Nov 25, 2024: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — Trump's Planned Crypto Advisory Council

President-elect Donald Trump has pledged to establish a crypto-friendly administration, which includes forming a new advisory council for the cryptocurrency industry. Major companies like Ripple, Kraken and Circle are vying for positions on this council to influence U.S. digital asset policy.

The council is expected to be based within the White House, likely under the National Economic Council, and will coordinate policies related to cryptocurrencies, advise Congress and help create a national Bitcoin reserve. Industry leaders, including executives from Coinbase and Circle, have expressed interest in joining.

Trump’s transition team is also considering appointing a "crypto tsar" to lead the council. Former CFTC officials, such as Heath Tarbert and Brian Quintenz, are advising on crypto policy as the administration seeks to roll back Biden-era enforcement actions against crypto companies.

While excitement over a pro-crypto administration has contributed to Bitcoin's surge toward $100,000, some consumer groups have raised concerns about the industry shaping its own regulations. 

Weekly Crypto Highlight — Bitcoin Tests $100,000 as ETF Flows Intensify

U.S. Spot Bitcoin exchange-traded funds (ETFs) have achieved a significant milestone, accumulating over $30 billion in total net inflows since their inception in January 2024. This surge in investment reflects a growing interest in Bitcoin, as well as a favorable market environment.

The rise in net inflows and trading volume can be attributed to heightened bullish sentiment in the market, particularly following the re-election of former president Donald Trump. His return to the political forefront has sparked optimism among investors, contributing to increased confidence in cryptocurrency investments.

As a result of this influx of capital, the total net asset value of these Bitcoin ETFs has exceeded the $100 billion mark as of Wednesday, Nov 20, 2024. This achievement underscores the growing acceptance of cryptocurrencies in mainstream finance, and highlights the potential for continued growth in this sector. The strong performance of these funds signals a robust demand for Bitcoin, and could pave the way for further developments in cryptocurrency investment.

Advanced

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Weekly Institutional Insights: Bitcoin Tests $100K as ETF Flows Intensify

Sui Name Service (SuiNS) enables blockchain users to register human-readable web3 names, ensuring secure, seamless transactions and a user-friendly on-chain identity.

Some people have no trouble remembering new cell phone numbers, and there are even a select few among us who wouldn't find it hard to memorize a 16-digit bank card number. However, very few people would choose to tackle the job of reliably recalling an alphanumeric blockchain address. Network addresses on 

 (ETH) are 42 characters long, while on the 

 (SUI) blockchain they span 66. These complex and length addresses are virtually impossible for most users to remember, and are among the least user-friendly features of 

 networks. Not only are long blockchain addresses distinctly user-unfriendly, but they also lead to many instances of wrongly executed transactions due to incorrectly input characters. 

Sui Name Service (NS), a solution on the Sui blockchain, has been specifically designed to tackle this problem. The service allows users to create human-readable and easy-to-remember web3 names linked to their underlying blockchain addresses. Using SuiNS, you can transact within web3 using your preferred username and, optionally, an avatar, rather than a long, complex blockchain address.

 (NS), or simply SuiNS, is a decentralized naming service that allows you to create and use a human-readable, user-friendly web3 handle to interact with the blockchain environment, instead of using a typical long and complicated network address. 

At the underlying level, your SuiNS name is linked to your blockchain address, but all the interaction and operations on the chain happen via your registered name.

SuiNS was first conceptualized and launched in 2022, inspired by the popular 

 (ENS). In many ways, SuiNS and ENS are similar, the obvious difference being that each one applies to its own respective blockchain environment. In May 2023, SuiNS was introduced on the Sui blockchain's newly launched mainnet. The service was developed and is supported by Mysten Labs, the development studio behind the Sui blockchain project. Since the beginning of the Sui blockchain's conceptualization, SuiNS has been among the core projects of the entire Sui ecosystem. As of late November 2024, SuiNS has managed to achieve the remarkable milestone of having registered nearly 330,000 names.

Using SuiNS, you can register your preferred username (as long as it's not been taken) for one year by paying a registration fee, currently charged in SUI coins. The name can be renewed at expiration for up to five years. All interactions with the blockchain environment through your wallet use your preferred username, rather than your blockchain address.

SuiNS names can be between 3 and 63 characters. Users can check the availability of their preferred handle and register it using the 

, where a lookup textbox is prominently displayed. Shorter names cost more than longer handles. As of the time of this writing (Nov 21, 2024), a three-character-long name costs 500 SUI ($1,785) and a four-character name will cost 100 SUI ($357), while names with five or more characters are priced at 20 SUI ($71.40).

A SuiNS name can only be registered for one year, but it can be renewed for up to four years (excluding the initial registration year). There's a 30-day grace period after the expiration of your SuiNS name, during which you may still renew it. If you don't renew during the grace period, your registered name will be up for grabs by anyone on the market. Optionally, you can buy an NFT avatar linked to your SuiNS name.

 (DApp) ecosystem on the Sui blockchain. Developers can use off-chain remote procedure calls (RPCs) to integrate the Sui service into their application environments. They can also take advantage of the native, on-chain SuiNS SDK to interact with the service.

Thanks to SuiNS, you can enjoy short, comprehensible names for your own address, as well as the addresses of the parties with whom you transact (if they also sign up for the service). No more forgettable string combinations that are hard to read and virtually impossible to remember!

However, a SuiNS name isn't just a tool of convenience. It also represents your decentralized identity on-chain. The identity is fully owned by you, the user, rather than by a centralized entity.

SuiNS minimizes the likelihood of lost assets due to sending funds to the wrong address: short, easy-to-remember names are way less prone to incorrectly executed transactions than standard blockchain addresses.

Security is also among the benefits of SuiNS. The service runs on the Sui chain, which prides itself on developing and enforcing high-grade security standards. Among these are 

, a framework that maintains a list of malicious websites and on-chain assets, thus protecting the Sui ecosystem from 

 launched by these known nefarious entities.

The SuiNS service launched its native token, NS, on Nov 14, 2024. Initially, NS is envisioned to support 

 processes on the platform, and will also be used for purchasing and trading SuiNS names. Currently, names are traded using SUI, the blockchain's native cryptocurrency. It's likely that NS will replace SUI in this capacity in the near future. The project team has also hinted that there could be additional uses for the NS token beyond governance and payment for SuiNS names. More announcements on this issue are likely to follow.

During the initial phase of the token's existence, governance will be its most prominent function. Holders of NS will be able to vote on important issues concerning the protocol's rules and future direction. One NS equals one vote, with more NS tokens giving you a greater say in the overall decision-making process. You can also increase your voting power by locking your NS tokens for from one to 12 months. For every additional month locked, you obtain 10% voting power. To encourage voting, 5% of the NS token's supply has been allocated for governance rewards. NS is a 

 token, with a total and maximum supply set at 500 million. The token's supply distribution shares are per the chart below.

NS is available on Bybit's Spot market as a swap pair with USDT (

). You can also take advantage of Bybit's campaign dedicated to the token to grab a share of the 

. Three campaign events for eligible users run through Nov 27, 2024, 8AM UTC:

Thanks to Sui Name Service, interacting on-chain has become easier and more user-friendly. However, easy-to-remember names aren't the only benefit: advantages also include lower likelihood of lost funds, better security and a completely decentralized, user-owned identity on-chain. So far, around 330,000 names have been registered, and with the impressive suite of benefits, expect this number to grow as we move with SuiNS into 2025.

Intermediate

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Sui Name Service (NS): Your On-Chain Identity Made Simple

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.

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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.

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Crypto Market Maker: Boosting Trades With Strategic Liquidity

Bybit Learn

Investing

Crypto

A crypto pullback could indicate a good opportunity to accumulate wealth. But can you spot a pullback accurately? Find out now. 

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Cryptocurrency markets can be highly volatile, with prices rising and pulling back rapidly. Knowing what to do with your investments can be tricky during a market pullback. Having a clear understanding of the risk-on-risk-off market shift to manage your investment in response to global economic changes properly could alter the return on investment results. And having plans to deal with market downturns is ideal. 

This article will explore crypto market pullbacks and strategies for navigating them.

Why Are There Market Pullbacks in Crypto?

Some of the most common reasons pullbacks occur in crypto markets include the following:

 When the price of digital currencies rises significantly, some investors may choose to sell their holdings to lock in gains. This selling pressure can cause the price of the crypto to decline temporarily.

 Negative news or events, such as a hacking incident, regulatory crackdown, or controversy involving a particular coin, could lead to a brief drop in the price of that coin.

 A decline in trading volume or a move below a key support level can lead to a pullback.

 When market sentiment turns negative, and FUD (fear, uncertainty, doubt) dominates, investors are more likely to panic sell, which can drive prices down.

Are Crypto Pullbacks and Traditional Finance Pullbacks the Same?

Crypto and traditional finance pullbacks are similar in some ways, but there are also some key differences.

Both crypto and traditional finance pullbacks can be caused by profit-taking, negative news or events, technical factors, and market sentiment. In both cases, an asset price decline usually occurs when there is increased selling pressure.

However, crypto markets are highly volatile compared to traditional financial markets. Crypto prices can fluctuate quickly, while conventional finance markets tend to be more stable in the short term and experience more gradual changes in price. Analyzing the past performance of the asset class should give a better overview to strategize your trading strategy.

Another difference is the level of regulation and oversight in the crypto market compared to traditional finance markets. The crypto market is still relatively uncharted territory, and a higher risk and uncertainty are associated with investing in crypto assets.

Additionally, the mainstream acceptance of both markets is different. Traditional finance markets are more stable and predictable as they have been around for longer, with a more established track record, market structure, regulation, and investor base. While the crypto market is still relatively new and uncertain, mass adoption could stabilize it.

A cryptocurrency pullback typically lasts for a few trading sessions; anything longer could be considered a reversal.

To identify a pullback, you can look for a decline in the price of a cryptocurrency after a period of price increases. The drop should be more significant than a typical day-to-day price fluctuation, and the price should remain below the previous high for a considerable period. 

However, note that a pullback is different from a downturn, which is a sustained decline in the market over a longer time. A downturn is characterized by a prolonged period of 

 conditions, often lasting for months or even years.

The market decline is typically shorter during a pullback, and it's often considered a normal and healthy part of any bear and bull 

. A pullback usually indicates an opportunity to accumulate assets at a discounted price. On the other hand, the decline is more pronounced during a downturn as the assets have mostly lost significant value due to negative market sentiment.

The Difference Between a Reverse vs. Reversal vs. Pullback

The terms "reverse," "reversal," and "pullback" all refer to changes in the direction of a market or an asset's price, but they take on slightly different connotations.

A "reverse" refers to a change in the direction of a trend. For example, if a cryptocurrency has been experiencing an uptrend (i.e., its price has been steadily increasing), a reverse would occur when the price starts to decrease. In this case, the trend has changed from an uptrend to a downtrend.

A "reversal" refers to a trend change expected to be sustained for longer. Most reversals are often a more enduring change in the market and are often seen as a confirmation of a new trend.

A "pullback" refers to a temporary decline in the price of an asset after a period of increase. Considered a normal part of a market cycle, pullbacks are less severe than a reversal, and the price tends to recover rapidly after a pullback.

While these terms are similar, they represent different scenarios — "reverse," and "reversal" often indicate that the market's direction has changed for the long haul. At the same time, "pullback" usually implies that the market's direction has temporarily changed and will return to its previous trend.

What Are The Pullback Trading Strategies? 

A pullback trading strategy entails buying assets at a lower price during temporary market drops. Most long-term investors would take advantage of short-term uncertainty while hoping to benefit from the long-term uptrend.

A stop-loss pullback trading strategy is a method of buying an asset after it has experienced a significant price drop, with the expectation that the asset's price will rebound. The idea is to buy the asset at a lower price after a temporary setback and then sell it for profit once the price has recovered.

, which is an order to sell an asset if its price falls to a certain level. A stop-loss order limits potential losses if the asset's price drops further after being purchased.

An investor notices that Bitcoin is trading at $10,000. The market sentiment turns bearish, and the price drops to $9,000 within a week. The investor then decides to buy Bitcoin at $9,000 with a stop-loss order at $8,500 (if the price reaches $8,500, the investor will automatically sell), with a target price of $9,500. After a couple of weeks, the market sentiment improves, and amidst positive news about the record institutional adoption of Bitcoin, the price reaches $9,500. The investor sells his holdings for a $500 profit.

A take-profit pullback strategy is a method of trading where an investor or trader sets a target price at which they will sell an asset to lock in profits. Traders typically use this strategy in conjunction with the pullback strategy. 

Once the asset reaches the target price or "take-profit" level, the investor or trader will sell the asset to lock in the profits. The idea behind this approach is to take advantage of market fluctuations to buy low while having a pre-determined plan to sell the asset once a certain profit level has been reached.

Here's an example of how a take-profit pullback strategy might work in practice:

A trader identifies a digital asset that they believe is undervalued and has strong long-term growth potential. The coin is currently trading at $50 per unit, but the trader thinks it may ultimately reach $70. The trader believes the digital asset's price is temporarily depressed due to market uncertainty and sets a take-profit price at $60. The trader uses a pullback strategy to buy the digital asset at $50 per unit. After a while, the coin price reaches $60 per unit, the trader sells it to lock in a $10 per unit profit. 

How to Enter a Market During a Market Pullback

Entering a market during a pullback can be an excellent way to buy assets at a discounted price. Here are ways of taking advantage of the pullback using Bitcoin as an example:

 The first step is to identify that a pullback is happening. You can look for a decline in the price of Bitcoin after a period of price increases. You can use charts and technical analysis tools to help you identify the pullback.

 Once you've identified the pullback, you'll want to determine key 

 levels. Support levels are prices where buyers are expected to step in and prevent further price declines. In contrast, resistance levels are price levels where sellers are expected to take profit, preventing further price increases.

 Once you've identified key levels, you can place entry orders at or near the support levels and stop-loss orders at or near the resistance levels. This allows you to buy the asset if it reaches the support level and will limit your losses if it reaches the resistance level.

: After placing your entry and stop-loss orders, you will wait for the order to be filled. The price of bitcoin may not reach your desired entry point, so you must be patient and wait for the right opportunity.

 Once you've entered the market, you'll want to monitor your investments closely to ensure that they perform as expected. Keep an eye on relevant news and events, and use technical analysis tools to help you stay on top of the market.

During a crypto pullback, one strategy could be investing in 

, well-established digital assets with a strong track record and a large market capitalization. These cryptocurrencies are less risky than other digital assets and can be a good option for those looking for more stability. Examples of blue-chip cryptocurrencies include 

 (NFTs) during a pullback. NFTs are unique digital assets stored on a blockchain, representing digital art, collectibles, real estate, virtual land, and many more. NFTs have been gaining traction, and a pullback could be an opportunity to invest in high-quality NFT projects with a strong track record and an established community.

Pullback trading in cryptocurrency involves buying an asset after a period of price decline in anticipation of a rebound in the asset's value. While pullback trading can be profitable, it is risky because cryptocurrency prices can be highly volatile and subject to various factors. 

Additionally, predicting the timing of a pullback and the subsequent rebound can be challenging. It is imperative to have a well-thought-out strategy and a solid understanding of the market before attempting to engage in pullback trading in the crypto ecosystem. 

What To Invest In During A Crypto Pullback?

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