First Mover Americas: BNB Is Being Heavily Shorted
The latest price moves in crypto markets in context for July 17, 2023.
This article originally appeared in , CoinDesk’s daily newsletter putting the latest moves in crypto markets in context..
Traders in the perpetual futures market tied to the BNB token are leaning bearish as the embattled cryptocurrency faces a challenging environment on multiple fronts.Data tracked by Coinglass show open interest and volume-weighted funding rates in perpetual futures have slipped to -0.18%, the lowest since late April. Those numbers mean shorts, or positions that profit from a price drop, are dominant, and are willing to pay longs to keep their bearish bets open. Funding rates are charged every eight hours. "BNB is being heavily shorted," Huff Haus, co-founder of Pear Protocol, said, referring to the deeply negative funding rates.
The native token of decentralized exchange (DEX) aggregator 1inch (1INCH) by more than 58% early Monday before giving back most of the gains. Trading volume hit $597 million, its highest level since October, 2021. At press time 1INCH was higher by about 10% over the past 24 hours. Coupled with a spike in trading volume, $3.37 million in leveraged 1inch short positions have been liquidated over the past 24-hours, according to CoinGlass. While there was no immediate catalyst evident, 1inch's rally appears to be a continuation of the uptrend begun following’s XRP supposed legal victory against the U.S. Securities and Exchange Commission (SEC) last week. XRP nearly doubled that day, leading a rally in the altcoin sector that included sizable gains for tokens like Solana’s (), Cardano’s () and Polygon’s ().
The Bitcoin hashrate continues to hit all-time highs as competition between miners escalates ahead of the next halving event, JPMorgan (JPM) in a research report Thursday. Expected to take place in the second quarter of 2024, the halving will reduce issuance rewards to 3.125 BTC from 6.25 BTC, “implying a reduction in miners’ revenues, effectively increasing Bitcoin’s production cost at the same time,” the report said. “While Bitcoin halving is seen as having a positive effect on the bitcoin price given the production cost acted historically as a floor, it poses a challenge for bitcoin miners,” analysts led by Nikolaos Panigirtzoglou wrote.
- Omkar Godbole
Edited by Stephen Alpher.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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VIPCross-Asset Positioning Amid AI Earnings Scrutiny and the US Election
1. Markets diverged during the week. Between the October 23 and October 30 closes, BTC fell 4.78%, the Nasdaq 100 declined 1.98%, and gold and silver dropped 2.72% and 8.59%, respectively. The DAX, KOSPI, Nikkei 225 and Hang Seng advanced. We focus on differences in growth prospects, valuation sensitivity and risk exposures rather than applying a single directional view across assets. 2. Market reactions to Alphabet's and Intel's earnings brought returns on AI investment into focus. Attention is shifting from the scale of capital expenditure to revenue realization, margins and free cash flow. Lower interest rates can ease discount-rate pressure, but a sustained valuation recovery still requires support from both operating performance and financing conditions. 3. The November 3 US midterm elections and November 6 employment report are key events in the coming week. We monitor how post-election fiscal and legislative agendas may affect interest rates, the dollar and industry operating conditions. Our execution priorities are to manage leverage and concentration, retain margin and exit-liquidity buffers, and avoid treating a single political outcome as an automatic trading signal. 4. Following Binance's disclosure of a security incident, industry attention to endpoint protection, access segregation and coordinated incident response has increased. Key assets to monitor: BTC, the Nasdaq 100, crude oil and gold, alongside upcoming earnings from AAPL, AMD, PLTR, ARM, ANET and QCOM.
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