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

Intro to Santiment.png

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

market maker.png

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

4.png

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.

NOV24_R53_Learn From Smart Money_ BTC’s Leverage Remains High as Traders Hedge Against Downside Risks.png

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

Bybit Learn

Investing

Zero excuses to start building wealth! The more you trade, the more you save. Magnify your profits with Bybit Zero Fees with a consistent trading habit today. 

2401-T16454_Skinny_Banner_for_Blog_and_Learn_Row_53_728x90.png

Skinny_Banner-1600x400.webp

Exorbitant fees heighten the entry barrier to crypto trading, limiting your capacity and ultimately reducing your profit margin. Imagine you could have saved $10 on each trading transaction and grown these savings using the compounding strategy. How much would you have had by now? (Not to mention if you’re trading actively.) That’s exactly why we want to help you unlock this unlimited potential and build a consistent trading habit to grow your wealth sustainably.

Instead of waiting for the “perfect time” or the “perfect market conditions” to take action, we ask — Why wait? “Time in the market beats timing the market.” — Ken Fisher

How Much Wealth You Would Have Accumulated From Zero Fees?

High trading fees can eat into a trader's profits and losses. Assuming you make several trades daily, these fees can add up quickly, reducing your overall profit margins. And did you know that zero trading fees can help you save a substantial amount of money and, at the same time, give you the freedom to accelerate your wealth?

 listed above are implied to traders with non-VIP status on Bybit.

Let's say you pay a 0.1% trading fee per trade on the Spot market for $20,000 worth of BTC over 100 trades. This means you'll be paying $20 in trading fees over the course of these trades. With zero trading fees, however, you would have entirely saved the incurred $20 fees. Yet the trading fee is just one of several costs associated with crypto trading. 

Trading Fee = Filled Order Quantity × Trading Fee Rate

Take the BTC/USDT trading pair as an example. If the current price of BTC is $40,000, traders can buy or sell 0.5 BTC for 20,000 USDT.

Trader A buys 0.5 BTC with a Market Order, so Trader A pays a taker’s fee of 0.0005 BTC. Therefore, Trader A will receive 0.4995 BTC.

Trader B buys 20,000 USDT with a Limit Order, and 0.1% of the maker’s fee is incurred. Therefore, Trader B will receive 19,980 USDT.

Compared with other exchanges, Bybit’s trading fees are among the most competitive, with trading fees as low as 0.01%, which is well below the industry average.

"My life has been a product of compound interest." — Warren Buffett

The “compounding effect” is the principle of reaping huge rewards from a series of small, smart choices. In crypto trading, this strategy can significantly impact the overall profitability of a trading strategy.

Let’s say you’ve decided to invest the money you’ve saved on the zero trading fees, based on the last 100 transactions totaling 2,000 USDT in 

, and generated a net return of 50% APR from your first investment.

Using the compounding formula in the statement, you can calculate the amount you'll get by the end of the week. Referencing the values below:

Daily yield = Principal + [the amount of the coin you've staked × (APR for the staked coin/365)] 

2,000 USDT + (2000 USDT × 50%/365) = 2,002.74 USDT

Assuming you reinvest the gains and continue to generate a 50% APR, your investment would grow exponentially. By day two, you would have:

2,002.74 USDT + (2,002.74 USDT × 50%/365) = 2,005.48 USDT

2,005.48 USDT + (2,005.48 USDT × 50%/365) = 2,008.28 USDT

… and so on, with your account balance continuing to grow over time.

By the end of the week (day 7), you would have: 

2,016.55 USDT + 2,016.55 USDT × 50%/365 = 2,019.32 USDT

This means that by the end of the week, your investment would have generated a gain of 2,019.32 USDT. Over time, the compounding effect will lead to exponential growth in your account balance. 

: The above scenario is just an example. Bybit Earn users need to compound their earnings manually. 

3 Ways to Build a Consistent Trading Habit

Start early and invest regularly — the more you invest, the more you save

Time is essential to growing our assets. Starting early and investing regularly helps to develop a consistent habit, lower opportunity costs and diversify your portfolio, reducing loss risks due to market volatility. 

For example, dollar-cost averaging (DCA) effectively accumulates wealth with a more sustainable and systematic approach as you regularly invest a fixed amount of money, regardless of market condition, to average out opportunity costs. DCA allows you to buy more cryptocurrency when prices are low, and less crypto when prices are high.

Stay alert — seize all trading offers and opportunities 

Staying informed about the latest news, trends and developments in the crypto market is integral to keeping on top of market changes and taking advantage of trading opportunities. In fact, setting up alerts and subscribing to a platform’s newsletter is a great way to stay ahead of the game. 

For example, Bybit offers great deals and promotions. You only need to sign up to be looped in on these exciting news items. 

Looking to exchange or convert one crypto for another instantly? Now you can do it at zero fees and slippage with 

 to enjoy trading fee or UTA interest rebates

If you're looking for a community-driven approach to buying and selling crypto, our 

 covers you! With zero fees you'll enjoy greater savings as a buyer or seller. 

Aug 14 and Aug 29, 2024, 20 new USDC Spot pairs will be listed on Bybit, which can be traded via Spot Grid Bots. To celebrate the USDC Spot pair listings, you can now trade all USDC Spot pairs with zero fees till further notice.

You can enjoy various benefits such as reduced fees as a VIP trader with Bybit. From 

Aug 15, 2024, 12PM (noon) UTC, a new VIP level has been introduced, Pro 6, for Spot, Derivatives (Perpetuals and Futures), and Options Trading, offering lower Taker Fees. Additionally, Derivatives Taker Fees have been reduced for Pro 3, 4 and 5.

 is an excellent way to save money on trading fees. Refer friends to Bybit and receive up to 30% in commissions whenever your referee completes a trade on Bybit.

Be sure to keep an eye on these exclusive campaigns with 

 every Monday. Complete simple tasks to earn additional trading bonuses and coupons.  

Bybit Zero Fees, Zero Excuses: 3 Ways to Build a Consistent Trading Habit

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards