Binance, the world’s largest cryptocurrency exchange, continues adopting new leverage trading restrictions on its futures platform in a move to expand consumer protection. After introducing a 20x leverage limit for new users on July 19, Binance Futures is preparing to apply the same limit for existing users soon, Binance CEO Changpeng Zhao announced Sunday. “We didn’t want to make this a thingy,” the CEO said, noting that the new restrictions will be applied “over the next few weeks.” .@binance futures started limiting new users to max 20x leverage last Monday, Jul 19th, 7 days ago. (We didn't want to make …

Crypto derivatives exchange FTX has decided to curb risky trading by limiting the leverage available to its users. The exchange, founded by crypto billionaire Sam Bankman-Fried, has reduced the maximum leverage available on the platform down to 20x, a significant reduction from its previous limit of 101x. In a Sunday tweet announcing the updated leverage limits, Bankman-Fried said that the decision was made in light of the exchange’s efforts to “encourage responsible trading.” He asserted that leveraged trading is not a significant part of the exchange’s overall volumes, estimating the average open margin position on FTX is leveraged by roughly …

This Friday’s weekly Bitcoin (BTC) options expiry currently holds $330 million in open interest. Considering the recent struggle to regain the $32,000 support level, this event is an important test of bulls’ willingness to display reversion signs. On Wednesday, Alameda Research announced that it had made Bitcoin purchases below $30,000, and Sam Trabucco, the firm’s quantitative trader, mentioned that the narrative for BTC could turn bullish because of the ongoing fear, uncertainty and doubt (FUD) caused by the China BTC mining ban, Grayscale GBTC unlock and recovery in stock markets. The chart above shows that the current downtrend channel, initiated …

There's no doubt that the last couple of months have been bearish for Bitcoin (BTC), but throughout this entire period, derivatives indicators have been relatively neutral. This could be because cryptocurrencies have a strong track record of volatility, and even 55% corrections from all-time highs are expected. After two months of struggling to sustain the $30,000 support and finally losing it on July 20, the futures premium and options skew turned bearish. Even PlanB's stock-to-flow valuation model was not expecting prices below $30,000 for the current month. The model uses the stock-to-flow ratio, which is defined by the current number …

A multi-asset class trading firm in Bermuda has secured major regulatory approval allowing it to offer cryptocurrency trading services. Over-the-counter trading platform 24 Exchange has acquired a “Class T” digital asset business licence from the Bermuda Monetary Authority (BMA) to roll out cryptocurrency trading on its institutional-grade platform. The firm officially announced Tuesday that the new license was granted under the Bermuda Digital Asset Business Act 2018. With the newly received license, 24 Exchange is planning to launch physical crypto trading to its institutional clients later this summer. Specializing in foreign exchange non-deliverable forwards (NDFs), or two-party cash-settled derivatives contracts, …

FTX, a cryptocurrency derivatives exchange founded by Sam Bankman-Fried, has closed a $900 million funding round, highlighting once again that venture capitalists are shrugging off market turmoil in their quest to uncover quality blockchain plays. The Series B investment round had over 60 participants, including Softbank, Sequoia Capital, Coinbase Ventures, Multicoin, VanEck and the Paul Tudor Jones family. With the raise, FTX’s valuation has grown to $18 billion, making it one of the largest cryptocurrency companies in the world. Just one year ago, the derivatives exchange had a valuation of $1.2 billion. Related: FTX crypto exchange integrates institutional trading tool …

Every once in a while, a new indicator pops out that can be used to detect price tops and bottoms in the market. This assertion is even more evident in cryptocurrencies because the data comes from exchanges and on-chain data extracted from the blockchain. These indicators are constantly monitored and commented on by analysts and traders. Some of the lesser-known metrics use data from altcoin derivatives volumes and the Bitfinex U.S. dollar lending rate. Altcoin volumes in futures markets indicate overheat The futures contract volume is usually triple that of, or even five times higher than, regular spot markets. This …

In the last 29 days, Bitcoin (BTC) has been ranging from $31,000 to $36,000 as the impact of the recent China ban and a $1.4 billion Grayscale GBTC share unlocking continue to pressure markets. China’s government implemented a series of measures to curb cryptocurrency mining and trading by ordering the immediate shut down of some operations and instructing domestic banks to suspend the bank accounts of entities involved in the industry. Meanwhile, the $21 billion trust fund Grayscale and its GBTC security is facing a troublesome period as institutional investors’ 6-month lock up comes to an end, creating a potential …

If one word could be used to describe how the majority of participants in the cryptocurrency ecosystem feel about the near-term outlook for Bitcoin (BTC) it would be 'undecided', as mixed signals from all manner of indicators have many traders waiting for a significant move in either direction before planning their next entry point. A new report from Delphi Digital took a macro look at Bitcoin's current price action and found that a variety of factors, including low exchange volumes and the strengthening U.S. dollar have weighed heavily on the top cryptocurrency. Bitcoin's recent dip to $31,000 adds to the …

It's not yet known whether Binance's recent news of being temporarily suspended from the U.K.’s financial system is the main driver behind today's Bitcoin (BTC) price drop. As Cointelegraph reported, the exchange sent emails to affected customers but has not given any details. Regardless of the reason behind the price weakness, derivatives contracts started to display some oddities, and this could be a troubling sign. Bitcoin quarterly futures are the preferred instruments of whales and arbitrage desks. Although it might seem complicated for retail traders due to their settlement date and price difference from spot markets, their most significant advantage …

Bitcoin (BTC) might be struggling to break the $36,000 resistance for the past three weeks, but bulls now have one less thing to worry about: cascading futures contracts liquidations. One might be under the impression that a $1 billion liquidation is usual for Bitcoin. Still, traders tend to remember the most recent exaggerated movements more than any other price shifts, especially when the price crashes and people lose money. This negativity bias means that even when various price impacts with equal intensity occur, the unpleasant emotions and events have a more significant effect on a trader's psychological state. For example, …

Bitcoin (BTC) investors are known for being bullish, and even during 50% corrections like the current one, most analysts remain optimistic. One reason for investors' endless optimism and belief in infinite upside could be BTC's decreasing issuance and the 21 million coins fixed supply limit. However, not even the most accurate models, including the stock-to-flow (S2F) from analyst Plan B, can predict bear markets, crashes, or FOMO-induced (fear of missing out) pumps. Traders usually misinterpret these concepts as value and price expectations can be easily mistaken. Bitcoin does not exist in a vacuum, even if BTC maximalists think so. Therefore, …