Do Bitcoin derivatives offer more profit opportunities? How do they relate to the US banking crisis?

In the last few weeks, the Crypto market mostly on the side emotional. Many Bitcoin investors are wondering if there will be major price corrections. Many professionals are expecting it in the derivatives markets right now no burglary. This is a positive sign for the market. So it is worth buying derivatives as options to generate returns instead of investing directly in Bitcoin.

Crypto presales currently offer more returns than Bitcoin, Ethereum and Co.

Over the past three weeks, prices on the crypto market have moved within a 10% path. It’s clearly not going up or down hill right now. Many investors are therefore focusing mainly on crypto presales at the moment. High profits can be obtained between the start of the project in the pre-sale and the listing on the stock exchange. Notable examples of this are Love Hate Inu or Ecoterra.

New cryptocurrencies are often more interesting in terms of price trends than established “legends” such as Bitcoin or Ethereum. At this point, investors don’t want to bet on whether major currencies will rise or fall. Therefore, the price of the major cryptocurrencies is mostly moving sideways at the moment. In the last few weeks, the capitalization of Bitcoin and Ethereum has decreased by about 1%.

The US District Court in the Western District of Texas appointed Mirror Trading International Proprietary Limited (MTI), CEO Johannes Steynberg he was fined $3.4 billion. The American USA Commodity Futures Trading Commission (CFTC) thus exposing the biggest Bitcoin fraud case to date. ,Such news will certainly not help the price of Bitcoin up.

Crypto exchanges are currently struggling with US authorities, but Coinbase is seeing success

In March, Coinbase received Wells’ notice announcing his lawsuit by the authorities. When a company like Coinbase receives the Wells Notice from the SEC, it has an opportunity to answer and respond to the allegations. This is currently the case with Coinbase.

Today at 1pm PT! Come on @brian_armstrong, @iampaulgrewal, @faryarshirzad another @chrislehan for a chat about the SEC’s recent decision to enforce rules that don’t exist. If the SEC wants to throw the rulebook at crypto, they should have a rulebook.https://t.co/7kgshcrmBy

— Coinbase 🛡️ (@coinbase) March 23, 2023

with almost 70 million users and hundreds of billions of dollars in trading volume Coinbase is of course very interested in ensuring that the legal security of all exchange services is beyond doubt. In a blog post, the stock exchange specifically addresses the allegations and its efforts to clarify regulations and requirements obtain so that they can be fulfilled.

According to Coinbase, there are currently no guidelines that the company can follow. Lawsuits against the crypto exchange Kraken, the stablecoin issuer Paxos and against Terraform Labs show how the authorities, above all the SEC, are seriously tightening the crackdown on crypto exchanges and companies.

Coinbase Earns First Success Against SEC in Court – Is the Market Changing Now?

Coinbase recently he was able to win against the allegations. The IS United States Court of Appeals for the Third Circuit having instructed the SEC to respond in writing within 10 days and clear instructions and rules publish that crypto companies should follow. This can create legal certainty and help the prices of Bitcoin and Co. rise in the long term.

Paul Grewal, General Counsel of Coinbase, announced that the court issued a court order ordering the SEC to properly fulfill its duties. In the opinion of the court and also in the opinion of Coinbase, this is not the case at the moment.

The Third Circuit has issued a text-only order ordering the SEC to file a response to our mandamus petition within 10 days (and gave us 7 days to respond). Here is the text of the order:

TEXT ONLY ORDER (Clerical) By direction of the Court, the Respondent is ordered…

— paulgrewal.eth (@iampaulgrewal) May 3, 2023

Once the SEC has filed its response with the court, it may Coinbase will respond within 7 days. The court examines both responses and thus directly intervenes in the case. Coinbase has filed a lawsuit forcing the SEC to write and publish its current actions and legal opinions.

Coinbase has one for that published petitionwhich asks specific questions about how cryptocurrencies and others digital assets to be regulated in the future.

The US banking crisis is not over – What does this mean for the crypto market and Bitcoin?

At the same time, the banking crisis continues to play an important role. PacWest Bancorp recently announced a capital increase to check or take over at another bank. This bank is one of the crisis candidates whose insolvency could be the next. Yes with Western Alliance Bancorp, Capital Bank and Town Street but other regional banks that are currently failing and may have financial problems.

Some of the banks were active in the crypto market, but they partially withdrew from the market, mainly due to the unsatisfactory course of Bitcoin and other crypto currencies.

Crypto gains momentum as US Regional Bank stocks fall after hours:

Pakistan, $PACW: ⬇️60%
Western Union, $WHALE: ⬇️30%
city ​​bank, $MCB: ⬇️20%
national valley $VLY: ⬇️15%
town street, $HMST: ⬇️11%
Sion bank, $ ZION: ⬇️10%
main body, $KEY: ⬇️8%

It seems time to #HODL

— Acquire.Fi (@Acquire_Fi) May 4, 2023

Many insiders are wondering whether the Fed or other agencies will continue to inject liquidity into the market on the scale needed for banks to survive, or at least to be taken over by other banks.

Will Clemente, founder of analyst firm Reflexivity Research, tweeted that the US banking system doesn’t look resilient right now given the bank failures of the past few months.

Fed Chairman Jerome Powell says that “the banking system is sound, resilient.”

*two hours later* : PacWest, Western Alliance, and Metropolitan bank down +100% combined$PACW $WHALE $MCB pic.twitter.com/YBPk0LtYVh

— Mohegan ₿TC 🟠 (@MoheganBTC) May 3, 2023

Of course, this news creates uncertainty, including for investors who want to buy cryptocurrencies. However, once the Treasury and the Fed make it clear that they will continue to provide liquidity to the market and the banks, prices should rise sharply again.

What is the current status of derivatives for Bitcoin and Ethereum?

Currently, the demand and trend of long options and short options are mostly the same, but there are some most police, which is mainly dependent on rising prices. Of course, it is interesting to know whether there are more call or put options at the moment, i.e. whether the majority is more likely to bet on the rise or fall of prices for Bitcoin and Ethereum.

When the contracts expire, that plays an important role for the market. Because at this point in time, the holders of the derivatives can decide whether the right to exercise the option (call) or to sell the option (put). If a majority decides to exercise the rights, it could lead to high pressure on buying, but also on selling. The last option’s expiry date was 28 April, which was mostly positive.

Although the Bitcoin price recovered in early May, the ratio of put options to call options did not increase significantly, so prices can be expected to rise in the future. When there is finally clarity about the weakening banking market in the US, prices should rise again soon. However, not many professionals are currently betting on falling prices, which is good news for the crypto market and for betting cryptocurrencies.