May 7, 2024

Bitcoin fluctuated between $63,000-$64,000 during the Asian and European mornings on Tuesday, consolidating its recovery from last week's crash below $57,000. Despite retreating from Monday's high of around $65,500, BTC appears to have settled into a range comfortably above the $60,000 level. At the time of writing, it was priced at $64,114, largely unchanged from its price 24 hours before, but nonetheless up around 10% since the start of May following a slide of over 16% in April. The broader digital asset market has dropped 1.33% since yesterday, as measured by the CoinDesk 20 Index (CD20). 

Robinhood would probably win a court case against the U.S. Securities and Exchange Commission, according to broker KBW. The SEC's issuing of a Wells Notice against the trading platform is surprising given its conservative approach to digital asset listings, KBW said in a research report on Monday. “Our preliminary view is that HOOD would likely fight the SEC in court and has a higher likelihood to prevail than most U.S. competitors (if put in similar situations) given HOOD’s stricter listings standards,” the authors wrote. KBW added that HOOD shareholders won't have full clarity on the outcome of any legal case until late 2025, based on the timescales of the SEC's ongoing suit with Coinbase.

Digital bank Revolut's new crypto exchange is now available to professional cryptocurrency traders. Revolut X is designed to entice users to trade through it rather than buying and selling with the Revolut app by offering lower fees. Revolut will charge zero fees to the maker of a trade and 0.09% to the taker. Revolut has allowed the buying and selling of crypto within its app for several years and has now launched its own exchange to compete with other leading participants. The London-based company, which has more than 40 million customers worldwide, is among the first banks to build a standalone crypto exchange.

Bitcoin traders are reconsidering a surge to $100,000 following BTC's renewed price upswing.

There has been a notable increase in demand for bitcoin call options on exchange Deribit and over-the-counter networks. These options are targeting a rally in excess of $75,000 and reaching as high as $100,000.

"We are seeing some bullish follow-through in volatility and rates following the reversal bounce from Friday and into the weekend. BTC risk reversals have gone positive (calls more expensive than puts), and [there has been a] renewed demand for BTC Sep expiry $75,000 and $100,000 calls," QCP Capital said in a note on Monday.

A call option is a contract in which the buyer has the right to purchase an underlying asset at a predetermined price on or before a specific date. As such it is considered a sign of bullish sentiment.

At the time of writing, there are more than 150,000 active call options on Deribit, worth $9.5 billion. That's more than double the number of put options, which are a sign of bearish sentiment.