The cryptocurrency market is witnessing an influx of speculative trading, particularly with meme coins like DOGE, PEPE and BONK experiencing extraordinary gains. 

November 2024 has marked a significant milestone for Bitcoin, with its price soaring to $94,105. This unprecedented growth has been driven by global events and heightened social media discussions, with predictions of six-figure valuations. Historically, peaks in social media chatter often precede market corrections, signaling traders to exercise caution. Currently, while whale accumulation remains strong — with wallets holding over 10 Bitcoin adding 53,006 more BTC in just one month — retail traders remain surprisingly cautious. This wary sentiment contrasts sharply with the bullish behavior usually seen during price surges, suggesting a potential correction.

The cryptocurrency market is witnessing an influx of speculative trading, particularly with meme coins like DOGE, PEPE and BONK experiencing extraordinary gains. Despite their volatility, these tokens reflect a broader appetite for high-risk investments. Notably, whale investors holding 1M–100M DOGE are accumulating, while smaller holders are selling, creating conditions for potential breakouts. However, if new capital stops flowing, these speculative assets could face significant downturns. Additionally, while discussions around Bitcoin reaching $100K are increasing, they haven’t reached the levels seen earlier this year, indicating that fear of missing out (FOMO) may not yet be fully realized.

Institutional Interest and Ethereum's Resurgence

Demand for Bitcoin ETFs has surged, with daily trading volumes hitting a record $8.21 billion, signaling increased institutional interest. This activity often coincides with market peaks, but could also indicate new investments flowing into the crypto space. Meanwhile, Ethereum has also gained momentum, breaking above $3,100 for the first time in over 14 weeks. Additionally, whale accumulation is on the rise, suggesting that as Bitcoin leads the market, profits may soon be redirected into Ethereum. In contrast, Solana's price movements remain highly sentiment-driven, with funding rates indicating potential entry points for investors. Overall, altcoins are experiencing growth, particularly following the U.S. elections, which have reignited optimism in the crypto market.

Advanced

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Bitcoin's Resurgence: Analyzing Market Dynamics and Speculative Trends in November 2024

Crypto market makers play a crucial role in providing liquidity by consistently placing buy and sell orders. Learn more about how they work here.

The cryptocurrency market is notorious for its high volatility and sometimes low liquidity, making it a challenging environment for traders and investors. Executing trades can be difficult, often resulting in significant price 

Market making is a strategic approach that provides the necessary liquidity to stabilize markets, ensuring smoother trades and reducing volatility. By creating buy and sell orders around the current market price, market makers help maintain a healthy trading ecosystem. This article examines the fundamentals of market making, its benefits for traders and exchanges and the way it enhances the overall efficiency of the cryptocurrency market.

A crypto market maker is an entity or individual who primarily provides liquidity in cryptocurrency markets by continuously placing buy and sell orders for digital assets. This activity ensures efficient trading and helps maintain stable prices.

Crypto market makers play a key role in keeping markets liquid by continuously placing buy and sell orders on exchanges. Here's a closer look at how they operate.

Key Characteristics of a Crypto Market Maker

Crypto market makers provide liquidity and stabilize prices in the cryptocurrency market. The following are the key traits that enable them to operate effectively.

Market makers continually place buy and sell orders, ensuring the availability of transactions for traders. This constant availability reduces wait times for trades and minimizes the price impact of large orders, making the market more efficient and accessible for everyone.

One of the fundamental roles of market makers is that of managing the bid-ask spread. By consistently quoting competitive prices, they narrow this spread, thereby enhancing trading efficiency and reducing costs for other market participants. This spread is also their primary source of profit.

Market makers leverage advanced algorithms and HFT strategies to analyze market conditions and optimize their order placements. This technology allows them to react swiftly to price changes and maintain a balanced inventory of assets, which helps to manage risk and maximize profitability.

Due to the inherent volatility of cryptocurrency markets, effective risk management is vital for market makers. They employ various techniques, such as hedging and real-time market analysis, to minimize exposure to sudden price swings. This ensures their operations remain stable even in the face of market fluctuations.

By providing continuous liquidity and facilitating smooth trading operations, market makers enhance overall market efficiency. Their presence attracts more traders, which increases transaction volumes, boosts exchange activity and contributes to a healthier trading environment.

Given the quickly evolving nature of the cryptocurrency landscape, market makers must be adaptable, continually refining their strategies in response to new technologies, regulatory changes and shifts in market dynamics. This ensures they remain competitive and relevant.

Crypto market makers play a critical role in the cryptocurrency ecosystem by providing liquidity and stabilizing prices. Despite the integral role they play, however, their operations come with both advantages and disadvantages. 

Additional Importance of a Crypto Market Maker

Crypto market makers play a vital role in maintaining the efficiency and stability of the cryptocurrency market. Their presence on crypto exchanges ensures trading environments operate smoothly. 

Newer and smaller cryptocurrencies often struggle with liquidity. Market makers provide a market for these assets, promoting their growth and creating a more diverse and dynamic crypto ecosystem.

Through continual quoting of prices, market makers aid in fair price discovery, ensuring that cryptocurrency prices reflect actual market demand rather than extreme fluctuations. This promotes a more trustworthy and transparent trading environment that allows traders to make data-backed decisions. 

Crypto market makers are essential players in the cryptocurrency ecosystem, providing liquidity, stabilizing prices and ensuring smooth trade execution. Their use of advanced algorithms and real-time order placements encourages a more efficient, accessible and fair market. However, risks such as market manipulation, potential capital loss and lack of regulation can be problematic. Overall, the role of market makers in supporting emerging assets and maintaining market stability makes them indispensable for a healthy and growing crypto environment.

Intermediate

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Crypto Market Maker: Boosting Trades With Strategic Liquidity

SEC Chair Gary Gensler announced he will resign on January 20, 2025, coinciding with President-elect Donald Trump's inauguration.

The S&P 500 rose 0.53% as investors shifted toward cyclical stocks expected to benefit from a strengthening economy, while technology shares lagged. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 4.79%, with Bitcoin and Ether rising by  4.19% and 8.75%, respectively in the past 24 hours.

Today's top performer is XRP, which surged 24.3% following the partnership between Ripple and MCSocialVenture to boost financial resilience and access in emerging markets.

Ripple (XRP), launched in August 2012, is a blockchain technology company focused on improving international payments with its cryptocurrency, XRP. 

, focused on investing in emerging market entrepreneurs. The initiative will pilot financial resilience and humanitarian solutions built on the XRPL, aiming to advance equitable access to finance.

Check Out the Latest Prices, Charts, and Data of 

 he will resign on January 20, 2025, coinciding with President-elect Donald Trump's inauguration. Gensler, whose term runs until 2026, faced pressure from the crypto lobby due to the SEC’s strict regulatory actions against the industry, including high-profile cases against Coinbase and Binance. Gensler’s departure is seen as a victory for crypto advocates, who hope the next SEC chair will be more crypto-friendly. Trump has hinted at firing Gensler on his first day in office and is expected to appoint a chair with expertise in crypto, such as Mark Uyeda, Hester Peirce, or Chris Giancarlo.

Yesterday, BTC Spot ETF data revealed a net inflow of $396.7 million, driven by $404.5 million from non-GBTC sources, partially offset by a $7.8 million outflow from GBTC..

 for those who participated. To claim, visit 

 using code B0FKOP. Additionally, Morph Zoo Season 2 has launched on mainnet, allowing users to earn points by bridging ETH or executing transactions on Morph. The Bitget Wallet offers a 1.2x multiplier on points to maximize rewards.

Beginner

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SEC Chair Gary Gensler to Resign on Inauguration Day, Marking a Win for Crypto Lobby

Traders seem to expect BTC’s momentum could slow down a bit after the price hit over $97,000.

Positive sentiment has continued to fuel the cryptocurrency market as the expectation of further institutional adoption of 

 keeps growing. Options trading of BlackRock’s Spot Bitcoin ETF IBIT 

 with a bang, attracting almost $2 billion on the first day of trading. The hope of more spot ETF derivatives to change the market structure with additional institutional money onboarding crypto is high.

, we explored the possibility of the market being overleveraged, which could be painful if the current leverage unwinds. Data from CryptoQuant shows that the estimated leverage of the current BTC markets has reached another YTD high.

Derivatives data on Bybit shows that traders seem to expect that BTC’s momentum could slow down a bit after the price hit over $97,000, and are focusing more on downside protection.

Figure 1: Bitcoin estimated leverage ratio at 0.23. Source: CryptoQuant

BTC Options Open Interest Returns to Previous High While Perps Are Catching Up

Derivatives traders have been actively participating in BTC markets as 

 on Bybit has surged to over $3 billion, on par with the previous high on Nov 14, 2024. Although the options OI has increased, it still hasn’t surged above the previous high. At the time, BTC’s price had already jumped to over $97,000. If the OI doesn’t follow suit and break above the previous high in the coming days, this could be a sign that the market could become a bit exhausted — something for all market participants to be aware of.

Figure 2: Daily open interest for BTC options on Bybit. Source: Bybit

 have also seen increased open interest in recent days. Perpetuals have been among the most favorable products for day traders and short-term speculators. Rising open interest could indicate that more traders are looking for short-term profit, which could bring additional volatility to the market. 

Figure 3: Daily open interest for BTCUSDT Perpetuals on Bybit. Source: Bybit

Dec 27, 2024 remains the most popular expiration date for BTC Options on Bybit, with most of the open interest there. Within that expiration, $120,000 calls had the most OI, and $100,000 calls accumulated the second-largest OI. 

Figure 4: Open interest by strike for BTC Options with a Dec 27, 2024 expiration. Source: Bybit

Meanwhile, the market’s optimism that BTC will hit $100,000 by the end of the year seems to support the current price momentum. Shorter-dated options could show that traders are also looking for downside protection. The Bybit 

 page shows that BTC Options with a Nov 29, 2024 expiration have a strong 24-hour inflow to $90,000 puts. This could indicate that some traders are also anticipating some degree of price correction by the end of the month. 

Figure 5: 24-hour volume by strike for BTC Options with a Nov 29, 2024 expiration on Bybit. Source: Bybit

 for BTC Options on Bybit also indicates a possible downside protection in play among options traders. A smirk skew, or left skew, is a skew curve that’s steeper on one side (the left side) than the other. Traditionally, a smirk skew curve could mean that traders have been protecting their portfolios against a possible declining market. At the time of this writing (Nov 21, 2024), BTC Options contracts on Bybit with Nov 29, 2024 and Dec 27, 2024 expirations have both shown a smirk skew. However, this doesn’t necessarily mean traders are bearish on the price, and could just be part of the trading strategy. For example, traders could set up collars by buying out-of-the-money (OTM) puts and selling OTM calls simultaneously, so that they can profit in case BTC’s price drops, gain upside exposure and potentially offset the cost of buying the puts. 

Figure 6: Implied volatility of BTC Options with Nov 29, 2024 and Dec 27, 2024 expirations. Source: Bybit

The current BTC leverage trading may be complex, but tells a revealing narrative about market sentiment. The divergence between high leverage and increased hedging activities also reminds us that market dynamics are rarely straightforward, and adopting a 

 seems increasingly important in this diverse market.

: Investing in cryptocurrencies and their derivatives involves substantial risk of loss, and isn’t suitable for every investor. This article provides facts for educational purposes only, and does not represent any financial advice. Prior to making any investment decisions, please ensure you fully understand the risks involved and seek independent advice if necessary. Our customer support team is available to assist you with any inquiries.

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Learn From Smart Money: BTC’s Leverage Remains High as Traders Hedge Against Downside Risks

Bybit Learn

Guide

Explainers

Bybit’s ETH 2.0 Liquid Staking allows users to stake as little as 0.01 ETH and to earn daily rewards.

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 in September 2022, many crypto enthusiasts welcomed the change due to the numerous benefits a PoS system brings to the blockchain, such as greater scalability and higher energy efficiency. 

The shift to PoS also meant that rewards are to be given to 

 instead of miners, simplifying the block validation process and allowing for greater decentralization. However, the barrier to entry for becoming a staker remains high, as one needs to stake at least 32 ETH (equivalent to $99,401 as of Apr 27, 2024) to become a validator and earn passive income while helping to secure the network.

To address this challenge, liquid staking services were developed that support staking a marginal amount of ETH to earn rewards while being able to use the liquid staking derivatives (

s) for other trading opportunities. While many decentralized finance (

, offer liquid staking services, Bybit’s ETH 2.0 Liquid Staking further simplifies staking by helping you with the LSD minting process. 

EETH 2.0 Liquid Staking is a staking solution that allows its users to stake as little as 0.01 ETH to earn 

 When your ETH is staked, a liquid staking derivatives token, 

, is automatically minted at a 1:1 ratio. Once your ETH is converted into stETH, you’ll start earning daily yields, based on the amount of stETH held in your Bybit account. 

Although the yield from liquid staking may not be as high as that compared to directly staking ETH, you can profit in other ways, thanks to the stETH or mETH you’ve received from staking ETH. Since stETH or mETH are tokenized versions of ETH, their uses are similar to those of ETH. This means you can use stETH and mETH for trading with Bybit as well as in DeFi protocols, even though your ETH is locked for staking. You can also redeem stETH and mETH for ETH anytime at a 1:1 ratio.

From May 3 to May 23, 2024, you can maximize your mETH yields with not one, but 

! The first event offers you a chance to win a 

share of the $5,000 MNT prize pool when you stake a minimum of 0.1 ETH. The second event is exclusive to new users; if you stake 0.1 ETH with your first staking product being mETH, you can earn extra from a prize pool of $2,000 MNT.

With ETH 2.0 Liquid Staking, you can choose to stake from a minimum of 0.01 ETH to a maximum of 5,000 ETH in order to earn daily stETH or mETH rewards. While the accompanying APR can go as high as 6%, it fluctuates on a daily basis.

Once you stake your ETH, the system automatically mints stETH or mETH at a 1:1 ratio depending on your choice. This means you don’t have to perform any 

 activities or pay gas fees, as Bybit helps you with the process via Lido or 

. The minting process takes 15 to 30 minutes to complete. You can redeem your ETH at no fee, with the process taking around five to seven days, although redemption may be delayed should Lido or Mantle make any changes to your estimated withdrawal date. 

Meanwhile, you’ll also be able to use your 

 for trading on Bybit’s Spot market. If you have a Unified Trading Account (

), you can also trade using stETH as collateral. Since stETH and mETH are Lido DAO and Mantle LSD tokens, respectively, you can also choose to withdraw them from Bybit to use for 

However, if you withdraw stETH or mETH on any given day, you won’t receive that day’s yield distribution. Please 

 that transferring your stETH or mETH holdings to your 

How to Get Started With ETH 2.0 Liquid Staking 

To participate in Bybit’s ETH 2.0 Liquid Staking, you’ll first need to complete the 

 process with a minimum of Identity Verification Lv.1. The staking process is the same for both stETH and mETH and requires just two steps, as follows.

: Once you’ve completed KYC, proceed to navigate to the

: Enter the amount you wish to stake. Tick the checkbox reading, “I understand that ETH will be converted to stETH at 1:1 ratio.” Click on 

: If you’re placing an order for the first time, read the information in the confirmation pop-up box before clicking on 

: Enter the stETH amount that you want to redeem for ETH. Read the redemption information on the right side before ticking the checkbox that reads, “I acknowledge and understand that stETH will be converted to ETH at a 1:1 ratio.” 

: Read the information in the confirmation box pop-up before clicking on 

Once your redemption request is submitted, you’ll receive the ETH in your Funding Account in five to seven days. Please

 that your order cannot be canceled once submitted. 

You can check the status of your ETH 2.0 Liquidity Staking orders in two ways: 

You can also view your airdropped rewards from holding stETH in two ways:

ETH 2.0 Liquid Staking is a valuable tool to help you earn passive income from your ETH holdings while you wait for 

 to get the green light from the U.S. Securities and Exchange Commission (SEC). 

On top of the low barrier to entry (since you can stake as little as 0.01 ETH), you can also earn rewards in multiple ways, thanks to the issuance of stETH tokens. Hence, you’ll be able to maximize your returns even as your ETH remains locked. 

As Ethereum continues to evolve, ETH 2.0 Liquid Staking presents an opportunity for you to contribute to the network's security and decentralization while earning rewards in the process. Whether you're a seasoned investor or new to crypto, ETH 2.0 Liquid Staking offers you a convenient way to earn yields while helping to secure the Ethereum ecosystem, thus paving the way for a more inclusive and decentralized financial future.

ETH 2.0 Liquid Staking: Low-Risk ETH Staking for High Yields

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards