Saudi Aramco taps spot market as Hormuz disruptions reroute oil flows
Saudi Aramco has offered prompt crude via rare spot-market tenders as the Strait of Hormuz closures force rerouting of shipments through the Red Sea, disrupting contracted flows.
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Bitcoin's Resilience: Unstoppable Surge Amidst Hype and Recession
Bitcoin's recent bull-market surge has been characterized by a series of price gains and horizontal consolidations, with pullbacks of 20% or more remaining elusive. This may be due to the dominance of spot-market buyers and low leverage in the system. The spot market, where assets are traded for immediate delivery, has seen increased activity, while the share of derivatives trading has declined. The use of leverage in derivatives trading is lower compared to previous bull runs, reducing the likelihood of liquidations-induced volatility. Additionally, trading activity is more concentrated in standard futures on regulated exchanges like the Chicago Mercantile Exchange (CME), where extreme leverage is less common. Lastly, the use of coins as margin for trading has decreased, with cash or stablecoin-margined contracts becoming more prevalent.
Bitcoin Surges to $42K, Driven by Spot Volumes and Market Recovery
The recent surge in Bitcoin's price to a 20-month high of $41,130 has led to speculation about the role of Bitcoin futures liquidations. However, data from BTC derivatives suggests that the rally is primarily driven by spot market action rather than futures liquidations. The $100 million liquidation of short Bitcoin futures represents only 1% of the total outstanding contracts, while the substantial trading volume of $190 billion in the same period indicates strong spot market activity. The funding rate and futures basis rate also show no signs of excessive optimism or exhaustion among traders. The surge is supported by spot market accumulation and a decline in the available supply of coins on exchanges.
Bitcoin's Price Outlook: Bear Capitulation, $45,000 Target, and Key Levels to Watch
A trader predicts that Bitcoin will witness bear capitulation as the U.S. Securities and Exchange Commission (SEC) has a little over a month to decide on spot market Bitcoin exchange-traded fund (ETF) applications. The trader believes that BTC will experience more rallies in the coming weeks, causing even bearish Bitcoin traders to join in. Another analyst is also bullish on Bitcoin, predicting a rally to as high as $45,000. However, there may be resistance around $42,000. At the time of writing, Bitcoin is trading at $39,522.
Former SEC Chair Jay Clayton: Bitcoin ETF Approval Could Be Hard to Resist
Former SEC Chairman Jay Clayton believes that a spot Bitcoin exchange-traded fund (ETF) could be approved if it demonstrates similar efficacy to the futures market. Clayton, who was initially skeptical of Bitcoin trading, finds it remarkable that major players in traditional finance are interested in spot ETF applications. BlackRock, the world's largest asset manager, recently applied for a spot Bitcoin ETF, leading to increased institutional investment in the space. The SEC has been hesitant to approve a spot Bitcoin ETF due to concerns about price manipulation and the need for a surveillance-sharing agreement. However, if applicants can address these concerns, it would be difficult for regulators to resist approving a Bitcoin ETF.
Bitcoin Spot ETF: Opening Doors for New Investors Amid Rising Institutional Demand
The launch of the first Bitcoin leveraged futures ETF has raised hopes for the approval of a spot ETF, which could open the door for institutional investors to get involved with Bitcoin. BlackRock's application for a spot ETF has sparked a rally in Bitcoin's price, and other companies like Fidelity and Invesco have followed suit. While the SEC has previously rejected applications for Bitcoin spot ETFs due to concerns about fraud and market manipulation, the approval of a leveraged futures ETF suggests a spot ETF may be on the horizon. A spot ETF would provide a regulated and safer way for investors to gain exposure to Bitcoin, potentially bringing more stability to the market and attracting more investors.