Cryptocurrency

Open interest is an essential metric for understanding the futures market. It represents the total number of outstanding futures contracts that have not yet been settled. When open interest is high, it indicates that many traders have open positions on the market. For Ethereum, open interest has been ramping up continuously. But what does this mean? And more importantly, why should we be concerned?Source: The recent charts for depict ever-increasing open interest. The continual upward trend in open interest indicates a growing number of investors betting on the future price movements of ETH, either up or down. While high open interest can be seen as a sign of heightened activity and interest in Ethereum, it also suggests that there is a lot of speculative trading happening. Speculative trading, as history has shown us, can lead to intense volatility.When examining the attached open interest chart, one notices a stark divergence. While price has seen fluctuations and is showing signs of consolidation, the open interest continues to surge. This divergence can be a precursor to significant price swings. When there is a discrepancy between price movement and open interest, it often suggests that a considerable price shift is on the horizon.This “scary” surge in open interest, paired with volatile price actions, could lead to what traders term a “long squeeze” or a “short squeeze.” If the majority of these open contracts are betting on Ethereum’s price to go up (long positions) and the price starts to drop, it could trigger a cascade of sell-offs.This article was originally published on U.Today More

The frequency of cryptocurrency scams is often directly proportional to the hype and profits around the ecosystem at a given time. It appears that the ongoing crypto bear market has helped eradicate at least some of the bad actors, including scams and businesses, while it has largely retained serious investors who believe in due diligence. Continue Reading on Cointelegraph More

The unexpected revival of Bitcoin’s price caught many off guard, especially considering the cryptocurrency’s consistent decline throughout the previous week. However, one individual, , the former head of crypto direction at the renowned ARK Invest, had foreseen this situation. In a tweet posted the evening before the surge, Burniske hinted at the possibility of a BTC breakout, a prediction that proved to be remarkably accurate.Following today’s significant surge in Bitcoin’s price, Burniske took to social media once again, stating, “It’ll get real if we break & hold $28,000.” The analyst’s insight suggests that the ongoing crypto market celebration hinges on Bitcoin’s ability to break and sustain a value above the $28,000 mark. It is worth noting that this crucial level was briefly touched on futures on , with the spot market price reaching a peak of only $27,980 earlier today. This further indicates the significance of the price level highlighted by Burniske.The analyst also emphasizes the importance of the consolidation. According to trading textbooks, the duration in which the price remains above the crucial level will serve as a strong signal for market trends. The longer the consolidation above this level, the more a resurgence in the price is likely.This article was originally published on U.Today More

This strategic move aligns with Binance’s deflationary model strategy to enhance the scarcity and potential value of its native token. Throughout its history, the company has incinerated between 808,888 and 2.22 million BNB per event, reducing the total supply by 0.41% to 1.74%. The Auto-Burn process used for these operations is designed to remove half of the total supply (100 million BNB) from circulation and operates independently of the Binance exchange. Despite this significant burn, the market price of BNB remained largely stable, reflecting broader crypto market trends with a slight 3% gain and trading at $213. However, it is still down by 13% year-to-date. The price of BNB is influenced not only by supply but also by wider crypto market trends, regulatory developments, and macroeconomic indicators.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

In early October, several publications mistakenly reported that Honda started accepting cryptocurrency as payment. But Honda doesn’t allow the purchase of its cars in exchange for crypto, a spokesperson for the firm told Cointelegraph, stating:Continue Reading on Cointelegraph More

“I wouldn’t say the NFT market has regressed,“ Decentraland Foundation executive director Yemel Jardi told Cointelegraph. “Rather, it’s maturing.”Continue Reading on Coin Telegraph More

In the newly-unveiled “Regulating digital asset platforms” consultation paper, released on Oct. 16, the Australian Treasury said that the new regulatory framework aims to address consumer harms while still supporting innovation in the digital asset sector.Continue Reading on Coin Telegraph More

Cowen presented compelling data: on May 12, 2023, Bitcoin (BTC) and ETH were priced at $26,800 and $1,804, respectively. Fast forward to October 11, 2023, and BTC’s price steadfastly held at $26,800, whereas ETH had dwindled to $1,564. This downtrend was not just a momentary lapse but was reflected starkly in the ETH/BTC ratio, which progressively slipped from 0.067 to 0.058 in the same period.A counterpoint was raised by a crypto enthusiast who emphasized ETH’s 77% surge from its low, outpacing BTC’s 73% climb. However, Cowen swiftly noted the selective nature of these statistics. He stressed that a holistic view paints a different picture — from their all-time highs, had retracted by 61%, while ETH saw a sharper decline of 68%.Current market analysis further cements Cowen’s stance. As of now, Bitcoin is trading at approximately $26,727.99, maintaining a semblance of stability. In contrast, Ethereum struggles at around $1,551.34, a concerning figure for investors who recall its past highs.This discourse is not just about numbers; it is a lesson in market perception versus reality. Ethereum, despite its groundbreaking contributions to the DeFi and NFT sectors, has not been impervious to market strains. Its trajectory, when juxtaposed with Bitcoin’s, highlights the nuances of market movements and the fallacy of general assumptions.Momentary spikes and troughs can be deceptive, and an asset’s true health is often revealed in longer-term trends and broader market contexts. This revelation does not undermine Ethereum’s potential but serves as a grounding notice to traders to delve deeper, looking beyond the surface-level chatter to make informed investment decisions.This article was originally published on U.Today More