Bitcoin battles $35K as traders agree volatile BTC price move incoming

Business

Cointelegraph 07 July, 2021 - 08:17am 27 views

When is London hard fork?

Ethereum's long-awaited London hard fork is likely to launch on Aug. 4 between 13:00 UTC (9 a.m. ET) and 17:00 UTC, with block 12,965,000. Many Ethereum enthusiasts are excited for the delayed release, while some are watching on with “cautious optimism.” Yahoo FinanceEthereum’s London Hard Fork Expected to Launch on Aug. 4

"This probably has more to do with leveraged funds hedging their long positions in GBTC shares using the CME futures,” one trader said.

The Commodity Futures Trading Commission (CFTC) released data on Friday that showed leveraged funds held a net short position of 10,000 contracts in the week ended June 29. That is down from about 30,000 in December and represents the lowest tally of net shorts since September, according to data source Skew.

“As they unwind GBTC positions during the unlock windows, and do not add further trades due to the Grayscale premium trading at a negative, we have seen the need to use these derivatives decline,” Blom said.

The Grayscale Bitcoin Trust, the world’s largest digital-assets fund manager, allows institutional investors to gain exposure to bitcoin through shares in the trust, which currently holds 654,600 BTC. (Grayscale is a unit of Digital Currency Group, which also owns CoinDesk.)

Investors can buy GBTC shares directly at the net asset value (NAV) in daily private placements by depositing bitcoin or U.S. dollars. The shares can be sold in the secondary market only after a six-month lockup period.

Until February, the GBTC shares traded at a significant premium to NAV for various reasons. So accredited investors took carry trades. That means they deposited bitcoin they owned or had borrowed into the trust, and in return they got shares at NAV, hoping to offload them at a premium in the secondary market at the end of the six-month lockup period. The obvious risk associated with this type of setup is a potential fall in bitcoin’s price, or a narrowing or erosion of the GBTC premium. 

As such, many carry traders hedged their risk by taking short positions in the CME futures, which are now being squared off alongside the release of the GBTC shares locked in January. 

According to data tracked by bybt, nearly 40,000 GBTC shares will be released this month. Investors are expected to liquidate these shares in the secondary market, squaring off the long leg of the carry trade, and use the proceeds to buy back bitcoin to return to the base portfolio or pay back the borrowed coins. 

“Funds which bought GBTC shares at NAV also took shorts in CME futures to hedge against the risk of a sell-off in bitcoin,” Charlie Morris, chief investment officer at ByteTree Asset Management, told CoinDesk. “Now, this trade is being unwound.” 

Another reason for the continued decline in the net shorts is the low incentive to take fresh GBTC carry trades. With the GBTC shares still trading at a discount of 10% to NAV, investors, particularly those with a longer term horizon, may choose to buy GBTC shares in the secondary market rather than buy bitcoin and turn it over to the trust. 

“Investors looking for long-term passive bitcoin exposure are probably better off buying GBTC over spot bitcoin since you get paid to wait more via the discount than you pay in excess fees,” David Grider, strategist at investment research firm FundStrat, wrote in an email.

Lastly, the cash-and-carry arbitrage, which involves buying bitcoin in the spot market and selling bitcoin futures, has lost its shine with three-month futures premium now in the single digits. So trading firms, including the $135 million crypto hedge fund LedgerPrime, are no longer interested in taking these carry trades. 

“The spread that was evident earlier in the year has evaporated, and with potential capital inflows into DeFi (decentralized finance) ecosystems, courtesy of Aave– and Compound Finance-inspired institutional offerings,” Denis Vinokourov, head of research at Synergia Capital, said. 

“The current futures structure does not offer enough risk/reward for institutional investors to deploy their capital to.”

Many trading firms took carry trades during the height of the bull run in mid-April when the three-month futures were trading at a premium of over 20% on the CME and nearly 40% on Binance and other non-regulated exchanges. 

Looking ahead, net shorts may spike if the bull returns to the bitcoin market, lifting premiums and making carry trades attractive again.

Read full article at Cointelegraph

China’s Crackdown Is Forcing Miners to Dump GPUs on Secondhand Market: Report

Yahoo Finance 07 July, 2021 - 10:33am

The number of listings on China’s most prominent marketplace apps has increased in the last month and a half, The Block reported Wednesday.

Prospective sellers are having to lower their asking prices in a bid to sell the units.

The trend is a reversal from earlier this year, when supply of GPUs was more strangled and Ethereum miners started turning to gaming laptops with built-in GPUs, much to their manufacturers’ chagrin.

Despite the crackdown on bitcoin mining in China, there are signs that smaller mining farms in the Sichuan province are still operating with a direct supply of electricity from hydropower plants, The Block said.

While bullish on ether, Goldman denied cryptos' superiority to gold when it came to taking the top spot among safe-haven assets.

Chinese researchers want to send more than 20 of China's largest rockets to practice turning away a sizable asteroid - a technique that may eventually be crucial if a killer rock is on a collision course with Earth. The idea is more than science fiction. When it arrives a year later, the NASA spacecraft will crash-land on the smaller of the two rocky bodies to see how much the asteroid's trajectory changes.

Vernon Yuen/NurPhoto via GettySince she graduated from college last year, Ziyi Zuo has left two well-paid jobs in Shenzhen and Beijing. The 22-year-old who is now unemployed has returned home to Tianjin in northeast China to embrace “lying flat,” a growing movement in China where young people are rejecting traditional Chinese competitiveness.The Chinese Communist Party has clamped down on people sharing the new philosophy online but in an increasingly rigid social structure with a large wealth g

The Taliban was reportedly surprised by its sudden surge of success in Afghanistan

(Bloomberg) -- China’s technology giants have seen a combined $823 billion wiped from their market value since a February peak, with Beijing’s expanding crackdown on the sector fueling investor concern that the selloff is far from over.Authorities on Tuesday issued a sweeping warning to the nation’s biggest companies, vowing to tighten oversight of data security and overseas listings just days after Didi Global Inc.’s contentious decision to go public in the U.S. That has put further selling pre

(Bloomberg) -- China, the world’s top commodities consumer, pledged to release more base metals from its state reserves after completing a first batch of sales in its latest effort to rein in surging raw material costs.More sales will be arranged in the near term to ensure market stability, the National Food and Strategic Reserves Administration said in a statement on its website Wednesday.The first release of metals in over a decade included 20,000 tons of copper, 30,000 tons of zinc and 50,000

‘Securitization,’ is an obscure term that could have a big impact on the growth of clean energy.

Two German men arrested in Thailand are expected to be extradited to Germany on suspicion of being part of a European drug trafficking gang, immigration police said Wednesday. Police Maj. Gen. Phanthana Nutchanart identified the two suspects as 42-year-old Alex Kartun, a dual German-Russian national, and 38-year-old Alexander Wolfien, a German citizen.

The country's prosecutor general said crypto is increasingly used for bribes.

Michael BorgersThe Russian-speaking gang that set off a chain reaction of ransomware attacks around the globe last Friday might be in a little over its head, experts tell The Daily Beast.The hackers, known as the REVil ransomware gang, went after Kaseya, a firm which sells software to other companies. By infiltrating Kaseya’s customers—many of which are IT providers—the hackers have also been able to hit those companies’ clients with malicious software that locks them out of their machines unles

A powerful mudslide that killed at least seven people and destroyed dozens of homes in a Japanese seaside resort started in an area with a history of land alterations, and a massive mound of soil piled there broke off and worsened the devastation, officials said Wednesday. Twenty-five people were still unaccounted for since the mudslide hit Saturday, according to Shizuoka prefecture and Atami city officials. Determining an accurate number of missing is difficult because many Atami residences are second homes or vacation rentals.

Large bitcoin miners fleeing China to escape a state crackdown will take many months to start operating again, as data centres from Texas to Siberia scramble to secure space and power for them, while many smaller players may struggle to move at all. Bitcoin is created or "mined" by high-powered computers usually at data centres in different parts of the world, competing to solve complex mathematical puzzles in a process that makes intensive use of electricity. The industry in China, which accounted for as much as 70% of the world's capacity, is in disarray after the State Council, or cabinet, announced a crackdown on bitcoin trading and mining in late May targeting financial risks.

UFC has signed a 10-year, $175 million partnership with cryptocurrency marketplace Crypto.com, according to someone familiar with the terms, the biggest sponsorship in the promotion’s history. Crypto.com will be UFC’s first-ever global fight kit partner, meaning its branding will appear on the uniform of every UFC fighter who steps into the octagon. The partnership begins […]

(Reuters) -The collapse of a condominium tower near Miami will set off years of litigation as victims and their families look to find fault among the building's management as well as engineers, architects and others, according to legal experts. Disaster struck in Surfside, Florida, on June 24 as a major repair project was beginning, although the cause of one of the worst residential construction failures in the United States is likely to have many contributing factors stretching back years. "Whether it be architects, engineers or contractors that had any involvement in this building, we’ll be looking at everybody to hold each party responsible for their negligence," said Daniel Wagner, a real estate lawyer in south Florida, who declined to say if he was representing anyone involved in the collapse.

The trouble with recalls is that they are driven by spite. Unfortunately, California voters don't have meaningful alternatives given the GOP dumpster fire.

Spending on crypto-related cards is now its own category at the payments giant, said Visa’s Cuy Sheffield.

A super-rare version of The Legend of Zelda for the Nintendo Entertainment System is getting a lot of attention at Heritage Auctions, where pre-bidding has seen the 1987 NES cartridge surpass $100,000 before the auction’s official July 9 start date.

(Bloomberg) -- Jeff Bezos is leaving the rest of the world behind when it comes to wealth accumulation.The world’s richest man reached a record $211 billion net worth Tuesday after Amazon.com Inc. shares rose 4.7% after the Pentagon announced it was canceling a cloud-computing contract with rival Microsoft Corp. The rally raised Bezos’s fortune by $8.4 billion, according to the Bloomberg Billionaires Index.The last time anyone in the Bloomberg ranking neared this amount was in January, when Tesl

HoopsHype ranks the Top 15 players in the 2020-21 NBA Playoff MVP Race, with Paul George exiting in the Top 3.

Business Stories