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Blockchain space is looking at some areas of strength, despite the perceived downturn in the market. Bitcoin (BTC) and Ethereum (ETH) permanent futures funding rates have returned to positive on major exchanges, showing bullish sentiment among derivative traders. In addition, Bitcoin has begun trading below its cost base. This marks the bottom area of the previous market. In June, cryptocurrency stocks offered an average return of -42.7% month-on-month, with total decentralized finance (DeFi) locked down by 33%.
There are ongoing battles between bullish and bearish emotions in various areas of the market. To help crypto traders run through the battlefield, Cointelegraph Research recently published its monthly Investor Insights Report. In the report, the research team analyzes the top market-moving events last month and the most important data across different sectors of the industry. Researchers provide expert analysis and insights that can benefit serious blockchain market participants.
Until June, there was a strong bearish sentiment in the market. One indicator of bearish and bullish sentiment is the market volatility skew. The larger the skew range, the higher the volatility, and the narrower the skew range, the lower the volatility. This means more confidence in the market. On June 18, Bitcoin options’ 25 delta skew peaked at 36%, a record high. Since then, some optimism has returned and skew has dropped to 17%. This shows a strong belief that the crypto market will recover in the coming months.
Bitcoin and Ether’s long call premiums show that traders are optimistic about the end of the year. However, Solvency issues and transmission risks still exist in the minds of markets and investors and regulators.
In the sideways market, if Bitcoin stays in range, traders can use strangles to generate returns. Strangles involves selling puts and calls at different strike prices. The idea of strangles, as the name implies, is to put puts (sell options) and calls (buy options) above and below the current spot price. For example, if Bitcoin is $ 20,000, first sell the put for $ 15,000 and then the call for $ 30,000. If it expires after one month, the premium will be the profit minus the transaction fee.
Download and purchase the report at Cointelegraph Research Terminal.
Currently, the option skew is steep, with an implied volatility difference of up to 10% between the $ 17,000 and $ 24,000 strike prices of the Deliver and Chicago Mercantile Exchange. This shows the proper setting of risk reversal, including a short put of $ 17,000 and a long call of $ 24,000.
Bitcoin’s net unrealized loss reached its lowest level in three years, emphasizing that its current market value is about 17% lower than its total cost-based market value. Historically, when losses exceed 25%, a global bottom has been formed. The falling average moving average and the Relative Strength Index of the oversold zone indicate that the bear is in control.
However, for the first time since March 2020, Bitcoin has traded below its mining cost base. This is the level that has historically marked the bottom of global capital in Bitcoin prices. The net unrealized profit / loss indicator is evidence that the bulls can overtake the bears.
The Investor Insights report covers a variety of other topics such as security tokens, DeFi, blockchain games, cryptocurrency mining, blockchain-related equities, regulations, and venture capital investment. Subject-matter experts keep all the latest news and trends up-to-date to survive weeds and provide essential insights into the blockchain industry.
Each section of the report covers important factors that influence the topic. Subject-matter experts cover the most important events that have a significant impact, and the information is for serious participants in the crypto market to get overviews, highlights, and forecasts that may be on the horizon. Presented in a digestible format that can be used for. The newsletter is available on a subscription and features a complete chart and detailed analysis.
Cointelegraph’s research division is made up of some of the best talents in the blockchain industry. The team’s researchers are committed to summarizing academic rigor, filtering through hands-on and painstaking experience, and providing the most accurate and insightful content available on the market.
Demelza Hays, Ph.D., is the principal investigator of Cointelegraph. Hayes has formed a team of experts in target areas from across the fields of finance, economics and technology to bring to the market the best source of information for industry reports and insightful analysis. The team utilizes APIs from a variety of sources to provide accurate and useful information and analysis.
The Cointelegraph Research team is in a position to combine decades of traditional financial, business, engineering, technology, and research experience to better leverage the talents combined in the Investor Insights Report.
Disclaimer: The opinions contained in the article are for general information purposes only and are for general purposes only. No Intended for a specific offer advice Or any personal or specific security recommendations or investment product.
