Bitcoin futures open interest over at the Chicago Merchantile Exchange, better known as CME, has surged by 3,000% since the start of May 2020.
What’s fueling the sudden spike in interest in the first-ever cryptocurrency and can it continue into the future?
Bitcoin CME Futures Open Interest Grows By 3,000% in May 2020 Alone
The arrival of Bitcoin futures trading coinciding with a mainstream media blitz, retail FOMO, and the promise of free coins from a hard fork created the perfect storm for the first-ever cryptocurrency to reach its all-time high of $20,000 and put the asset class on the map.
The Chicago Merchantile Exchange first listed its cash-settled Bitcoin futures product on December 18, 2017, marking the top of the rally and a record high that has never been retested even after nearly three years of price action.
CME Group’s Leo Melamed, a senior executive at the institution focused trading desk, claimed that its new product would “tame Bitcoin.”
Tame Bitcoin it did. Since its debut, Bitcoin price has been in a bear market since. Shortly after the debut, interest in futures began to dwindle, to the point where another major futures platform that helped inflate the 2017 bubble, the Chicago Board Options Exchange (CBOE) did away with the contract completely.
CME Group kept its running, and it has recently picked up in interest once again, surging by as much as 3,000% in May 2020 alone, according to data from Arcane Research in partnership with Skew analytics.
Speculation Surges Amidst The Halving, But Lack Of Decision Keeps OI High
But why are CME traders suddenly showing such remarkable interest in Bitcoin again?
The surge occurring during the month of May 2020, almost certainly indicates that the boost in futures interest was driven by speculators positions themselves related to the halving.
It’s long been speculated that the halving would result in a powerful uptrend in Bitcoin, but a miner capitulation driven selloff couldn’t be ruled out.
A large move either way was expected, but thus far, Bitcoin price has mostly been trending sideways. Some industry experts called for such conditions, as the diminished supply was offset by an increase in miners selling.
It’s when miners are done capitulating that the network is then cleansed, and an uptrend can begin.
The lack of an explosive move to either side has left traders scratching their heads, and open interest piling on.
An eventual break will result in fireworks, according to volatility reaching historical lows as indicated by Bollinger Band Width and correlation metrics with the Nadsaq composite index.
When the break does occur, one side of the herd will get crushed, while the other’s profit. The resulting move, whatever it is, will hopefully be enough to keep open interest strong on CME thereafter.
BitTorrent Launches BitTorrent X Ecosystem Following DLive Acquisition
BitTorrent Inc., the firm behind the massively popular BitTorrent protocol and app, has announced its acquisition of blockchain-powered live streaming platform DLive.
DLive will now form part of the newly established BitTorrent X ecosystem, which also includes the BitTorrent File System (BTFS), a service used for distributed file storage and retrieval, as well as the BitTorrent client, which will be utilized delivering these services and more to users.
Transitioning to BitTorrent X
Since the BitTorrent protocol was first developed in 2001, it has become the most successful peer-to-peer data distribution system. It has already been used by well over 2 billion users globally — including massive enterprise users like Facebook, Twitter, and Blizzard.
The BitTorrent file-sharing protocol also appears to be an inspiration that edged Satoshi Nakamoto towards the development of Bitcoin (BTC), as described in a message posted by Nakamoto on the Cryptography Mailing List.
After being acquired by TRON CEO Justin Sun in 2018, BitTorrent has gradually been woven into the rapidly growing TRON blockchain ecosystem, with the BitTorrent File System (BTFS) now being used by the TRON blockchain and DLive as a decentralized storage solution.
With the acquisition of DLive, BitTorrent is now ready to move into the next stage of its expansion: the launch of BitTorrent X — an ecosystem comprised of BTFS, the BitTorrent (and μTorrent) apps, the BitTorrent token (BTT), and now DLive.
DLive is a leading blockchain-powered live streaming platform and currently has more than 7 million users and 200,000 content creators.
Some of its top creators include PewDiePie, tugaygokyt, and enesbatur — each of whom has hundreds of thousands of followers thanks to their popular gaming and e-sports live-streamed content.
“BitTorrent X is the next step in establishing a truly decentralized internet,” said Justin Sun, founder of TRON and CEO of BitTorrent. “In one big step, the BitTorrent X ecosystem may drive blockchain-related tools to billions of devices. Hundreds of millions of users will have access to the next era of tools to share, store, and stream their content directly to anyone across the web.”
According to the announcement, the BitTorrent X ecosystem will be powered by the BTT cryptocurrency, which is already used for incentivizing users to share their storage space on the BTFS, and can be staked on DLive to earn rewards.
It is expected that the arrangement will allow potentially billions of users to access decentralized file sharing and live streaming services, with the same simplicity and ease of use users expect from BitTorrent and TRON applications.
“The acquisition marks a new start for DLive.tv. We are more than excited to join the BitTorrent ecosystem as the collaboration will provide us with more innovative solutions to empower content creators and reward communities.” says Charles Wayn, CEO of DLive, “Together with the BitTorrent team, we look forward to bringing disruptive innovations to the digital media space, and furthermore create value for our global community.”
The last few months have been packed full of news coming from BitTorrent and DLive. Last month, it was announced that TRON would now use the BitTorrent File System (BTFS) as the data storage solution for TRON nodes, making onboarding new nodes to the network much simpler and faster. Likewise, DLive recently completed its 2 million Lemon #StayAtHome giveaway, helping to supports its viewers and streamers during the COVID-19 lockdown.
Streamity: Leveraging Binance Smart Chain to Provide Myriad of Services
DeFi has no doubt exploded in 2020 as the industry saw unprecedented growth all the way from March. In fact, data suggests that there’s currently around $11.2 billion locked in various lending protocols in the ecosystem.
While this may have somewhat surprised many, it does come as a natural and logical extension of the crypto field. After all, that’s the general purpose of cryptocurrencies – to separate state and money through an immutable and decentralized ledger.
Expectedly, though, many companies started popping up, providing various DeFi-based services in a range of fields.
Streamity is one of those projects. It leverages the blockchain of the world’s largest cryptocurrency exchange – Binance Smart Chain, to offer a myriad of financial, healthcare, sports, and science services.
What is Streamity?
As stated in the project’s official whitepaper, Streamity is an autonomous company with a community management system built on the Binance Smart Chain. It aims at providing services in the fields of science, healthcare, finance, education, and sports.
The team builds a range of different products that interact with the Binance Smart Chain and the protocol’s native token called STM.
As the interest in the entire field is only increasing, so should the demand for the STM token. The team holds that a community-led ecosystem with constant development and self-sufficiency would be very effective. Presently, the STM token is en route to this mission, and it’s created through a governance system that would actively guide Streamity forward.
More About the STM Token
Apart from the above, Streamity’s native token, STM, enables its holders to have a direct impact on the development of the ecosystem through voting. Users can easily vote for each of the proposals. They can also delegate these rights by transferring the tokens to a third party.
The minimum amount of STM tokens needed to submit a protocol proposal is 1% of the total volume of all STM tokens.
In terms of distribution, 40% of the supply will go to the community members’ public reserve – this adds up to 39.6 million STM tokens. 40% will be in free circulation, which adds up to another 39.6 million, and, lastly, 20% is reserved for team members and employees – a total of 100 million STM.
When it comes to the profit distribution, 50% goes for replenishing the public reserve, 48% goes to team members and employees, and 2% goes to charity.
Now, it’s worth noting that the public reserve will be regularly distributed by voting for grants, new liquidity pools, management incentives, and whatnot.
To incentivize early liquidity providers, 10 million STM will be allocated as a liquidity replenishment program launched on October 12th, 2020. It consists of 5 pools, namely:
Various Services on Streamity
Tokenomics aside, Streamity is aimed at providing a range of different services, as mentioned above. With this said, here are a few of the projects that are planned and launched.
Right off the bat, the platform has seen a P2P cryptocurrency exchange called Streamdesk that guarantees the success of the transaction through the integration of smart-contract architecture and an APY of payment systems. It’s already launched, and a transition to BSC is also in plans.
Project Health is another platform created for online training and exercises of different types with a system for sports achievements and rankings. It should be launched in the third quarter of 2021.
Duel Control is an app oriented toward entrepreneurs, middle managers, and managers. It aims at improving the development of managerial competencies, the psychology of influence, strategic thinking, and so forth. The platform should be launched this month.
The Talent Exchange Network is a platform that’s already launched, and it represents a social network with ranking systems of organizations and users, the values of which are increased through proper education.
Bitcoin Could Register Second Highest Monthly Close in History: Peter Brandt
Bitcoin has been on fire during the past 48 hours, thanks to the ‘PayPal crypto on-ramp launch news.’ What is even more interesting to note is BTC’s future market outlook.
Veteran trader and analyst Peter Brandt said that the cryptocurrency is about to log its second-highest monthly close since it started trading first. Brandt says this is a direct result of institutional involvement.
Bitcoin Poised To Log Second Highest Monthly Close
An accomplished forex and stocks trader with more than 40 years of experience under his belt, Brandt always delivers unbiased trading insights for bitcoin and other cryptocurrencies. And the community greatly respects him for the same.
The latest BTC rally made him evince another trend that will significantly boost the confidence of bitcoin bulls. According to Peter, bitcoin will successfully register its second-highest monthly close if it maintains its momentum through October.
Bitcoin — IF the current gains hold through end of Oct — is poised for the second highest monthly close ever$BTC
Institutions are increasingly involved in Bitcoin ownership
Institutions mark the value of their assets monthly pic.twitter.com/L71AMvvann
— Peter Brandt (@PeterLBrandt) October 21, 2020
BTC Rallying On The Back Of Institutional Involvement
Also, the veteran trader attributed this rally to the increasing involvement of institutions. What he meant is that in 2017, institutional investment in the bitcoin market was not significant. But this year, it’s different. Market analysis firm Skew’s latest update on surging open interest in the bitcoin options space corroborates this claim.
— skew (@skewdotcom) October 22, 2020
Although there is $1.8 billion worth of unsettled BTC options contracts on Deribit, CME options traders have exchanged contracts worth $441 million. Given the sheer high number of hedge funds and institutional investors that the platform serves, this is pretty much a decent testimony of the degree of bitcoin’s maturity as an asset.
A Brief Pullback Is On The Cards However
Peter Brandt’s bullish outlook for Bitcoin may foment some serious buying. Still, a reputed TradingView analyst named ‘Wyckoffmode'(WM) observed that BTC would undergo a brief pullback before rallying up higher.
Backing his claim through technicals, WM said that on a 12-hour timeframe BTCUSD chart, the Relative Strength Indicator (RSI) ‘White Energy’ line after touching 56, is heading for levels near 50.
This might cause the cryptocurrency to log a brief pullback after such a face-melting rally to $13,000. According to WM, ‘a look at the current levels of the Red and White Energy in the 24h, 2-Day, 3-Day, and 4-Day time frames’ further reinforces the ‘pullback scenario.’
The trader says that bitcoin will experience sustained ‘upward pressure’ before the White Energy line travels to the aforementioned 50 level. This is a historical trend that is observable across the entire bitcoin price chart over multiple time frames.
Blockchain1 month ago
Bitcoin price volatility expected as 47% of BTC options expire next Friday
Blockchain1 month ago
Bitcoin Bouncing From Bull Market Support Points To 2021 As The Year Of Crypto
Blockchain2 months ago
Market Wrap: Bitcoin’s Powell-Induced Price Swing; Ethereum Still High on Gas
Blockchain1 month ago
Ethereum: Is the HODLing in yet?
Blockchain1 month ago
Blockchain Bites: Is DeFi an Inside Deal?
Blockchain1 month ago
Hackers Have Been Trying To Crack Bitcoin Wallet Worth $750 Million But Here’s The Catch
Blockchain1 month ago
YFI Founder Puts Himself Forward for Uniswap (UNI) Delegation Duties
Blockchain3 months ago
Wealthfront Lures Millenials With Crypto Memes and Tactics