Coin360 news

[kidis]

Momentum





Bitcoin continues to trade around the $8,000 level and, even though profit taking looks sensible at these levels, trying to call the cryptocurrency market now would be like trying to catch a falling knife. Momentum is clearly suggesting a move to higher levels, but as underlying network fundamentals continue to lag the price advance, bears continue to warn of a crypto market correction.


Read the full article: https://coin360.com/blog/momentum

[kidis]

Rewind




Heading into the upcoming CME Bitcoin futures expiry day at the end of this week, the cryptocurrency market is beginning to show signs of jitters. Although the path towards the psychologically important $10k level remains intact for Bitcoin, profit taking at this stage is not an unlikely scenario. However, something that would maintain the price momentum is the ongoing roll into the next futures contract. Specifically, open interest (OI) for the month of June stands at 1,996 (up from 1,316) and July at 432 (up from 303). In total, OI is at 5,190 (up from 4,804). The next few days will be telling whether the roll will accelerate further, which in turn would be supportive of the underlying sentiment.

Read the full article: https://coin360.com/blog/rewind

[kidis]

Tulip Season Coming to an End?




It is well known that Tulip season runs from the end of March until mid-May, but the flowers are usually at their best halfway through April. Similarly, despite the relatively sanguine start to the year, just like Tulips, the crypto markets blossomed in early April and the bulls have not looked back since. As a result, by the time June was upon us, Bitcoin’s price was up over 100%, as are many other crypto assets (see table below).

Read the full article: https://coin360.com/blog/tulip-season-coming-to-an-end

[kidis]

Race to the Bottom




Flight-to-quality continues to dominate across traditional financial markets, so much so that gold prices hit their highest levels in two months on Monday amid the never-ending uncertainty surrounding global trade talks, as well as the ongoing Brexit negotiations. As a result, US Treasury yields continued to track lower and are now below the 2.10% mark for the first time since September 2017. At the same time, the long end of the curve, the 30-year yield fell 4.8bps to 2.5204%, a level not seen since November 2016. Meanwhile, the tech-heavy Nasdaq Composite index entered correction territory, as investors continued to fret over the tariff threats against Mexico and China.


Read the full article: https://coin360.com/blog/race-to-the-bottom

[kidis]

Lock It In




The cryptocurrency market traded weaker overnight during Asian trading hours but has since pared back the vast majority of early losses. As such, in early European trade, Bitcoin is trading down just over 1%, Ethereum is flat and XRP is down 1.5%. The Bitcoin futures curve remains in contango, albeit the premium has dwindled somewhat, while the Ethereum Sep-Perp spread has also narrowed to around $4 vs being above $10 during the recent rally. In terms of decentralized finance (DeFi) and leveraged market, the amount of ETH coins locked in the credit ecosystem of MakerDAO has held steady at around 1.54%. However, as per the overview of the collateralized debt position (CDP) monitor, the lock function, which allows users to add more collateral to their CDP is above the recent daily average. In general, the lock function is used when the price of ETH drops and you are below your personal collateral threshold or your CDP is approaching liquidation.


Read the full article: https://coin360.com/blog/lock-it-in

[kidis]

How Do You Like Your Curves




The crypto market continues to trade stubbornly around the $8k level and the June Bitcoin futures contract, which posted its first trade on Dec. 31, 2018 and subsequently traded in contango, causing a huge squeeze in the market, is due to expire at the end of this month. The total open interest on the CME is 4,423, of which 3,171 corresponds to the June contract. The contango between Sep and perpetual has tightened significantly recently and spot traders should pay particular attention to the shape of the curve in the next few weeks to gauge the near-term sentiment, especially if the price action remains sideways. Interestingly, realized funding is back in the negative across the board. Another metric worth noting is that of Bitcoin’s layer-2 scaling solution, the Lightning Network, which saw a huge growth phase earlier this year and now is experiencing a prolonged drop-in capacity. In early European trade, the network capacity is down 11%, and the number of channels is also down 9.4%.

Read the full article: https://coin360.com/blog/how-do-you-like-your-curves

[kidis]

Summertime Blues




Having traded at a huge premium, Bitcoin futures contango is seemingly being evaporated, with Sep-perpetual trading within $10 of each other. Whether the curve will invert or not remains to be seen, but anyone trading directional should not underestimate the importance of watching the futures curve as we head towards the June 28 contract expiry. Bitcoin continues to hold onto $8k and the key level to watch on the downside is 7,450, as a break below would open the door towards what could develop into a very painful crypto market correction. The Lightning Network, which experienced massive growth earlier this year continues to experience a drop in capacity. In the past 30 days, network capacity is down 9%, and the number of channels is also down 8.1%.

Read the full article: https://coin360.com/blog/summertime-blues

[kidis]

Roundtrip Rags to Riches




In the world that is overflowing with economic and geopolitical uncertainty, one thing remains constant and that is that crypto markets continue to defy well-established market correlation patterns. Leaving the endless trade talks and Brexit scenarios aside for the time being, the market was little affected by the reports of two oil tankers getting attacked in the Gulf of Oman. Brent crude was on course for its biggest single-session gain since January, which saw the international oil benchmark trade up almost 14% for 2019. Another development that may prove more pertinent to crypto firms, especially those that have ties to China, are the proposed amendments to the extradition laws in Hong Kong that would allow extradition requests from authorities in mainland China, Taiwan and Macau. As a guide, Hong Kong has entered into extradition agreements with 20 countries, including the UK and the US, but an agreement with China has never been reached.

Read the full article: https://coin360.com/blog/roundtrip-rags-to-riches

[kidis]

Against All Odds




Bitcoin remains in focus as it continues to make runs the key $10k level and, given the renewed contango widening, even with only 2 weeks until the CME contract expiry, surpassing 10k looks to be a matter of when and not if.


Read the full article: https://coin360.com/blog/against-all-odds

[kidis]

Bite the Bullet




Large cap digital assets have continued to trade in a relatively tight range and it appears that the market currently finds itself in a position that requires someone to take that unpleasant step and “bite the bullet” so to speak, to drive the market past $10k or look for lower levels to re-enter and try again. The futures curve continues to undergo further contango widening, June-Sep play has been attracting better volume, especially as the June Bitcoin contract is due to expire next week. Of note, funding rates have been creeping higher yet again.


Read the full article: https://coin360.com/blog/bite-the-bullet

[kidis]

What If




Bitcoin remains tantalizingly close to the key $10k level, while Ethereum keeps oscillating around the $268 level. The BTC futures curve continues to stretch out the widening contango, with the Ethereum contango delta close to $11. At the same time, the funding rates have been creeping higher, putting further pressure on outright longs.

Read the full article: https://coin360.com/blog/what-if

[kidis]

From Gold Bugs to Bitcoin Bugs




To avoid any confusion, a gold bug is a term used in the financial sector and among economists to refer to people who are extremely bullish on gold as an investment with no connection to actual bugs or software bugs.

Read the full article: https://coin360.com/blog/from-gold-bugs-to-bitcoin-bugs

[kidis]

Act 2




Bitcoin price rallied ferociously past the psychologically important $10,000 level before topping out just above the $11,000 level, while the futures curve remains in deep contango but the delta has narrowed from the widest levels observed over the weekend. At the same time, Ethereum rallied all the way to the $320 area, with the Sep-perpetual spread expanding to $17. As a reminder, this week will see June CME Bitcoin futures expire, so pay close attention to the futures roll and the shape of the curve. The funding costs are also on the rise, moving to their highest level since May.


Read the full article: https://coin360.com/blog/act-2

[kidis]

Tether Tantrum

Bitcoin flash crashed yesterday following reports that Coinbase is investigating an issue in which its API and website were not functioning properly. Bitcoin’s price fell around $1,400 within minutes before recovering back towards the $13k level. Overnight, the price action bucked the recent bull trend as crypto market participants took profit following days of gains. The move lower also comes ahead of the impending expiration of the CME June futures contract. The curve remains in contango, although the spreads have narrowed significantly.

Read the full article: https://coin360.com/blog/tether-tantrum

[kidis]

Crypto Moves in Mysterious Ways




The macro theme remains very much the same, the uncertainty surrounding global economic growth is a hot topic among the world’s leading central bankers and yet the supposed flows that benefited Bitcoin are no longer present. Press reports continue to point out that China’s central bank (PBOC) could cut its benchmark policy rate for the first time in four years if the US Federal Reserve (Fed) delivers a widely expected cut in late July. The central bank has already been quietly guiding short-term borrowing rates lower for months. However, after rallying like there is no tomorrow, Bitcoin has entered into a phase that has been particularly frustrating for directional and momentum traders; its price swings have been unexpected and stretches of volatility have tended to disappear without much notice.

Read the full article: https://coin360.com/blog/crypto-moves-in-mysterious-ways

[kidis]

Swings and Roundabouts




Let's start off with a brief review of the latest CME Commitment of Traders (COT) report, which shows that as of 7/2/2019, asset manager/institutional long positions are at 188 vs 310 and short positions are at 146 vs 0. In other categories, leveraged long positioning stands at 3,253 vs 3,093 and short positions at 3,326 vs 3,246. Finally, dealers are now net long at 36.

Read the full article: https://coin360.com/blog/swings-and-roundabouts

[kidis]

Watch Your Back




The contango (Bitcoin futures curve) has been nothing short of a god send for miners and a curse for specs. However, just like in Dec’17, it remains to be seen how long the overstretched levels will last. The current dynamic is such that not only are miners able to capitalize on the parabolic advance in prices but they can also lock in prices for the next 3-6 months at a premium over the spot market. This premium ranged from $400-900 at the end of last week before coming down to a mere $300 over the weekend. Given that the CME futures are not traded over the weekend, that is traditionally when more sensitive price action takes place. Nonetheless, the dramatic nature of the collapse in contango delta over the weekend ought to serve as a reminder of the fragile nature of the recent rally.

Read the full article: https://coin360.com/blog/watch-your-back

[kidis]

Hi there!
We released the Liquidity book feature which will help you choose the best exchange for you to buy or sell a certain amount of crypto.
Check it out : https://coin360.com/liquidity-book
We'd like to hear your thought about this feature! Any and all suggestions or criticism are welcome.

[kidis]

Don’t Let Me Down

The Fed cut rates for the first time since 2008, but the move, dubbed a “hawkish cut”, failed to appease the financial markets as equities slumped and the Dollar index rose to an 8-month high. Two Fed officials dissented from the decision, favoring no move on Wednesday, while the press conference further undercut market expectations going forward. Gold bugs and crypto maximalists also came out of the meeting less than impressed with the market reaction, as gold continued to head south, having touched on a 6-year high in June. As a reminder, late last week European Central Banks ditched a 20-year-old agreement to coordinate their gold sales. The so-called Central Bank Gold Agreement (CBGA) was originally signed in 1999 to limit gold sales and help stabilize the market for the precious metal. In a statement, the ECB said that the signatories confirm that gold remains an important element of global monetary reserves, as it continues to provide asset diversification benefits, and none of them currently has plans to sell significant amounts of gold. The deal, originally between 15 central banks, capped the amount signatories could sell each year. Over the subsequent years, prices surged from less than $300 to a high of almost $2,000 in 2011 ($1,400 as of now). Now, of course, in spite of suggesting that there is no desire at the moment to sell off significant amounts, who knows how long that will last? Who would blame them for wanting to capitalize on price appreciation, especially in the face of slowing economic growth and deteriorating finances? At the same time, given the market pressure on policy makers for more rate cuts and the inability to un-invert the bond curve, calls for the adoption of Modern Monetary Theory (MMT) may be revived. The theory states (among other things) that a government that can create its own money, such as the United States, cannot default on debt denominated in its own currency. A government can also pay for goods, services, and financial assets without a need to collect money in the form of taxes or debt issuance in advance of such purchases, is limited in its money creation and purchases by inflation…


Read the full article: https://coin360.com/blog/dont-let-me-down

[kidis]

Reach for the Sky




The Bitcoin rally continues, with the largest cap asset now trading above $12k and the futures curve moving into deeper contango, as crypto market participants continue to react to the recent developments in the FX market. Notably, the Chinese Renminbi weakened beyond 7 per US dollar for the first time since the 2008 global financial crisis, breaching a level that China’s central bank (PBOC) has previously defended as the prospects of a trade deal between the US and China have continued to fade away. Unexpectedly though, the PBOC on Tuesday set daily currency fixing stronger than analysts expected and announced the planned sale of yuan-denominated bonds in Hong Kong. This comes directly after the U.S. labelled the country a currency manipulator, which helped drive the yuan up 0.2% a day after it sank to its lowest point since 2015. The central bank also rejected the accusation it manipulates the yuan. In times of distress, cash is king, and, while the focus may be on Bitcoin and other large cap assets in the crypto space, the growing importance of stablecoins will likely again be on display. Maintaining the peg can be just as challenging in times of high velocity inflows as it is during aggressive outflows, and premiums on the likes of KRW and CNH are to be expected. At the same time, Tether (USDT) may gain further ground against other stablecoins, given its preference during capital flight times.


Read the full article: https://coin360.com/blog/reach-for-the-sky