The upcoming U.S. presidential election has become one of the most contentious in history, fraught with searing divisions over everything from the economy to race to the continued health of democracy itself.
So its not surprising that Wall Street options traders are now pricing in expectations ofelevated market volatilityaround the November election. Analysts for the investment banking giant Goldman Sachsnoted earlier this monththat price swings of nearly 3% are implied around election day in the Standard & Poors 500 Index of U.S. stocks.
Whats surprising is that options trading on notoriously volatile bitcoin prices, which often trade in sync with stocks, implies a stretch of uncanny calm come November, CoinDesks Omkar Godbolereported Tuesday.
Godbole writes that ample technical factors might explain the discrepancy, from the influence of certain hedging strategies to the reality that the nascent bitcoin-options market is still quite small in relative terms, with most action concentrated in front-month contracts that expire in September.
Another possibility, according to Godbole, is that bitcoin, as a globally traded asset, might actually be less susceptible to the U.S. outcome, even though the cryptocurrency is priced in dollars. The implication could be that bitcoin decouples at that point from the U.S. market.
The U.S. elections will have relatively less impact on bitcoin compared to the U.S. equities, Richard Rosenblum, head of trading at the digital-asset firm GSR, told Godbole.
Bitcoin's expected volatility over the next few months, as implied by the options market, has been falling.
Crypto investment firm Panxora seeks $50M for new hedge fund to buy DeFi tokens
Theres been a months-long string ofastonishing developmentsandridiculous twistsin the fast growing arena of decentralized finance, or DeFi. Digital tokens with names like YAM andSUSHIhave appeared overnight, exploding in value, dominating crypto headlines and sparking serious conversations about the far-reaching potential of digital-asset markets and financial technologies.
With total collateral locked into automated, blockchain-based DeFi trading and lending platforms surging more than 20-fold this year to $13 billion as of last week, big centralized cryptocurrency exchanges like Binance, Coinbase and OKEx haverushed to list the tokensand roll out DeFi offerings to avoid missing out.
Now, one cryptocurrency money manager, Panxora, seeks toraise up to$50 million for a new hedge fundto buy digital tokens associated with the fast-growing decentralized finance (DeFi) sector.
This has got the potential to really change the way finance is carried out, Panxora CEO Gavin Smith said in an interview.
In an ironic twist, Panxoras announcement comes just as the DeFi market appears to be cooling. Just in the past week, total collateral in the systems has declined to about $9.5 billion, according to data trackerDeFi Pulse.Aave, a decentralized lender, saw its LEND tokens fall by 12% during the seven days through Tuesday, according to Messari, a cryptocurrency data firm.
Smith suggests that a correction was bound to come at some point.We expect the market to be volatile in the early years, Smith said. While there is great potential there will inevitably be setbacks along the way.
Change in BTC held on exchanges.
Key bitcoin (BTC) on-chain metrics have flipped bearish this week, suggesting the top cryptocurrency by market value may remain under pressure in the short-term.
On Tuesday, the net inflow of bitcoin to exchanges (measured by the total change in exchange balances) was 36,800 BTC the biggest single-day rise since the markets crash on March 13, according to data source Chainalysis.
Since Sept. 20, the net daily inflow of bitcoins to exchanges have been increasing and trade intensity has been declining, Philip Gradwell, an economist at Chainalysis, told CoinDesk.
The data point indicates a weakening market, he said.
Ether (ETH):Ether in parked in smart contracts rises tofour-year high.
Wrapped Bitcoin (WBTC), Rens rBTC (RBTC):Supply of tokenized bitcoin on Ethereumpasses $1.1B.
TBTC (TBTC):Thesis-built protocol relaunches after bitcoin-on-Ethereum projectsuffered smart-contract bug in May.
Aavegotchi (GHST):Aave-themed game revolving around value-staked NFTs serves asmeta trip through DeFi ecosystem, Delphi Digital says.
The latest on the economy and traditional finance
Tweet of the Day
Sign up to receive First Mover in your inbox, every weekday.
Read the original:
- Yes, bitcoin could be the new GameStop - CNBC - February 1st, 2021
- Silver Is the New GameStop as Musk's #Bitcoin Stalls - CoinDesk - CoinDesk - February 1st, 2021
- Behind the Bitcoin Bubble - The Wall Street Journal - February 1st, 2021
- This investor in both gold and bitcoin says only one offers real long-term safety - MarketWatch - February 1st, 2021
- Bitcoin White Paper - Miami - City of Miami - February 1st, 2021
- Bitcoin and Inflation: Everything You Need to Know - CoinDesk - CoinDesk - February 1st, 2021
- What the crypto bill means for bitcoin investors - Mint - February 1st, 2021
- r/WallStreetBets Shows Bitcoin's In The Game - Bitcoin Magazine - February 1st, 2021
- Elon Musk talks Mars, monkey brain implants and Bitcoin in Clubhouse interview - CNET - February 1st, 2021
- Laying out the biggest risks of investing in bitcoin in 2021 - KTAR.com - February 1st, 2021
- Bitcoin miners raked in more than $1 billion in revenue last month - TechRadar - February 1st, 2021
- Bitcoin Rally Attracts Wave Of Private Investment As Leading Blockchain VC Raises New $120 Million Fund - Forbes - December 26th, 2020
- Bitcoins Rally Has Already Outlasted 2017s Epic Run - The Wall Street Journal - December 26th, 2020
- Here's Why I Won't Buy Bitcoin, and You Shouldn't, Either - Motley Fool - December 26th, 2020
- The price of bitcoin is 'driven by manipulation': Nouriel Roubini - Yahoo Finance - December 26th, 2020
- Bitcoin To 27K Projection? - Yahoo Finance - December 26th, 2020
- Bitcoin And Crypto Trading Tips From Poker World Champion Annie Duke - Forbes - December 26th, 2020
- Mark Zuckerberg has another answer to Bitcoin - The Japan Times - December 26th, 2020
- An Unknown User Incurs More Than $80,000 in Transaction Fees When Sending BTC Worth $1 | Blockchain - Bitcoin News - December 26th, 2020
- Tokenized Bitcoin on Ethereum Now Tops $1.1 B: Here's Why - CoinDesk - Coindesk - September 25th, 2020
- 3 reasons why traders turned bullish after Bitcoin price surged to $10.7K - Cointelegraph - September 25th, 2020
- BitGo Is Bringing DeFi-Friendly Wrapped Bitcoin to the Tron Blockchain - CoinDesk - Coindesk - September 25th, 2020
- Keiser Insists 'Bitcoin Inversely Correlated To USD Not Stock Markets' After Crypto Market Tumble | Markets and Prices - Bitcoin News - September 25th, 2020
- Profit taking Bitcoin miners wont stop the next bull run: On-chain analyst - Cointelegraph - September 25th, 2020
- The Winklevosses have launched their bitcoin exchange in the UK - Wired.co.uk - September 25th, 2020
- Christies to sell its first non-fungible-token as part of epic Bitcoin artwork - Cointelegraph - September 25th, 2020
- Bitcoin-related ads are now streaming on Disney+ in some regions thanks to Zebpay - Cointelegraph - September 25th, 2020
- Cryptocurrency ETF by Nasdaq and Hashdex Approved to List on Bermuda Stock Exchange | Regulation - Bitcoin News - September 25th, 2020
- XSwap Started Yield Farming, The Highest APY Reaches 70,000% | Press release - Bitcoin News - September 25th, 2020
- Bitcoin sentiment at record lows Does it mean the price will go up? - Cointelegraph - September 18th, 2020
- Its a bull trap! 3 key metrics forecast Bitcoin price rejection at $11K - Cointelegraph - September 18th, 2020
- Bit Digital, Inc. Announced Officially to Cooperate with the World's Leading Bitcoin Colocation Partner In US - PRNewswire - September 18th, 2020
- How Bitcoin Correlations Drive the Narrative - CoinDesk - CoinDesk - September 18th, 2020
- Bitcoin hardware devices need to improve to handle complex transactions - Cointelegraph - September 18th, 2020
- First Mover: Bitcoin Investors the Sane Ones as Federal Reserve Cheers Inflation, Price Nears $11K - CoinDesk - CoinDesk - September 18th, 2020
- Why We Get Obsessed With Bitcoin - Decrypt - September 18th, 2020
- Tevoro.com Announces New Book Revealing What's Missing from Bitcoin, Ethereum and Other Cryptocurrencies - PRNewswire - September 18th, 2020
- Bank of England talks negative interest rates in best ad for Bitcoin - Cointelegraph - September 18th, 2020
- Fed, oil and record hash rate: 5 things to know in Bitcoin this week - Cointelegraph - September 18th, 2020
- Glen Oaks Escrow Announces It Assisted With Yet Another Bitcoin Transaction - PRNewswire - September 18th, 2020
- India's Crypto Bill Omitted From Parliament Agenda While New Ban Report Appears - Bitcoin News - September 18th, 2020
- First Mover: As Bitcoin Falls for Second Day, Long-Term Holders Probably Won't Care - CoinDesk - CoinDesk - September 5th, 2020
- Can You Have Your Bitcoin And Eat It Too? - Forbes - September 5th, 2020
- If Bitcoin Crashes Below $10,000 Its All OverHeres Why - Forbes - September 5th, 2020
- A Radical New Crypto Just Blew Past The Bitcoin Price All-Time HighUp A Shocking 3,500% In Just One Month - Forbes - September 5th, 2020
- First Mover: Buying Bitcoin's Dip, Betting Against Tether and Weighing the Jobs Report - CoinDesk - CoinDesk - September 5th, 2020
- Private Capital And Institutions Are Piling Into Bitcoin And Other Digital Assets But You Need To Know Where To Look - Forbes - September 5th, 2020
- Ethereum Soars 10% Overnight Implications For Bitcoin - Forbes - September 5th, 2020
- Bitcoin Down Almost 10% Today, You'll Be Surprised to Hear What's Next - FX Empire - September 5th, 2020
- So Far, a Nice Rise But Not a Wild Runup for Bitcoin Since the May Halving Event - Digital Transactions - September 5th, 2020
- Bitcoin Will Be Accepted for Tax Payments in Swiss Canton Zug Next Year | Taxes - Bitcoin News - September 5th, 2020
- The History of Bitcoin - WTOP - September 5th, 2020
- Wasabi Wallet Patches Flaw That Could Have Thwarted Bitcoin Privacy Feature - CoinDesk - Coindesk - September 5th, 2020
- Why Fusion's DCRM is The Best Option for DeFi Users | Sponsored Bitcoin News - Bitcoin News - September 5th, 2020
- Bitcoin Will Break Out This Year, Says Devere CEO | News - Bitcoin News - September 5th, 2020
- Tax Implications For Donations Of Bitcoin - Forbes - September 5th, 2020
- Protection Over Profit: What Early Mining Patterns Suggest About Bitcoins Inventor - CoinDesk - CoinDesk - September 5th, 2020
- Research: New Malware Employs Tor and Bittorrent To Steal Bitcoin and Ether | Security - Bitcoin News - September 5th, 2020
- Will Bitcoin Dump If Stocks Have Another COVID-19-Scale Crash? - Forbes - September 5th, 2020
- Elon Musk Confirms Serious Russian Bitcoin Ransomware Attack On Tesla, Foiled By The FBI - Forbes - September 5th, 2020
- 3rd Bitcoin SV Hackathon Finalists announced to compete for USD $100,000 - PRNewswire - September 5th, 2020
- Max Keiser thinks Warren Buffett will move to Bitcoin soon - Cointelegraph - September 5th, 2020
- Major Swiss Insurer Adds Bitcoin and Ether Payments | News - Bitcoin News - September 5th, 2020
- Warren Buffett Shifts Funds From US Amid Inflation Fears, Bitcoin's New All-Time High Expected | News - Bitcoin News - September 5th, 2020
- No interim injunction over bitcoin account where damages would be adequate - Lexology - September 5th, 2020
- Venezuela's Bitcoin Use Soars Amid Hyperinflation: 3rd on Global Crypto Adoption Index | News - Bitcoin News - September 5th, 2020
- Bitcoin market index back to fear on 91st anniversary of 1929 crash - Cointelegraph - September 4th, 2020
- China Is No Threat To Bitcoin, Promises Foundry CEO After $100 Million Bitcoin Mining Bet - Forbes - September 4th, 2020
- 3.5 Million+ Crypto Wallets Downloaded in July, Active Users up 110% in the Year | Wallets - Bitcoin News - September 4th, 2020
- Here Are The Key Levels To Watch In Bitcoin - Forbes - September 4th, 2020
- Ethereum Is Eating Bitcoin - Forbes - September 2nd, 2020
- Bitcoin Rally Fails After Breaking Through $12,000 - Forbes - September 2nd, 2020
- Fidelity Is A 1,000 Pound Bitcoin Gorilla In The Making - Forbes - September 2nd, 2020
- Is Bitcoin About to Explode? - TheStreet - September 2nd, 2020
- Russia Blocks Cryptocurrency Websites Ahead of Regulation | News Bitcoin News - Bitcoin News - September 2nd, 2020
- USD has more room to fall 5 things to watch in Bitcoin this week - Cointelegraph - August 31st, 2020
- Bitcoin In The Early Stages Of A Bull Market, Crypto Wallet Data Reveals - Forbes - August 31st, 2020
- Federal Reserve's Major Policy Shift to 'Push Up Inflation' Could Send Bitcoin Price to $500K - Bitcoin News - August 31st, 2020
- Bitcoin balks as the Fed talks, DeFi surge continues: Weekly recap - Cointelegraph - August 31st, 2020
- $140,000 of North Korean Bitcoin Targeted by DoJ Starts Moving - Decrypt - August 31st, 2020