Prospective content for October 16th
This week, while traders watched Bitcoin BTC fluctuate above $80,000 during the release of key U.S. inflation data, a decision by the U.S. Securities and Exchange Commission (SEC) received much less attention.
SEC has approved the listing of binary options linked to key performance indicators ( KPI ) of 23 US-listed companies. These indicators include the trading volume of the crypto exchange Coinbase Global ( COIN ), the number of customers and revenue of Robinhood Markets ( HOOD ), as well as the Bitcoin production of mining company MARA Holdings ( MARA ).
Crypto America host Eleanor Terrett stated on X: "For the crypto industry, this provides a new way for companies related to trading and encryption to perform, rather than just directly betting on BTC prices." She said, "SEC has approved this specific securities option structure, while also leaving room for contracts with different structures to fall under the jurisdiction of CFTC."
Binary options are the simplest type of option contract, allowing traders to place bets on a simple yes or no question. For example, traders can bet on whether the trading volume of Coinbase will exceed a set value before a specific date.
According to a statement dated October 13th, Chairman Paul Atkins approved a rule change submitted by Cboe Global Markets. These contracts adopt cash settlement and European option structures, which means they can only be exercised at maturity. They will be settled based on the data in the documents submitted by the company to SEC, rather than the figures presented in the financial reports.
Cboe plans to list these contracts this month, and Robinhood is expected to become the first brokerage firm to offer these contracts to retail investors. Trading cannot begin until Cboe Clear U.S., this clearinghouse, obtains temporary registration; another application is still pending as well.
Atkins indicates that this approval does not cover similar contracts regulated by the Commodity Futures Trading Commission (CFTC), such as those on the prediction market platform Kalshi. He stated that jurisdictional disputes between institutions have hindered innovation for decades, and this approval "reflects a new spirit of harmony, innovation, and investor choice."
As for the market, analysts remain optimistic about the future prospects after Bitcoin successfully held above the 50-day simple moving average support this week. Keep an eye on it!
For more analysis on today's trends in altcoins and derivatives, please refer to "Crypto Markets Today". For a complete list of events this week, please see "Crypto Week Ahead" within "CoinDesk".
MSCI Approves Rules to Possibly Exclude Strategy and Metaplanet from Stock Indexes (CoinDesk): One of the world's largest stock index providers, MSCI, has finally finalized relevant rules that may exclude the stocks of leading Bitcoin holding companies Strategy and Metaplanet from its global stock indexes.
After the OpenAI entity ran out of funds on Ethereum, it used a wallet that did not belong to it ( CoinDesk ). A OpenAI research model, after running out of funds on the Ethereum test network, sought another person's wallet and found one using a publicly available recovery phrase. It then used the funds from that wallet to complete a coding task. This model was able to access that wallet without any hacking skills required.
XRP has not been able to make its holders wealthy like Bitcoin and Ethereum. The reasons are as follows. (CoinDesk): XRP is still far below its peak from 2017, while most other major cryptocurrencies have long since surpassed their respective highs. Analysts believe that this is related to the XRP supply and weaker demand.
Reuters: European stock markets rose in the early session on Friday. The market showed signs of recovery after a sharp decline in tech stocks the previous day. At the same time, the US dollar weakened and is expected to record a weekly decline.
Today's Signal
The chart displays the daily price fluctuations of Bitcoin since late July in the form of a candlestick chart, with a 50-day simple moving average overlayed on it.
Although the upward trend has stagnated since September 21st, the pullback has been relatively mild, with the 50-day moving average providing support. On Thursday, prices briefly fell below this level before rebounding.
This trend has led some analysts to begin betting that there is further room for increase in the value of this cryptocurrency.
- Circle Aiming at 40 new markets, global demand for stablecoins is growing 1 hour ago
- Quantum Alliance established, warning that 6.4 million Bitcoins are at risk from future quantum threats 1 hour ago
- Counterfeit coins outperform Bitcoin, Celestia rises by 16%, Warsh remains silent about interest rate plans for 4 hours ago
- Scammers were themselves defrauded through the Ledger spy chip vulnerability, losing nearly 5 million US dollars in Bitcoin 4 hours ago
- Live update: After Chairman Warsh made a comment, Bitcoin stabilized around $82,000 2 hours ago.
- A U.S. judge dismissed the appeal of Gemini to overturn a $5 million settlement, despite CFTC's support just 2 hours ago.
- MSCI approved the rule to potentially exclude Strategy and Metaplanet from the stock index 3 hours ago
- XRP has not been able to make its holders wealthy like Bitcoin and Ethereum have. The reasons are as follows. 6 hours ago.
- OpenAI The entity used a wallet that did not belong to it 7 hours ago after its Ethereum funds were depleted.
Beyond risk-free rates: Diversified real-world returns in productive stablecoins
Diversified RWA stablecoins can maintain a yield of 5% to 7% with the support of real credit, while the yields of crypto financing are being compressed to around 4%. GENIUS is promoting the transfer of yields off-chain; within three years, TAM is expected to grow to $4 billion.
Why it's important:
Diversified RWA stablecoins can maintain a yield of 5% to 7% with the support of real credit, while the yields of crypto financing are being compressed to around 4%. GENIUS is promoting the transfer of yields off-chain; within three years, TAM is expected to grow to $4 billion.
Bitcoin, copper, stocks, and yields all decline; gold rises.
How analysts view the impact of U.S. inflation on Bitcoin
The STX of Stacks has risen by 50% within four weeks as a Bitcoin Layer-2 token.
Circle Aiming at 40 new markets, the demand for global stablecoins is growing
Quantum Alliance established, warning that 6.4 million Bitcoins are at risk from future quantum threats
