Crptocurrency
Good News from Coinbase for Bitcoin and Cryptocurrencies

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Good news arrived yesterday for Coinbase customers in the United States who wish to speculate on Bitcoin and cryptocurrency markets.
After months of threatening to leave the country, the largest US exchange confirmed yesterday that it is more than willing to stay and develop its crypto service offers focused specifically at that market.
Bitcoin Futures Trading Is Now Regulated, According To Coinbase
The good news is that Coinbase Financial Markets now allows US traders to trade leveraged regulated crypto futures.
Coinbase Financial Markets (CFM) is Coinbase’s subsidiary that has gained NFA approval to provide regulated derivatives products such as cryptocurrency futures.
In this regard, the exchange launched Coinbase Advanced in September, which is a specialized retail trading platform that allows the exchange to finally provide its users the exchange of regulated perpetual futures contracts.
Coinbase Advanced was previously exclusively available to non-US users, but it will now be available to them as well.
It should be noted that the majority of Coinbase’s customers are from the United States, so it is critical that they can also provide this service to them.
Coinbase Advanced’s futures contracts are designed specifically for retail traders, with denominations of one penny of Bitcoin and one tenth of Ethereum.
These are financial derivatives that allow traders to hedge risk, diversify their portfolios, trade with leverage, and bet on the market’s predicted direction (up or down).
Read Also: Coinbase Introduces Regulated Leveraged Crypto Futures for US Traders
The Coinbase Platform
It is worth noting that the Coinbase Advanced platform is integrated into the Coinbase exchange, allowing traders to access both spot and futures markets with a single account and login.
In fact, this is fairly similar to what happens on other crypto exchanges, although this is by no means a given given that these are services marketed to the general public in the United States.
For example, Binance’s international platform does not accept users from the United States, prompting the creation of a separate platform (Binance US), which has since been decommissioned due to regulatory issues.
Despite the collapse of FTX and the partial withdrawal of Binance US from this specific market, it must not have been easy for Coinbase to obtain all of the necessary approvals to include such a service on its exchange.
It’s been about a year since FTX’s crypto futures exchange platform, one of the most popular in the United States, was shut down.
When logging in to advanced.coinbase.com, US customers will now notice the new Futures area in the left-hand menu, among Spot, Wallet, Orders, and Other.
To trade on coinbase.com/futures, one must first apply and be approved after supplying certain personal information.
On Coinbase Advanced, all futures contracts are settled in USD.
Cryptocurrency Futures
Speculators prefer cryptocurrency futures to traditional spot trades for two reasons. The first and most obvious benefit is that they enable leveraged speculating, or borrowing cash to get larger returns.
However, because this also entails the possibility of bigger losses, it is only recommended for experienced traders, as losing everything in this manner is anything but tough.
The second option is for more experienced traders to bet on both increases and declines.
Because of futures, it is possible to open both long positions, which bet on price increases, and short positions, which gamble on price drops. This is a capability that is completely lacking in spot markets, while there are some specific moves that can enable something similar.
However, the combination of leverage and long/short positions creates an unrivaled package in spot markets.
In fact, the majority of speculators prefer to trade in the futures market. Suffice it to say that in the last 24 hours, there were around $12.4 billion in deals on Binance’s spot market, and up to $58 billion on the same platform’s futures markets.
Medium- to long-term investors prefer spot markets, whereas short-term speculators prefer the derivatives market (futures and options).
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Binance Lists ChainGPT (CGPT): Unlocking a New Era for AI-Powered Blockchain Solutions

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$88K Critical for Bitcoin Momentum

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Bitcoin’s price trajectory is at a pivotal juncture, with $88,000 emerging as a key level for sustaining market momentum, according to on-chain analytics firm Glassnode. Using the UTXO Realized Price Distribution (URPD) metric, Glassnode emphasized the significance of the Short-Term Holder (STH) cost basis, noting minimal trading volume below this threshold.
The $88,000 level serves as a critical psychological and technical support, and a decisive loss could pave the way for further downside. This article explores the importance of this metric and what it could mean for Bitcoin’s future price movement.
Understanding Bitcoin’s STH Cost Basis
The Short-Term Holder (STH) cost basis represents the average price at which recently acquired Bitcoin has been purchased. This metric is essential for analyzing:
- Price Momentum: Indicates the health of recent buyer confidence.
- Support Levels: Highlights crucial price points where short-term investors are likely to defend positions.
At $88,000, the STH cost basis underscores its significance as a level where short-term traders might capitulate if breached, potentially triggering a larger sell-off.
The Role of the URPD Metric
Glassnode’s UTXO Realized Price Distribution (URPD) metric maps the distribution of Bitcoin trading volumes across different price levels. Key insights from the current analysis include:
1. Minimal Volume Below $88K
- Glassnode’s data reveals limited trading activity beneath $88,000, suggesting weak historical support in this range.
2. Vulnerability to Downside Pressure
- A breakdown below $88,000 could lead to accelerated selling, as short-term holders exit positions to minimize losses.
Why $88K Is Critical for Bitcoin
1. Psychological Benchmark
- Round numbers like $88,000 hold psychological significance for traders, influencing decision-making and market sentiment.
2. Technical Relevance
- The STH cost basis aligns closely with support and resistance levels derived from historical price action, making it a reliable marker.
3. Momentum Indicator
- Holding above $88,000 would demonstrate resilience, while a breach could signal a shift in momentum toward bearish conditions.
Potential Scenarios Based on $88K Level
1. Holding Above $88K
- Sustaining this level could reaffirm Bitcoin’s bullish momentum, encouraging accumulation by both short-term and long-term holders.
- Positive macroeconomic news or institutional support could bolster price stability.
2. Breaching $88K
- A decisive loss of $88,000 might lead to panic selling, increasing volatility and pushing Bitcoin toward lower support levels.
- Traders may target $85,000 or lower as the next critical support zone.
Market Sentiment and Influences
1. Institutional Activity
- Institutional investors closely monitor key levels like $88,000, adjusting strategies based on market strength or weakness.
2. Broader Economic Factors
- Macroeconomic elements, including interest rate policies and inflation data, continue to impact risk assets like Bitcoin.
3. Short-Term Trader Behavior
- As the primary holders at this cost basis, short-term traders play a pivotal role in determining Bitcoin’s near-term price movements.
How Traders Can Respond
1. Monitor Key Levels
- Keep a close watch on Bitcoin’s behavior around $88,000, as this level is crucial for gauging momentum.
2. Set Stop Losses and Alerts
- Traders should establish clear stop-loss levels to minimize risk in case of a breakdown.
3. Consider Accumulation Opportunities
- If Bitcoin holds above $88,000, it could present a buying opportunity for those confident in a bullish continuation.
FAQs
1. Why is $88,000 significant for Bitcoin?
The $88,000 level represents the Short-Term Holder (STH) cost basis, a critical indicator of price momentum and market confidence.
2. What happens if Bitcoin drops below $88,000?
A loss of this level could trigger selling pressure, as short-term holders exit positions, potentially leading to further downside.
3. What is the URPD metric?
The UTXO Realized Price Distribution (URPD) metric tracks Bitcoin’s trading volume at different price levels, highlighting key areas of support and resistance.
4. How does $88K influence market sentiment?
Maintaining this level reinforces confidence in the market’s bullish momentum, while losing it could shift sentiment toward bearish expectations.
5. What should traders do at this level?
Traders should monitor Bitcoin’s performance around $88,000, set stop-loss levels, and consider accumulation if the level holds.
Conclusion
The $88,000 level is more than just a price point; it’s a pivotal marker for Bitcoin’s momentum and market sentiment. Glassnode’s analysis underscores its significance as the Short-Term Holder cost basis, with the potential to dictate Bitcoin’s next move.
Whether Bitcoin sustains this critical level or breaches it will determine its trajectory in the coming weeks. For traders and investors, staying vigilant and adapting strategies to this key metric will be essential in navigating Bitcoin’s dynamic market.
To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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Mantra Partners with UAE Real Estate Giant Damac to Tokenize $1B in Assets

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