Bitcoin Bear Makes High Stakes Options Wager on Drop to $110,000
On Tuesday, the unidentified speculator paid about $5 million in premium on the Deribit exchange to buy Bitcoin put options expiring on Aug. 8 at the strike price of $110,000, according to prime broker FalconX, which facilitated the trade. There were two transactions - for 3,000 and 2,000 Bitcoin, respectively - making the full trade size roughly $600 million in notional value.
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Yahoo
23 minutes ago
- Yahoo
If managing investment risk makes me conservative, I'll wear it proudly
Lately, I've been catching a bit more flack on social media for what some interpret as overly conservative — or even bearish — market views. Without context, I get how that perception can form. But this isn't unusual. Those of us who focus on managing risk tend to hear the 'I told you so' chorus after markets rebound. It comes with the territory. Ironically, that kind of sentiment often shows up near the end of a cycle. I remember vividly when bitcoin was hitting new highs a few years ago. I received a voicemail that simply said, 'Enjoy staying poor, old man.' That kind of bravado tends to show up just before things fall apart. It's not a new phenomenon; it's a feature of euphoria. But here's the cold, hard truth: I didn't know where the market was going next, and nor do I now. And neither did the person who left that message. Nor does any other portfolio manager or financial pundit, no matter how confident — or loud — they sound. Because in investing, it ultimately comes down to two paths. Both are valid. But each comes with a cost of entry. Path One: Go long and hold on The first path is to go long highly volatile markets such as the Nasdaq or the tech-heavy S&P 500. If you want to target double-digit annual returns, you have to be willing to accept the large drawdowns that come with it. And you better hope your timing is right because going all-in just before a 1999, 2007, 2019, or 2021-style peak can be devastating, especially if you're retired or nearing retirement and don't want to experience sudden, large drops to your life savings. Let's look at the numbers. Since January 1994, over the past 30.5 years, the S&P 500 has delivered an impressive annualized return of 10.4 per cent. The best year saw a gain of 35.8 per cent. But the worst? A gut-wrenching 37 per cent drop. Now ask yourself: If you had spent 20 years saving $1 million, would you be okay watching it fall to $560,000 during the 2002 bottom? Or to $499,000 in February 2009? Or even to $775,000 in September 2022? The two largest drawdowns were underwater for 4.5 years and took three to more than 3.5 years to recover. If you're young, with decades ahead of you, maybe that's acceptable. You have time to recover, and you can even take advantage of those drops to add more to your portfolio. But if you're in or near retirement, those drawdowns aren't just numbers, they're lifestyle-altering events. They can derail plans, delay retirement, or force you to sell assets at the worst possible time. Path Two: Diversify and sleep at night The second path is to diversify. Let's say you allocate 35 per cent to bonds and five per cent to gold. That's not radical, it's just balanced. Over the same 30.5-year period, this diversified portfolio still delivered a solid 8.4 per cent annualized return. The best year? A gain of 27.9 per cent. The worst? A loss of 20.2 per cent. That's still a drawdown, but it's a very different experience. Your $1 million would have dropped to $780,000 in 2002, $700,000 in 2009, and $880,000 in 2022. Not painless but far more manageable. And for many retirees, that difference is the line between staying the course and panicking. The two largest drawdowns were underwater for only 2.5 years and only took one to more than 1.5 years to recover. That said, 2022 was a wake-up call. It was one of the rare years when both stocks and bonds fell sharply. The S&P 500 lost 24.54 per cent, and the diversified bond/stock/gold portfolio still dropped 20.57 per cent. Bonds, which traditionally act as a cushion during equity selloffs, failed to provide meaningful protection. This was a notable event, and a reminder that even conservative portfolios need to evolve. In today's environment, relying solely on bonds as a risk management tool may no longer be enough. Rising inflation, tighter monetary policy and shifting correlations mean investors must look beyond traditional asset classes. Structured notes, alternatives and other tools can offer more effective ways to manage downside risk without giving up the upside entirely. It's not about being right. It's about being ready The point here isn't to say one path is better than the other. It's to highlight the trade-offs. High returns come with high volatility. Lower volatility comes with slightly lower returns. But the real question is: What can you live with? Risk tolerance isn't just a number on a questionnaire. It's how you feel when your portfolio drops 30 per cent or more. It's whether you can sleep at night, stay invested and avoid making emotional decisions. Because the biggest threat to your portfolio isn't the market. It's how you respond to it. Why I manage risk So yes, I manage risk. Not because I'm bearish. Not because I'm trying to time the market. But because I've seen what happens when people take on more risk than they can handle or are comfortable with. I've seen portfolios implode not because of bad investments but because of bad behaviour: panic selling, chasing returns, abandoning plans. And I've also seen the power of resilience, of portfolios that bend but don't break; of strategies that deliver peace of mind, not just performance. So if that makes me conservative, I'll wear it proudly. Because in the end, investing isn't about winning arguments on social media. It's about helping people live well, sleep soundly and stay invested through the storm. Martin Pelletier, CFA, is a senior portfolio manager at Wellington-Altus Private Counsel Inc., operating as TriVest Wealth Counsel, a private client and institutional investment firm specializing in discretionary risk-managed portfolios, investment audit/oversight and advanced tax, estate and wealth planning. The opinions expressed are not necessarily those of Wellington-Altus. _____________________________________________________________ If you like this story, sign up for the FP Investor Newsletter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
3 Staking Cryptos to Buy This Summer
Key Points Proof-of-stake cryptos pay rewards to investors willing to tie up their assets. The SEC says that most staked cryptos are not securities. Staking rewards on cryptos you plan to hold for the long term can add up. 10 stocks we like better than Ethereum › Staking can be a powerful way to earn yields on certain crypto investments. It's a bit like holding dividend-paying stocks -- investors benefit from regular staking rewards as well as any accumulation in value. Proof-of-stake blockchains use staked coins to validate transactions and keep the network secure. Stakers earn rewards in return for tying up their coins. This makes it a relatively safe way to put your crypto to work. It's different from other -- riskier -- ways to earn interest on your holdings, such as crypto lend-earn schemes. Staking is back in the spotlight this summer after a few years in regulatory purgatory. Uncertainty over whether the interest-earning aspect made staked assets into securities meant some exchanges were reluctant to offer staking services. However, the Securities and Exchange Commission (SEC) has now confirmed that, for the most part, staked cryptos are not securities. If you want to take advantage of the SEC's clearer stance and add some staking cryptos to your portfolio, here are three to consider. 1. Ethereum Ethereum (CRYPTO: ETH) is sometimes referred to as Bitcoin's little sister, or the silver to Bitcoin's gold. But neither of those descriptions does credit to the second-largest crypto by market cap. Ethereum is a smart contract blockchain, meaning that other projects can be built on its ecosystem. Ethereum has come under some criticism because the network can be slow, and fees are higher than those of some of its competitors. However, per DefiLlama, it still dominates decentralized finance (DeFi). With almost 60% of the total locked value, it has significantly more assets in its ecosystem than any other crypto. That includes over 150 stablecoins, which may take off after the passing of the Genius Act. Ethereum is also noteworthy because it made a massive technological leap in switching to proof-of-stake a few years ago. The merge was akin to changing an engine on a moving car, and the successful switch is a testament to the skill of the developers in the Ethereum community. Coinbase staking rewards (July 2024): 2% 2. Solana Solana (CRYPTO: SOL) came to fame in 2021 when it grabbed investor attention as one of the fastest blockchains. Its speed is still one of its big attractions, boasting a potential of over 65,000 transactions per second (TPS). To put that in context, Ethereum processes less than 30 TPS. Even so, CoinGecko points out that Solana has only ever achieved a fraction of that speed in practice. Its non-theoretical TPS is between 1,000 and 2,000. Cost is another key feature: Solana says its transaction fees are only $0.00025. This makes it a popular choice for developers as they can be confident of not racking up huge bills when working on a new project. Similarly, DeFi users won't find they're spending a fortune in transaction fees when, for example, moving assets from one platform to another or exchanging cryptos. On the downside, Solana has faced its share of technical issues -- particularly in 2021 and 2022. It grew so fast that critics worried the network had sacrificed security for speed. Coinbase staking rewards (July 2024): 5.1% 3. Avalanche Avalanche (CRYPTO: AVAX) is another proof-of-stake, smart contract ecosystem that's similar to Solana and Ethereum. It uses three interoperable blockchains, each with a different purpose. The creators say this gives developers more flexibility, while also keeping the network scalable and speedy. Avalanche has not grown as fast as Solana, but it's still in the running. Moreover, Avalanche excels in interoperability -- allowing blockchains to talk to one another. If stablecoins and decentralized finance take off in the coming years due to regulatory clarity, then the ability to move assets easily from one ecosystem to another will be essential. Without interoperability, crypto networks would be siloed. It's a bit like having funds in one bank account and not being able to move them to another. Coinbase staking rewards (July 2024): 4.5% Staking isn't right for everyone Staking can be a great way for cryptocurrencies to build community, enhance security, and generate yield for investors. Proof-of-stake also consumes less energy than Bitcoin's power-guzzling proof-of-work mechanism. You can stake directly on top crypto exchanges, or -- if you're more confident -- do it through some digital wallets. However, don't choose a staking crypto only for the rewards. Research the projects carefully and consider how they might perform in the long term. If you move beyond big hitters like Bitcoin and Ethereum, bear in mind that cryptocurrency becomes even riskier with less-established projects. It's also worth thinking about diversification within your crypto collection. Ultimately, staking is just one element to consider. Should you invest $1,000 in Ethereum right now? Before you buy stock in Ethereum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Ethereum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Emma Newbery has positions in Avalanche, Ethereum, and Solana. The Motley Fool has positions in and recommends Avalanche, Bitcoin, Ethereum, and Solana. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy. 3 Staking Cryptos to Buy This Summer was originally published by The Motley Fool
Business Insider
an hour ago
- Business Insider
Lombard Finance Launches LBTC on Etherlink, Expanding Bitcoin DeFi Opportunities on Tezos L2
London, England, July 28th, 2025, Chainwire Lombard Finance, a leading developer of Bitcoin-based DeFi solutions, has launched its flagship LBTC product on the Tezos L2 network, Etherlink. The deployment is a significant milestone for both Lombard Finance and the Tezos ecosystem, representing the integration of a new asset on Etherlink (in the form of liquid bitcoin), allowing bitcoin liquidity to flow into the ecosystem and across DeFi applications. "Bringing LBTC to Etherlink represents an important step in our multi-chain strategy," said Jacob Phillips, Co-founder of Lombard Finance. "By closely collaborating with the Tezos Foundation and integrating with Etherlink, we will foster a thriving DeFi ecosystem and see LBTC onboarded to top protocols, so users can do more with their Bitcoin." Today's integration with Etherlink enables network users to stake their bitcoin in return for LBTC - a liquid-staking bitcoin token that can be used across Etherlink's range of DeFi applications. LBTC allows holders to maintain their bitcoin exposure while providing the freedom to engage with innovative DeFi protocols at the same time. LBTC is redeemable 1:1 for bitcoin and Lombard is fully audited by renowned industry experts, including Immunefi and Halborn. Additionally, because the BTC backing LBTC is staked to Babylon, LBTC earns a yield, meaning holders earn staking rewards alongside points from Lombard. "In our search for a superior Bitcoin solution for the Etherlink ecosystem, LBTC stood out as the ideal choice," said Anthony Hayot, Head of DeFi Adoption at Nomadic Labs. "We're proud to establish LBTC as the primary Bitcoin asset within our ecosystem, offering our users access to one of the most sophisticated Bitcoin solutions available in the DeFi landscape today." With almost $2B worth of LBTC minted and in circulation across EVM-compatible networks, the integration of LBTC on Etherlink stands to add substantial liquidity to the Tezos-powered ecosystem. LBTC will be accessible across multiple DeFi protocols within Etherlink, including Superlend, Hanji, IguanaDEX, and oku, enabling users to utilize LBTC for a range of DeFi activities. The token will also be integrated into the Apple Farm program, enabling users to earn rewards for using it in their interactions with Etherlink's growing DeFi ecosystem. Commenting, Jean-Frédéric Mognetti, Executive Director of the Tezos Foundation, said, "The Tezos ecosystem has always prioritized innovation, and bringing Bitcoin's liquid staked Bitcoin to Etherlink reflects that foundational vision. This integration will provide BTC holders with new and exciting opportunities in DeFi." The integration with Etherlink is part of Lombard's continued strategy of cross-chain expansion, following its integration with the Sui blockchain in March. LBTC already operates across other notable blockchains, including Ethereum, Sui, Base, and BNB Chain, with 70% of LBTC supply actively deployed in DeFi protocols, including Aave and Morpho, and approximately 75 DeFi integrations across multiple blockchain ecosystems. About Lombard Lombard Protocol was founded with a single vision: to bring Bitcoin securely into DeFi and unlock its full potential. At the heart of the Lombard Protocol's innovation is its flagship product LBTC, the leading Bitcoin liquid staked token. Backed 1:1 by native Bitcoin, LBTC transforms Bitcoin into a secure, stable, and liquid asset for DeFi. It offers unmatched transparency, stability, and usability, making it the trusted collateral for lending, borrowing, and integration into decentralized ecosystems About Etherlink Etherlink is an EVM-compatible Layer 2 blockchain powered by Tezos Smart Rollups technology. It empowers developers to smoothly deploy any EVM codebase and migrate users and assets from Ethereum and other interoperable chains, enabling seamless interaction and asset transfers across different networks Contact
