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Caspian launches cryptocurrency-derivatives after CBOE delists BTC futures




Caspian launches cryptocurrency-derivatives after CBOE delists BTC futures
Source: Pixabay

Caspian, the virtual currency trading, portfolio and risk management firm, announced a partnership with Deribit, the crypto-derivatives exchange to launch cryptocurrency futures and options. The partnership marks the first time an institutional platform is providing both futures and options trading in the digital assets class.

Announced on March 20 via a press release, the partnership will see Deribit included in the Caspian ecosystem, which includes “over 30 major crypto exchanges and liquidity providers”.

Deribit, the Amsterdam-based exchange, currently facilitates trading in Bitcoin [BTC] and Ethereum [ETH] options and future contracts along with a Deribit perpetual swap product for the top cryptocurrency. The press release also added that the futures-crypto-exchange also offers “100x leverage and competitive trading fees”.

Caspian will build an application to connect the crypto-derivatives exchange so that it can process “high volumes” and ease the client’s access to the order books. The statement said,

“The Caspian platform connects to Deribit through an advanced API that supports high volumes with ultra-low latency and provides clients with access to the exchange’s full options order book.”

Robert Dykes, the CEO of Caspian, aims to create a crypto-derivatives market that mimics the traditional markets in infrastructure. He stated:

“Our goal at Caspian is to provide crypto traders and investors the same standard of tools and service that exist in the traditional market.”

John Jansen, the CEO of Deribit, stated that institutional investors will see this partnership as a “gateway” into the cryptocurrency markets and that it will push the wave of crypto-adoption within the derivatives realm.

Caspian is the product of a partnership between Kenetic Capital, a Hong Kong-based cryptocurrency firm, and the American trading services company, Tora. In September 2018, the Caspian project saw a massive $16 million investment from Galaxy Investment, Octagon Strategy, Global Advisors and Bletchley Park and Kenetic.

Coincidently, the Chicago Board Options Exchange [CBOE] delisted their Bitcoin futures contract for March 2019. This delisting will provide a great impetus to its cross-town rival, the Chicago Mercantile Exchange [CME], to capture the Bitcoin derivatives market.

Back in late-2017, the CBOE and CME introduced Bitcoin futures, which lead to a mammoth bullish wave to ensconce the market. Bitcoin rose over the $19,000 mark and the collective market was valued at over $800 billion.

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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise




JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:

“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.

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