19 January

“Futures markets remain a powder keg for short-term volatility with Perpetual Futures Open Interest at ~250,000 BTC- a historically elevated level. Since April 2021, this has paired with large pivots in price action as the risk for a short or long squeeze increases, resolved in market wide deleveraging events.”

See Also: Cryptocurrencies Decline With Equities, Traders Remain Cautious

Payments platform Cash App is making the Bitcoin Lightning Network available to customers in the United States over the next few weeks.

Customers can send Bitcoin internationally from Cash App to any external compatible wallet to a friend, family members, a self-managed wallet, or any merchant that accepts Lightning Network payments, with zero fees.”

The partnership will see Coinbase working with Mastercard to classify NFTs as “digital goods,” which will, it claims, enable “a broader group of consumers to purchase NFTs.” The crypto exchange also promised to “unlock a new way to pay using Mastercard cards.”

Buying digital goods should be as simple as buying a T-shirt or coffee pods on an e-commerce site.”

See Also: NFT Marketplace OpenSea Acquires DeFi Wallet Firm Dharma Labs

“Bankhaus von der Heydt was formed in 1754 and has in recent years become one of the first regulated institutions in Germany to offer digital asset services. The German bank offers cryptocurrency trading and custody, the latter through technology provider and crypto unicorn Fireblocks.

The planned purchase forms part of BitMEX’s strategy to create a one-stop shop for regulated crypto products in Germany, Austria and Switzerland.”

Microsoft shook up the video game industry this morning, announcing that it will acquire publisher Activision Blizzard—the company behind Call of Duty and Warcraft—in a deal valued at $68.7 billion. And Microsoft says that it’s a move made in anticipation of the metaverse.

Gaming is the most dynamic and exciting category in entertainment across all platforms today, and will play a key role in the development of metaverse platforms.

Microsoft has been involved in the crypto industry for years, announcing an alliance with Ethereum software technology company ConsenSys back in 2015. Microsoft’s M12 venture fund also recently invested in Palm NFT Studio, and has released free educational NFTs around its hit game Minecraft, as well as promotional NFTs around last year’s Windows 11 launch.”

“The latest structured-finance alchemy from the crypto industry allows traders to get exponential returns on the price of ether (ETH). Last week, the decentralized options protocol Opyn launched an ether derivative contract linked to a new index called Squeeth – a word play on “squared-ether.” The index tracks ether’s price change, raised to the power of two.

The basic purpose of the new tool is to give traders exposure similar to the highly leveraged bets they could get from trading options, but without the need to set strike prices or determine contract expiration dates.

Squeeth turns the options trade into a perpetual contract and can be used as a hedge. On the long side – betting on price upside – the trade offers leverage without liquidations. Traders who take the short side – betting on prices to stay range-bound – can collect premium yield.

A key drawback is that Squeeth funding rates – the cost of holding long positions – are expected to be higher than a 2x leveraged position due to the product’s exposure to pure convexity.

The ideal market condition to hold Squeeth is when a trader has conviction in the upward price movement of ETH in the short- to mid-term.”

“Red Date Technology, the architect of China’s internet of blockchains, is working with the Shenzhen Municipal Government and Singapore’s Infocomm Media Development Authority (IMDA) to build the blockchain-based Transnational Trade Network (BTTN).

Using the BTTN, companies will be able to transfer trade data between countries and firms, while adhering to local data privacy and security laws. Much like with the Blockchain Services Network (BSN), Red Date envisions the BTTN as a fundamental piece of the future global blockchain architecture.

Just like with the BSN, Chinese companies won’t have access to permissionless chains, which allow anyone to join, to comply with Chinese regulations. Using the BSN’s interoperability technology, the BTTN will allow for permissioned and permissionless chains to interact.

Chinese data centers, like the one in Shenzhen, will host “a corresponding permissioned system-level chain for each public chain,” the white paper said. One such chain is dubbed the “Ethereum Access Chain.” With that, Chinese firms will be able to pay for gas in fiat currencies, while a permissioned chain records data to comply with Chinese law.”