The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk news reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Wednesday! Here’s what you need to know today in crypto: |
- Paypal received a subpoena from the SEC requesting documentation about its USD stablecoin.
- An updated bankruptcy plan filed by Genesis shows it is now focused on liquidation.
- A ‘Santa Rally’ could push bitcoin to $56,000 by year-end, says Matrixport.
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CoinDesk Market Index (CMI): 1,365 +3.0%
Bitcoin (BTC): $35,407 +2.9%
Ether (ETC): $1,839 +2.3%
S&P 500: 4,237.86 +1.1%
Gold: $1,996 +0.8%
Nikkei 225: $1,996 +0.8% |
PayPal (PYPL) received a subpoena from the U.S. SEC requesting documentation about its USD stablecoin on Wednesday, the global payments giant said in a filing. In August, the firm announced it was entering the cryptocurrency market with the U.S. dollar-pegged stablecoin, PayPal USD. "On Nov. 1, 2023, we received a subpoena from the U.S. SEC Division of Enforcement relating to PayPal USD stablecoin. The subpoena requests the production of documents. We are cooperating with the SEC in connection with this request," PayPal revealed in its quarterly earnings report Thursday. |
PAYPAL Headquarters (Shutterstock) |
An updated bankruptcy plan filed by crypto lender Genesis last week represents a significant change of plans, the U.S. government said in a filing on Wednesday. The lender is now seeking to liquidate its assets rather than reorganize them. The apparent U-turn by Genesis – made after the crypto lender and its parent company Digital Currency Group (DCG) were sued by the New York Attorney General (NYAG) – could add extra delays to the wind-up process, the filing by U.S Trustee William Harrington said. DCG is also CoinDesk’s parent company. One of the most famous sayings on Wall Street is that a bull market tends to stay in motion unless an external force acts upon it. Bitcoin (BTC) has historically lived up to the adage modeled along Sir Isaac Newton’s third law of motion and could do so again, rising as high as $56,000 by the end of the year, according to crypto services provider Matrixport. “If bitcoin is up at least +100% by this time of the year, then there is a +71% chance or five in seven that bitcoin would finish the year higher with average year-end rallies of +65%," Markus Thielen, head of research and strategy at Matrixport, said in a note to clients on Thursday. “As bitcoin tends to reach its peak by December 18th, we could call the six to seven weeks from early November to mid-December Bitcoin’s Santa Claus Rally.” |
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Market Insight: Bitcoin Put Options Look Unusually Cheap |
Put options or bearish bets tied to bitcoin (BTC) are trading at a discount to historical standards, offering a rare opportunity for bulls to snap up downside hedges at cheap valuations. The conclusion is based on the ratio between two metrics – implied volatility for 25-delta out-of-the-money (OTM) BTC put options and the 30-day implied volatility (IV) of at-the-money (ATM) options. The ratio has dipped below 1.00, according to data provided by Amberdata. It’s a sign that 25-delta put options listed at strikes below bitcoin’s current market price are undervalued in volatility terms relative to those at strikes near the spot price. |
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- The chart shows the six-month BTC options skew, which measures the spread between call and put options expiring in 180 days, has risen to 9.47%, the highest since August 2021.
- It shows bias for bitcoin strength over the next six months is strongest in over two years.
- Source: Amberdata
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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