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

Crypto

Altcoins

Polymath (POLY) is an Ethereum blockchain–based security token issuance platform that allows entities seeking to raise capital to issue standardized SEC-compliant security tokens.

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Capital markets are highly regulated environments with significant responsibilities and requirements placed upon the primary parties — businesses looking for investors to raise funds. Unfortunately, standard blockchain technology is not equipped to accomplish this strategy. Polymath is one of the leading projects designed to address these limitations and bring the benefits of raising capital to the blockchain world.

The Need for Regulatory-compliant Security Tokens 

The highly regulated nature of capital markets has long impeded large-scale fundraising on a blockchain. By default, blockchains are designed to have open access, and are subject to virtually no regulatory mechanism, while privacy and regulatory control are two pillars of 

 (ICOs), many projects tried to attract investors by issuing security tokens meant to provide some assurance of ownership. They 

 the utility tokens used by these crypto platforms. Unfortunately, many of the tokens were “security” in name only, without any tangible standards or regulations. The Securities and Exchange Commission (SEC) was rightly unimpressed with the offers, and didn’t consider these tokens proper securities.

Polymath was then launched in 2018 and registered with the SEC to bring standardization and regulatory compliance into the process of tokenized capital raising. 

blockchain–based security token issuance platform. It allows entities seeking to raise capital to issue standardized, Ethereum-based security tokens that are compliant with SEC regulations.

, a compliant standard for security tokens.The platform uses a related security standard, 

, to issue its own security tokens. The tokens specify a set of rules and requirements that issuers and investors must satisfy for a capital-raising transaction to occur.

Polymath's technology brings efficiency to the process of tokenizing securities on Ethereum. However, the team behind the project didn’t stop there. They’ve also developed a native blockchain, 

 (POLYX), which is specifically designed for tokenized securities and capital-raising on the blockchain. Unlike Ethereum, Polymesh has been created with capital markets in mind. As of now, the Ethereum-based Polymath and Polymesh operate in parallel. Eventually, Polymath’s activities will likely shift toward Polymesh.

 is the company’s comprehensive solution for end-to-end tokenized capital-raising. It helps companies establish and manage the life cycle of their capital-raising activities — creating offers, tokenizing the offers, attracting investors and more.

 platform to browse through offers and narrow down their selections using a variety of filters — e.g., by country, capital requirements, identification requirements and so on.

 is a utility for managing security tokens. You can use it to handle all the token’s operations, such as reserving ticker symbols, configuring token rules and distributing the token.

While the new Polymath Capital Platform is a one-stop solution for the overall tokenized capital-raising process, Polymath Token Studio manages all the details and specifications of the actual security token.

Polymath requires issuers to specify all the parties involved in their projects. These include brokers, legal representatives, custody agents and more. Upon satisfying these requirements, a company seeking capital can mint and promote its security token with the ST-20 standard.

At the moment, Polymath has six security tokens listed on its Ethereum platform.

The security tokens listed on Polymath’s Ethereum account

To choose a suitable project, potential investors browse through offers on Polymath, just as traditional market investors evaluate stocks, bonds or commodities to invest in. Polymath offers a good deal of information about each one of its projects, thanks to the platform’s standards.

This is in stark contrast to many other crypto projects, even those with “security” tokens based on the conventional ERC-20 standard. Many such projects, now and in the past, have lacked the critical information required to evaluate their attractiveness and safety from an investment perspective. Projects with obscure two-page white papers and anonymous founders using online forum handles have sought significant capital by issuing these tokens.

With Polymath, significant project-related details are rigorously collated to help ensure the safety of investors’ funds. For example, Polymath uses a procedure that 

 token issuers. Thus, a Reddit username, no matter how inventive or funny, will not work for a project founder’s registration.

Similar rigorous identification and information standards apply to investors. You have to prove your identity and supply key facts demonstrating your investor status.

When an investor selects a project, Polymath uses an escrow system based on smart contracts to hold the deposited funds, which are then released when all the requirements are met by both parties — the issuer and the investor.

To be fully compliant with SEC regulations, Polymath applies waiting periods on the release of security tokens to investors. For those with accredited investor status, the waiting period is 90 days. The SEC 

 as individuals meeting one of the following criteria:

If you don’t meet the accredited investor criteria, the waiting period to access your security tokens will be one year.

POLY is Polymath’s utility cryptocurrency. It’s an 

 token on Ethereum, and it powers the platform’s Ethereum-based operations. The new Polymesh blockchain has its own native crypto called POLYX. Polymath has announced that POLY tokens may be converted to POLYX at a 1:1 rate and transferred to Polymesh using the POLY to POLYX Bridge utility.

POLY is used on Polymath to pay fees for all on-platform transactions — e.g., minting of security tokens, or using services such as identity verification. The token is involved in transaction payments on Polymath, just as Ether coin is used on Ethereum to pay for all blockchain-wide transactions.

While the Polymesh blockchain’s new POLYX coin has governance and staking functionalities, the POLY token doesn’t have either of these. Thus, POLY is a classic utility token employed largely to facilitate on-platform transactions.

POLY has a total supply of 1 billion tokens and a circulating supply of 898.5 million. There’s no supply cap specified for the token. Its current price (as of Oct. 19, 2022) is around $0.26, giving it a market cap of around $220 million.

The trading of POLY began in early 2018 when the platform deployed its first smart contracts on Ethereum. Despite quickly reaching a high of $1.59 on February 20, 2018, it eventually declined to about $0.15 by the end of the year, as its launch coincided with the 2018 

In 2019, POLY dipped below the $0.10 mark and stayed at sub-10-cent levels throughout the rest of the year and 2020. Beginning in February 2021, the token’s fortunes changed dramatically, with wild ups and downs throughout the year. POLY’s volatility was nothing unusual, given the overall crypto market’s spectacular 

As the market experienced its final major crash of 2021 in November, POLY’s price entered a multi-month downtrend, bottoming out in June 2022 at $0.17. Since then, POLY has had a mild recovery.

In general, POLY’s performance since early 2021 has been nothing out of the ordinary, given the overall market conditions. Many price prediction experts anticipate POLY to grow in value due to its potential contribution to the blockchain industry. 

 to hit a maximum of $1 by 2025 and cross the $6 mark by 2030. 

 toward the token, though more conservative, predicting POLY’s price at around $0.65 in 2025 and only exceeding $1 by 2030.

We expect POLY to perform moderately well, perhaps at the level of the overall market. The project has moderate potential for these reasons:

Polymath is a major project designed to bring venture capital to blockchains. It may prove to be instrumental in getting investors to view crypto security tokens as a legitimate form of securities. For now, Polymath may provide companies and investors with a capital market platform that’s complementary to traditional financial market platforms. In the future, however, companies and investors might come to view blockchain and security tokens as the preferred platform to raise capital and invest.

Polymath Crypto: Tokenizing Securities With Blockchain

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards