In a Friday announcement, Bitfinex said it would be immediately closing the accounts for Ontario-based customers who have no balances on the platform. In addition, it planned to restrict access to those who do not have open positions in the exchange’s peer-to-peer financing market or open margin positions. Users who have balances or open positions on Bitfinex and are one of the roughly 15 million residents of Ontario — which includes Toronto and the nation’s capital city of Ottawa — “will no longer have access to any services” starting on March 1. The exchange advised customers to withdraw funds before the effective date.Though Bitfinex did not mention the Ontario Securities Commission, or OSC, the region’s financial watchdog has been responsible for cracking down on crypto exchanges operating in the area, including OKEx, Bybit, KuCoin and Polo Digital Assets. In December, the OSC issued a notice that Binance was not authorized “to offer trading in derivatives or securities to persons or companies located in the province” after the crypto exchange reportedly told its users it would be able to continue offering services in the region. Binance reportedly said there was a miscommunication on the issue.Related: Amid ongoing legal proceedings, Bitfinex announces Tether loan repaymentBitfinex has also been the target of U.S. regulators. In October, the Commodity Futures Trading Commission fined the crypto exchange and its sister company Tether $42.5 million, with Bitfinex allegedly facilitating “illegal, off-exchange retail commodity transactions in digital assets with U.S persons.” The Office of the New York Attorney General previously ordered the two firms to pay $18.5 million in damages and submit to periodically reporting on their reserves.Crypto exchange Bitfinex has announced users based in the Canadian province of Ontario will no longer have access to many of its services starting on March 1.Čítaj viac
Bitcoin (BTC) could see its last day of downside as buyers line up to cash in on Wednesday’s Federal Reserve meeting.On Dec. 14, bids began increasing on major exchange Bitfinex in a conspicuous sign that the market believes BTC/USD is destined to gain.Time to “sell the rumor, buy the news”?The Fed will deliver key information on the future of asset purchases — a form of quantitative easing (QE) — as well as inflation at the meeting, and bets are rising about the knock-on impact for both crypto and traditional markets.Data from Bitfinex’s order book suggests that Bitcoin traders are eyeing an opportunity to “buy the news.”Bitfinex laying down bidsRetail selling into the lows ahead of FOMC Meeting with funding negative across the boardFeels like we’re going to get a Buy The News event #Bitcoin $BTC pic.twitter.com/9Z69rJuL0T— Zen (@Zen_Trades1) December 14, 2021As Cointelegraph reported, the Fed tapering its asset purchases effectively limits the availability of “easy” money, and accelerating the process could pressure risk assets such as Bitcoin until a slackening of policy returns.For the short term, however, a buy-up would echo events from last month’s inflation data print, this producing a conspicuous but short lived boost to BTC.Bitfinex traders lay in wait in an area roughly between $44,500 and $46,000 Tuesday, with spot price currently at $46,800 after a day of losses.”Think FOMC has a good chance to be a ‘sell the rumor, buy the news’ event,” analyst William Clemente added. “Pair that with illiquid supply back at yearly highs and some large Bitfinex bids coming in. Just waiting for $53K to start bidding. Happy to miss some of the move and essentially pay for confirmation.”Bitcoin traders anything but docileElsewhere, evidence of increasingly bearish whales persists on exchange order books. Related: ‘Monster bull move’ means whales could secure the next Bitcoin price surgeAs noted by Material Scientist, creator of on-chain analytics resource Material Indicators, large-volume traders have been continually selling since October.They’ve not bought a single dip since October and have been straight-up TWAP-selling all this time,” Material Scientist commented on Twitter.Some exceptions have hit the headlines, and whales — the largest volume cohort of exchange activity — have exhibited buying interest. Yet according to the data, $60,000 resistance is still increasing with time.”We have yet to see any of the BTC dips over the last month bought with real conviction,” Material Indicators added in a separate post.Čítaj viac
Bitcoin (BTC) has been struggling to sustain the $47,500 support since the Dec. 4 crash, a movement that wiped out over $840 million in leveraged long futures contracts. The downside move came after the emergence of the Omicron variant of the Coronavirus and recent data showing U.S. inflation hitting a 40-year high. Bitcoin/USD price at FTX. Source: TradingViewWhile newcomers might have been scared by the 26% price correction over the past month, whales and avid investors like MicroStrategy added to their positions. On Dec. 9, MicroStrategy announced that they had acquired 1,434 Bitcoin, which increased their stake to 122,478 BTC.According to some analysts, the rationale behind Bitcoin’s weakness was the contagion fear that Evergrande, a leading Chinese property developer, defaulted on its US dollar debt on Dec. 9. The $1.1 Bitcoin billion options expiry on Dec. 10 also could have played an important factor because bears pocketed a $300 million profit.Margin traders are still extremely bullishMargin trading allows investors to leverage their positions by borrowing stablecoins and using the proceeds to buy more cryptocurrency. When those savvy traders borrow Bitcoin, they use the coins as collateral for shorts, meaning they are betting on a price decrease. That is why some analysts monitor the total lending amounts of Bitcoin and stablecoins to gain insight into whether investors are leaning bullish or bearish. Interestingly, Bitfinex margin traders slightly reduced their longs ahead of the Dec. 4 price crash. Bitfinex BTC margin long/total percentage. Source: CoinglassNotice that the indicator held a decent 90% favoring longs, meaning stablecoin borrowing was only 10% of the Bitfinex total. Furthermore, the margin longs recovered by 94% less than 24 hours after the price crash. This suggests that even if those investors were caught by surprise, most held their positions throughout the movement.To confirm whether this movement was specific to the instrument, one should also analyze options markets. The 25% delta skew compares similar call (buy) and put (sell) options. The indicator will turn positive when “fear” is prevalent as the protective put options premium is higher than similar risk call options.The opposite holds when market makers are bullish, causing the 25% delta skew to shift to the negative area. Readings between negative 8% and positive 8% are usually deemed neutral.Deribit Bitcoin options 25% delta skew. Source: laevitas.chThe 25% delta skew ranged near 6% ahead of the Dec. 4 Bitcoin crash, which is considered neutral. Over the next 3 days the options market makers and whales displayed moderate fear as the indicator peaked at 10%, but currently it stands at 3%.The Bitfinex margin long metric and the options main risk metric show few signs of stress in derivatives markets. Considering that these markets are more often used by pro traders, one can begin to believe in the narrative that Bitcoin will claim a new all-time high in early 2022.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.Čítaj viac
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