The Derivatives Magazine #30

The Derivatives Magazine #30

Crypto market is not going to give up and actively demonstrates it. After the strongest collapse caused by the fall of one of the world's largest exchanges - FTX, for the second week in a row we can see growth. The week started with $776.3 billion. Then we saw active rallies through the middle of the week to $824.6 billion, followed by sideways movement through the end of the week. At the end of the period under review there was another wave of growth. The period ended on the peak of this wave, reaching $827.5 billion. The final growth amounted to 6.6%.

Some macroeconomic indicators give hope (but not much so far) for improvement in the situation in the industry. For example, the S&P500 stock index demonstrated growth last week, exceeding 4100 points for the first time since the beginning of autumn. Given the uncertain situation with the forthcoming interest rate hike cycles of the leading central banks, it is too early to talk about a dramatic turnaround in the global economy. However, some positive signals are never superfluous to increase confidence of crypto market participants. Especially now, when that confidence has literally been "crushed.

In the current market situation, the ratio between realized profits and realized losses can serve as an interesting indicator to study. According to Glassnode, this indicator reached its historical maximum during the week. As a result the losses fixed by the market were 14 times more than the fixed profit. According to analysts of the service, previous values of the same low historically coincided with the market reversal. However, one should always remember the following postulate: what happened in the past will not necessarily happen in the future.

Santiment has recorded a 4.1% decline in total supply of the top 4 stablecoins on exchanges over the last four months. Of course, the interesting fact is that even now, at the hypothetical "bottom" of the market, this indicator is higher than during the bull market of 2021. In other words, there is quite a lot of buying power in the market right now. The only question is at what point it will be realized.

Bybit cuts off staff
Cryptocurrency exchange Bybit will cut its staff as part of a business reorganization "amid a prolonged bear market." This was announced by co-founder and head of the company Ben Zhou. According to Zhou, the company intends to refocus its efforts amid the protracted crisis. He stressed that the reorganization will affect all divisions of the structure. Bybit joined a group of cryptocurrency industry players who decided to downsize amid a drop in digital asset prices. On November 30, the Kraken platform announced the layoff of about 1100 employees or about 30% of its staff.

Gemini unsuccessfully trying to recover funds
According to Financial Times, cryptocurrency lending service Genesis and its parent company Digital Currency Group (DCG) owe customers of the Gemini exchange more than $900 million. Gemini, founded by Tyler and Cameron Winklevoss, has been unsuccessfully trying to recover funds after cryptocurrency lender Genesis suffered significant losses due to the FTX crash. Genesis and DCG owe Gemini customers more than $900 million, with venture capital firm DCG, which owns Genesis Trading and Grayscale, accounting for the bulk of the $575 million debt. Experts note that the presence of large interstructural loans can cause additional complexity. For example, DCG itself owes its subsidiary company Genesis about $2 billion. DCG declined to comment, but Financial Times reporters learned that some of DCG's loans were used to finance the operations of its other subsidiary, Grayscale.

Alibaba cloud partners with Avalanche
Alibaba Cloud, also known as Aliyun, a division of Chinese e-commerce giant Alibaba, announced an integration with Avalanche blockchain to support the company's Node-as-a-Service initiatives. Avalanche's partnership with the Alibaba Cloud will develop tools that will allow users to run validation nodes on Avalanche's public blockchain platform in Asia. The integration will allow Avalanche developers to use Alibaba Cloud's plug-and-play infrastructure as a service to launch new validators. Developers expecting a high demand for resources during peak hours can also use the additional resources - compute, storage and distribution - offered by Alibaba Cloud.

This overview was prepared by the analytics department of the Biqutex, an innovative crypto derivatives exchange. Trade an extended list of instruments (Perpetuals Swaps, Futures, Options, Calendar Spreads etc.) with up to 125x leverage and deep liquidity!