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Record 63.1K BTC Options Expire on Friday, Has This Triggered Price Panic?

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The market is getting heated this week with 61.3K BTC options set to expire on Friday. This factor suggests something big is brewing with BTC price.

There has been an explosion of BTC options. After a short dip towards the end of January, Bitcoin options have been reaching record levels in February. For most of February, open interest has been reaching $1.5B daily. On Friday 19th, for the first time, Deribit exchanges for the first time confirmed over $1B open interest.

By far, on Monday 22nd, it marked the most saturated day in the Bitcoin futures market by trading $135B. Binance exchange led with this reaching over $44B, Huobi and OKEx generated $36B and $22B respectively. This numbers indicated considerable interest in derivatives and a big sign that a significant price move is on the horizon.

Skew data of Bitcoin options expiring this Friday show that 4,400 have a strike price of $48,000. The second-highest strike price is $40,000 with 3,900 options open. The total Bitcoin options open interest $3B plus notional according to Skew.

BTC Options Investor Advantages

Open interest represents Bitcoin futures not closed by either the buyer or seller. Bitcoin futures have been a preferred way for some investors to get exposure to Bitcoin. Investors can speculate the price movement of the digital asset without having to own the digital asset itself. Some of the benefits of this approach include, investors are not concerned about having a Bitcoin wallet or concerned over its security. Additionally, there is less concern about regulation as the exchanges offering them are regulated by the Commodity Futures Trading Commission (CFTC).

In the past, Bitcoin open options have affected Bitcoin’s actual price. With 63.1K Bitcoin options set to expire on Friday and most investors speculating a drop to $48K, Bitcoin is already bleeding. At the time of press, Bitcoin is trading around $49K as bulls and bears tassel over the $50K pivotal position. Since reaching the current high of $57K, the market paused with the upcoming seemingly triggering a reaction. Depending on what price Bitcoin close the week, the open interest is set to see some investors liquidated.

Though options do not directly affect prices, their influence is undeniable. The week will experience a high level of volatility especially now that the price has dropped to the $50K region. The range now seems set between $48K and $57K with trading volume hugely impacting how fast prices move from a bear to bull trend and vice versa. Analysts have been quick to advise holders not to panic and to sell during the dips as whales will be quick to take their stack.

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Kiguru is a fine writer with a preference for innovation, finance, and the convergence of the two. A firm adherent to the groundbreaking capability of cryptographic forms of money and the blockchain. When not in his office, he is tuned in to Nas, Eminem, and The Beatles.





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JPMorgan Acquires Nutmeg Robo-Advisor, Furthering UK Retail Banking

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Before the deal, JPMorgan and Nutmeg had partnered late last year to offer clients an assortment of globally diversified exchange-traded funds (ETFs).

JPMorgan Chase & Co (NYSE: JPM) said Thursday it has closed a deal to purchase Nutmeg, an online investment management service, for an unnamed price. US biggest bank hopes the agreement, which awaits regulatory approval, will complement its launch of a standalone digital bank brand in the UK during the year.

Using the latest technology from Nutmeg will help boost JPMorgan’s retail and institutional push since the company aims at establishing as many branches as it can outside the US.

With over £3.5 billion (4.9 billion) worth of assets under management, the decade-old Nutmeg is one of the UK leading and award-winning robo-advisors. The company offers various investment accounts including Individual Savings Accounts (ISAs), general investment, and pensions accounts.

Additionally, its competitors include Wealthsimple, Moneybox, and Moneyfarm. Before the take-over, Nutmeg had raised over $150 million in investments from Goldman Sachs and the British venture capital firm – Balderton Capital.

JPMorgan CEO Jamie Dimon stated last year that the banking giant would be “much more aggressive” in adding assets by conducting more acquisitions. The bank may also be stepping up to competition from adversary Morgan Stanley (NYSE: MS) which, in recent years, has spent $20 billion in merger agreements with E-trade and Eaton Vance.

Dimon also mentioned leveling up against blue-chip tech firm Alphabet Inc (NASDAQ: GOOGL) and other fintech firms such as PayPal Holdings Inc (NASDAQ: PYPL).

JPMorgan Stock Market and Nutmeg Acquisition

Before the deal, JPMorgan and Nutmeg had partnered late last year to offer clients an assortment of globally diversified exchange-traded funds (ETFs). This is not the first time the bank has partnered with a company then acquired it later. In October 2020, JPMorgan partnered with 55ip, a tax-smart fintech start-up, then bought it a couple of months down the line.

Differing regulatory guidelines in Europe and the UK made it necessary for JPMorgan to purchase the robo-advisor, rather than use investment technology available in the US. However, its US-based investment service You Invest is currently doing well, with assets valued at about $50 billion, as Dimon states.

JPMorgan’s tech initiative marks one among many happening in Britain’s retail banking sector. Banks such as Revolut, Starling, and Monzo manage digital-only checking accounts which have attracted a host of clients. Going by data from Innovate Finance, FinTechs in the UK probably make up the world’s largest markets, having pulled in $4.1 billion investment from venture capitalists as of last year.

JPMorgan Securities served as financial advisor in the JPMorgan-Nutmeg transaction, while Freshfields Bruckhaus Deringer acted as legal counsel. Arma Partners was Nutmeg’s financial advisor and Taylor Wessing was legal counsel.

As of June 17, 2021, at 7:59 p.m. EDT, JPMorgan stock closed at $151.76, down 2.89%. In the after-hours session, it was trading at $151.48, down 0.18% in 24-hours.

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
Mythology is my mystery!
“You cannot enslave a mind that knows itself. That values itself. That understands itself.”



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MSFT Stock Still Attractive following Appointment of Microsoft CEO Satya Nadella as Chairman

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The tech giant Microsoft announced yesterday that its CEO Satya Nadella had been named chairman of the board.

Microsoft Corporation (NASDAQ: MSFT) stock is trading today at around $258.06 (+0.26%) following the announcement that Chief executive officer Satya Nadella has been appointed as its new chairman, in place of John Thompson.

Microsoft Corporation stock has always been deemed a finished product and unlikely to produce anything great in the long run because they are already big. Many investors are skeptical about the long-term outlook of Microsoft stock regardless of its advantages as a huge tech company. Microsoft Corporation has however recorded impressive numbers this year as continues to grow despite having a $2 trillion market cap.

Microsoft Corporation’s total revenue saw a $6.7 billion rise year over year in its Q3 fiscal of 2021, with every sector of the tech giant, contributing to this growth. Microsoft’s commercial cloud revenue, Azure, and Dynamics 365 grew 33% year over year to $17.7 billion. The tech company’s cloud computing business, Azure, saw its revenue rise by 50%.

The company paid out $16.1 billion in dividends to shareholders over the trailing 12 months ending March 31, with a dividend yield of 0.9%. Although Microsoft’s dividend yield may look small, its current quarterly dividend of $0.56 is up from $0.36 just five years ago and is currently only paying out 30% of its free cash flow in dividends, to make room for annual dividend increases.

Microsoft, shuffling its leadership also couldn’t have come at a better time. The tech giant announced yesterday that its CEO, Satya Nadella has been named chairman of the board. Nadella who according to a statement from Microsoft was “unanimously elected” to replace John Thompson, has served as the chief executive officer of the tech company since 2014 and has played an integral role in pushing the company to what it is now a trillion-dollar corporation.

Nadella saw the billion-dollar acquisition of LinkedIn, ZeniMax, and Nuance Communications. Thompson, who took over as chairman from the company’s co-founder Bill Gates in 2014, will serve as a lead independent director, according to Microsoft

The appointment of Nadella as Microsoft Chairman comes after the company was subjected to intense criticisms of an unprofessional workplace and sexual harassment allegations after news broke on an affair between its co-founder Bill Gates and an employee back in 2000. Bill Gates’s representatives acknowledged the relationship which reportedly happened while he was chairman of the board.

Microsoft’s board has revealed that it launched an investigation into the matter two years ago but declined to comment on whether its board has decided to let Bill Gates go.

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Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.



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World Bank Declines El Salvador’s Request for Support in Bitcoin Implementation

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The World Bank declined to support El Salvador in its bid to adopt Bitcoin as a mainstream currency. Environmental impacts, carbon emissions amid mining, and transparency issues were among the reasons for the refusal.

The World Bank has yet again declared its stance on Bitcoin, and according to the latest development, the global financier isn’t ready to adopt Bitcoin or any other crypto as a mainstream currency. The bank’s representative was quoted saying that even though the government had approached them on Bitcoin adoption, the bank can’t in any way help out given the transparency and environmental issues surrounding Bitcoin. The spokesperson however added that the bank was ready to work with El Salvador to try and sought out the country’s monetary issues, particularly currency transparency and monetary regulations.

Before the request to the World Bank’s team, Alejandro Delays (El Salvador’s minister of finance) stated that El Salvador had requested technical assistance from the World Bank a.k.a Banco Mundial in terms of regulation and implementation of Bitcoin, to make it a legal tender in the South American country.

Effects of the Refusal of World Bank to Support El Salvador in Its Bitcoin Move

As you can already tell, pundits and notable Bitcoiners weren’t surprised by the World Bank’s decision to decline such a noble move. However, they were neither pleased. One Bitcoiner, Anthony Pompliano, stated in a tweet that the World Bank is yet to figure a way to profit from Bitcoin. The developer of Ignite Blockchain-based game, Samson Sow, who’s also Blockstream’s CSO was clearly vexed by the news when he suggested, via a tweet, that the global financial outfit is obsolete and should be disbanded.

While El Salvador’s Bitcoin laws have been well received by Bitcoiners, they’ve also attracted criticism in equal measure. On Wednesday, one economist, Steve Hank, was quoted saying that if El Salvador adopts Bitcoin and make it a legal tender, the end result will be a collapsed economy.

Other global financial bodies, particularly the International Monetary Fund (IMF), aren’t pleased with the idea of embracing Bitcoin. An article published on Cointelegraph indicated such a move will stall the ongoing negotiations between the IMF and El Salvador regarding a $1B loan meant to boost the country. The International Monetary Fund representative added that Bitcoin’s adoption comes with consequences and has a negative impact on many spheres of a country’s macroeconomics.

Help from Other Quarters

Following the setback, some companies have rushed in to provide a soft landing. One such company is Athena Bitcoin that intends to provide ATMs across the South American country. In a tweet, Athena Bitcoin enquired from the president if 1,000 automated machines would suffice. However, the president jokingly answered back “how about 1500?”

In other news, Ronaldo Castro, the country’s Labor and Welfare minister denied the ongoing claims that his ministry was in talks about compensating employees with Bitcoin. He stated that the discussion surrounding wages was too premature.

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Patrick is an accounting & economics graduate, a Cryptocurrency enthusiast, and a Blockchain technology fanatic. When not crafting informative pieces on any of the above subjects, he will be researching on how the Blockchain technology can transform the world, particularly the financial space.



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