Bitcoin traders holding options are bidding bitcoins at $15.5K
Although Crypto trading from Bybit has launched a $100 million fund that will help the crypto industry solve the temporary liquidity crisis. The crypto market seems to be volatile at the moment following the fall of the second largest crypto exchange platform FTX in recent times.
Cryptocurrency exchange platform Binance has attempted to bring down the current doldrums into the crypto industry by revealing the proof of reserves to the public domain as the price of the cryptocurrency Bitcoin has swung to its new low of $15,500.
source: cnbc.com
Cryptocurrency Bitcoin has been trading around $16,500 on November 23 after recovering from the near $15,500 low.
This is caused in the crypto market due to the rumors in the market regarding the possible bankruptcy of the crypto landing platform Genesis, which has ended its withdrawal from the platform and says that there will be a temporary suspension of withdrawals and the company will soon in the future.
Although the Genesis platform has gone through a tough time raising capital for its cryptocurrency platform, its parent company Digital Currency Group (DCG) owns a large stake in the Grayscale company, and this Grayscale holds approximately 633,360 bitcoin as assets to the company. The crypto company greyscale manages these Bitcoins using the Grayscale Bitcoin trust.
The proof of funds published by the Crypto company Binance using the Merkle Tree system will help the cryptic community regain confidence in the Crypto market. Along with the proof of work, Binance also announced that the users of Binance can also verify the holdings of users and the platform using a new mechanism Binance platform.
While publishing the proof of reserves statement, Binance stated that it is important for all the centralized institutions to work on transparency and the assurance processes to regain the confidence of all the investors in the crypto market.
What is the current state of the crypto options market?
According to cryptoanalysts, futures contracts in the fixed period are traded at a certain premium to the regular spot prices in any trading market. This is because there is a seller’s side claim and this work to withhold the settlement for a longer period. Although this is considered a common situation in the money markets, this is not the situation at the moment in the crypto market.
In the current situation, it is expected that traders should analyze the options market along with they should understand whether Bitcoin will stick to the support price of $15,500. Along with that, it is also a remarkable thing that a 25% delta bias is considered as a telling sign for all the arbitrage tables that consider overcharging or external protection against the crypto market.
