Latest news with #Derive
Yahoo
18-07-2025
- Business
- Yahoo
What Is Big Money Betting on? Bitcoin $140K, Ether $4K Calls Lead Open Interest
Prices for bitcoin (BTC) and ether (ETH) have risen 29% and 9% this year, and traders are positioning for further upside in the major cryptocurrencies. Data from leading crypto options exchange Deribit showed that traders have placed $2.36 billion in notional open interest in the $140,000 strike call option, making it the most popular bet on the platform. This robust positioning extends to the $120,000 and $130,000 call strikes. In stark contrast, the most popular put option at the $100,000 strike holds only half the open interest of the top call, underscoring the strong bullish sentiment in the market. The ether options paint a similar bullish picture. As of the time of writing, the $4,000 call was the heaviest, with a notional open interest of $650.8 million, according to data source Amberdata. Meanwhile, nearly $280 million was locked in the call option at the $6,000 strike. A call option gives the holder the right but not the obligation to purchase the underlying asset at a predetermined price on or before a specific date. A call buyer is implicitly bullish on the market, while a put buyer is bearish. Market flows over decentralized platforms also paint a bullish picture for ether. On Derive, 25% of ETH's trading volume of the past 24 hours has been concentrated in calls between $3,000 and $4,000 for the July 25 expiry, the exchange told CoinDesk. Additionally, 8% of the July 25 expiry open interest is locked in the $4,000 call. "[Its] a strong signal that traders are aligned on a fast, continued breakout and reflects a growing appetite for leveraged long exposure as bullish conviction builds," Dr. Sean Dawson, head of research at Derive, told CoinDesk. The bullish bias for ETH is likely catalyzed by positive regulatory developments in the U.S, particularly the passage of the GENIUS Act stablecoin regulation. The bill is said to come down heavy on yield-bearing stablecoins, marking a positive pivot for the Ethereum-dominated decentralized finance. "We anticipate two major shifts in a post-GENIUS landscape. First, treasurers seeking crypto-denominated yield will increasingly turn to native ETH staking and transparent restaking vaults. Second, yield-bearing tokens will evolve into clearly defined, auditable assets—distinct from stablecoins and unburdened by legacy regulatory assumptions," Daniel Liu, CEO of Republic Technologies, said in an email. "Both trends are likely to increase transaction activity and fee generation on Ethereum, reinforcing the long-term value of ETH and strengthening the case for institutional treasuries holding it," Liu added.
Yahoo
14-07-2025
- Business
- Yahoo
Bitcoin, Ether Traders Bet Big With Tuesday's U.S. Inflation Data Seen as Non-Event
Traders are betting big on bitcoin (BTC) and ether (ETH) as the BTC rally rages on, and observers downplay Tuesday's U.S. inflation data as a potential barrier for the bull. BTC, the leading cryptocurrency by market value, rose to record highs above $121,000 during Monday's Asian trading hours, representing a 2.7% gain on a 24-hour basis. The new high took the year-to-date gain to nearly 30%, with prices up 13% this month alone, according to CoinDesk data. Ether followed suit, rising 3% to near $3,050, and other major coins such as XRP (XRP), Dogecoin (DOGE), BNB (BNB), and Solana's SOL (SOL)boasted 3% to 5% gains. Activity on the leading decentralized options platform Derive backed the bullish price action, with significant open interest concentrated in the $130,000 call option. "Almost 20% of the open interest on Derive's Sept 26 expiry for BTC is concentrated at the $130K call, suggesting traders expect gradual but persistent price rises over the next three months," Nick Forster, founder at Derive, said. In ETH's case, 45% of ETH's open interest on the July 18 expiry is concentrated in the $3,400 strike, with that one strike making up 16% of ETH weekend volume, Forester explained, calling that a sign of traders expecting a breakout in the second-largest cryptocurrency. "While volatility remains moderate compared to 2020-21, directional conviction is growing, especially in ETH. We're watching closely for confirmation of this trend over the coming week," Forster noted. Options listed on centralized giant Deribit painted a similar bullish picture for bitcoin and ether, with calls or bullish bets trading pricier than puts across tenors. The main event of this week's macro calendar is the U.S. consumer price index (CPI) inflation data due Tuesday. According to FactSet, the June CPI is forecast to have risen 0.23% on the month, amounting to a 2.6% annualized growth, up from May's 2.4%. The annualized core CPI, which excludes the volatile food and energy component, likely rose 3%. Both traditional and crypto market investors have closely watched it for the past four years, as it heavily influences the Federal Reserve's interest rate decisions. However, this time, the crypto market may not be impacted, according to the founders of the newsletter service LondonCryptoClub. They believe fiscal profligacy, a rising global money supply, and a soft U.S. dollar are driving the ongoing bull market and not the Fed rate cuts story. "We don't think it matters. We're still in a 'Goldilocks' macro environment with a slowing, not collapsing US economy and whilst inflation remains a little sticky, it's not accelerating to a point that would change the direction of travel at the Fed from rate cuts to hikes. Meanwhile, the weaker dollar continues to feed into easy financial conditions and is helping facilitate the expansion in global money supply," the founders told CoinDesk. They added that with the Trump administration doing a complete 180 on deficit reduction, we are back running the fiscal dominance playbook of the Biden era." Moreover, President Donald Trump's big beautiful tax bill, which recently passed in Congress, is projected to add over $3 trillion to the already record-high national debt over time. "So the drivers for risk and bitcoin are currently not dominated by expectations for Fed rate cuts, but this fiscal dominance story, rising global money supply, alongside a softer dollar. Therefore, Sensitivity to the Fed and, by extension, the CPI data is much reduced," the founders told CoinDesk. This week, dubbed as the 'Crypto Week' by the Trump administration, could see the House of Representatives debate several crypto bills, including the Genius Act, Clarity Act, and the Anti-CBDC Surveillance State Act. Positive developments on these fronts are likely to insulate bitcoin and the wider crypto market from macro developments. The relentless corporate adoption of bitcoin also helps. "The bitcoin market is moving quite strongly due to demand from my corporate treasuries and associated speculation. In addition, this week has been dubbed 'crypto week' by the Trump administration. I expect positive news to come from this. I think the inflation numbers, so long as they are somewhere in the range of normal, will have little impact on bitcoin," Alexander Blume, CEO at the SEC-registered investment adviser Two Prime, told CoinDesk. "One, the bitcoin market is moving independently of the broader economy. Two, the increasing perception of the FED as politicized blunts the impact these numbers have on rate cuts anyway," Blume in to access your portfolio
Yahoo
30-06-2025
- Business
- Yahoo
Bitcoin DEX Traders Position for Downside Volatility With $85K-$106K Puts, Derive Data Show
Bitcoin (BTC) options flow on the leading decentralized onchain platform shows that traders are preparing for downside price volatility over the next couple of weeks. As of Monday, 20% of the platform's total BTC options open interest, valued at over $54 million, was concentrated in the July 11 expiry put options with strikes at $85,000, $100,000, and $106,000, according to data shared by Derive. "This suggests that traders are positioning for potential downside, possibly bracing for macro uncertainty or profit-taking after recent strength," Nick Forster, founder of Derive told CoinDesk. A put option gives the holder the right to sell the underlying asset, such as BTC, at a predetermined price on or before a specified future date. A put buyer is implicitly bearish on the market, seeking to hedge against or profit from a potential decline in the underlying asset's price. Open interest refers to the dollar value of the number of active options contracts at a given time. Forster added that put options accounted for over 70% of the trading volume in the past 24 hours, a sign that "BTC traders are on the defensive." The bearish flow contradicts activity on the centralized crypto options giant Deribit, where traders abandoned the July expiry put options while buying back upside bets or call options. The adjustment happened as BTC's price rose over 7% last week, marking a strong bounce from sub-$100,000 levels. "We observe the dumping of no longer required $100,000 and below puts in July and buyback (blue) of $108,000-$115,000 plus calls. With a calmer environment and the upcoming July 4th U.S. long weekend, more inventory was sold onto dealers," Deribit noted on X. Traders on Derive leaned bullish on ether, with about 30% of open interest concentrated in the $2,900 strike call options and another 10% in the $3,200 call. "This positioning seems to be driven by anticipation of ETHCC in Cannes – a major event historically associated with product announcements and ecosystem growth. Traders are clearly expecting catalysts that could drive upward momentum," Forster noted. 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
14-05-2025
- Business
- Yahoo
Synthetix Considers Purchase of Options Platform Derive in $27M Token-Swap Deal
Ethereum-based derivatives powerhouse Synthetix is considering buying options trading platform Derive in an token-for-token deal valued at $27 million that would see the project absorbed back into the protocol that gave it birth. The proposal, SIP-415 on Synthetix and DIP on Derive, needs to be approved by both communities and would see Derive's treasury, codebase and operational stack incorporated into Synthetix. The deal marks a rare instance of a token swap-based acquisition in decentralized finance (DeFi), and is being pitched as part of Synthetix's growing ecosystem. Derive (DRV) token holders would receive 27 newly issued SNX tokens for each DRV they own. The tokens are subject to a three-month lockup and nine-month linear vesting schedule. Synthetix would mint up to 29.3 million SNX, amounting to roughly 8.6% inflation of its current token supply. Derive, originally Lyra, went live in 2021 and was spun out from Synthetix. It has previously moved away from the protocol, ending support for Synthetix's sUSD stablecoin, switching to GMX for liquidity, and launching its own perpetual futures product. Early responses from the Derive community showed dissatisfaction with the idea. 'I don´t see any benefit for Derive on it,' one commenter said. 'In the other hand (sic), it all looks great and advantageous for Synthetix.' Another user took aim at the proposed valuations. 'That exchange rate is a poor reflection of the value of derive as a platform,' commenter 'Ramjo' said. 'And then have the nerve to put a long vesting period on it AS WELL.' DRV prices are down 20% in the past 24 hours, data on CoinGecko shows, while SNX is up 7%.
