto Exchange

Data from the on-chain crypto tracker Whale Alert recently revealed that a massive amount of Dogecoin (DOGE) was transferred to Robinhood. This whale transaction has attracted the interest of traders and investors in the larger cryptocurrency space.

According to the crypto tracker, the transfer was orchestrated by an unknown wallet address earlier today. The wallet address identified as DDuXG.ruc1wwKF sent about 300 million DOGE to the cryptocurrency trading platform Robinhood.

The post read:

300,000,000 #DOGE (25,033,123 USD) transferred from unknown wallet to #Robinhood.

With the current price of Dogecoin, the whale transaction is valued at approximately $25 million. The whale moved the substantial Dogecoin haul to Robinhood for a comparatively low network cost of just $0.18. This is most likely by taking advantage of times when fees and congestion were low. 

The transfer of DOGE to Robinhood suggests that the whale is looking to sell the tokens, igniting speculation in the larger cryptocurrency market. However, it seems that the meme-based cryptocurrency’s price increase runs counter to the tokens being dumped on exchanges.

Currently, the price of DOGE is sitting at $0.0839, indicating an over 2% increase in price in the past 24 hours. Meanwhile, its market capitalization is also reflecting the same percentage rise at $11.9 billion, according to CoinMarketCap.

A similar whale transaction was also flagged by the on-chain tracker recently. In October, a similar transaction of 300 million DOGE tokens occurred thrice, while last month also saw a similar transaction twice.

Large-scale individual transactions usually come with the danger of crashes due to fast liquidations or market manipulation. However, there is no solid evidence that the whale transaction had any impact on the token’s price.

The Crypto Asset’s Holders Increases Significantly

Dogecoin has shown a significant uptick in its total number of holders lately. Analytics firm IntoTheBlock revealed that the total number of addresses holding a balance exceeded 5 million this week, and reached a high of 5.02 million on November 27. A major factor contributing to the rise in new Dogecoin addresses is the cryptocurrency’s increasing adoption and interest.

The on-chain analytics firm also revealed that the numbers have been increasing gradually since the start of the year. “This recent activity is most likely driven by Dogecoin “Doginals”, which don’t require a significant on-chain balance of $DOGE,” IntoTheBlock said.

DOGE trading at $0.0833 on the 1D chart | Source: DOGEUSDT on Tradingview.com

Shibarium has crossed a new milestone in the space of a few days. The layer-2 solution built for Shiba Inu’s ecosystem just saw transactions spike an astounding 4,400%, registering 748,230 transactions in the past 24 hours. 

Numbers like this demonstrate the sheer adoption rate of Shibarium, and investors are left wondering if high valuations for the tokens on the Shiba Inu ecosystem are inevitable.

Shibarium Transactions Explode Over 4,400% In One Day

Shibarium went live in August and has become the go-to platform for SHIB whales and investors. Shibarium recently crossed the 4 million transaction mark, but it looks like the run isn’t stopping anytime soon. 

The layer-2 solution saw an explosion of over 4,400% transactions in just the past 24 hours to reach the next milestone of five million transactions. According to data from Shibariumscam, there were 748,230 transactions in the past 24 hours, the highest ever recorded since its launch. 

Notably, the transaction count on the network has been on the rise in the past week, as it reported over 43,000 transactions On November 23. At the time of writing, the total transaction count now stands at 5.968 million and is steadily approaching the 6 million milestone. 

What This Means For SHIB And BONE Prices

The massive increase in Shibarium transactions is hugely bullish for SHIB and BONE prices. With more activity and utility on the network, demand for the native tokens should rise. Even before the platform went live, SHIB has been known to react to updates regarding the platform. As it stands, a larger part of SHIB’s utility is now tied to the adoption and use of Shibarium. 

BONE is also of this sentiment regarding Shibarium. Apart from its utility as the governance token on the ShibaSwap decentralized exchange (DEX), BONE is also used to pay gas fees on the Shabarium network. The more people buy, sell, and trade on the network, the higher BONE’s price can climb. As a result, the hype around Shibarium’s launch in August saw the crypto spike over $1.7 for a few hours. 

It would seem that both SHIB and BONE have reacted positively to the recent transaction surge on Shibarium, among other things. According to data from Coinmarketcap, SHIB is up by 1.45% in the past 24 hours, while BONE is up by 2.59% in the same timeframe. However, despite the constant spikes this year, both tokens are still in the negative in a larger timeframe, down by 9.89% and 18.64% in a yearly timeframe.

Due to the recent spike in Shibarium transactions, many SHIB and BONE holders are optimistic that new all-time highs are on the horizon for these tokens. SHIB is trading at $0.000008315 at the time of writing and it would need to perform a 930% gain to reach its all-time high of $0.00008616. BONE, on the other hand, is currently trading at $0.6262 and would need to perform gains of 2375% to reach its current all-time high of $15.50.

The Shiba Inu ecosystem continues advancing, enhancing the utility and technology behind SHIB, and the future looks bright for this innovative ecosystem and its tokens.