A cryptocurrency trader was trading in Uniswap V3's USDC-USDT liquidity pool on Wednesday when a suspected "sandwich attack" caused his $732,000 USDC to be exchanged for only $18,600 USDT, losing more than $700,000. According to on-chain data analytics, the event may have been initiated by a MEV (Maximum Extractable Value) bot. The bot emptied the liquidity pool by preemptively trading, causing a price imbalance and paying the block builder to prioritize processing...
This week saw a significant increase in volatility in the Ethereum (ETH) market, with implied volatility (IV) climbing rapidly, catching cryptocurrency options traders off guard. Changes in market structure have prompted traders to adjust their positions in response to potential downside risks. Cryptocurrency derivatives trader Gordon Grant has emphasized that the implied volatility of one-week options has exceeded 80%, and the market expects daily price fluctuations of nearly 4% in March.
Bitcoin traders are taking a wait-and-see approach as demand weakens, blockchain activity is lacking and liquidity inflows slow, reflected not only in lower volatility but also in a sharp drop in their holdings. "The market is in a cooling phase right now," said David Gogel, vice-president of strategy and operations at the dYdX Foundation. "Bitcoin has held up, but after failing to break through $105,000 in January, we've seen inflows slow and speculative assets like Meme take a hit."
Traders have now reassessed their previous stance on tariffs, which are expected to be used more as a negotiating tool. Click to view...
Bond traders are taking on record risk as they bet heavily on the Treasury market in anticipation of the Federal Reserve's first interest rate cut. Leveraged positions in Treasury futures have risen to a record high ahead of the central bank's annual meeting in Jackson Hole on Thursday. Unpositioned squaring positions rose to the equivalent of nearly 23 million 10-year Treasury futures contracts last week, a record and equivalent to a risk of about $1.50 billion per basis point, according to CME...
On July 15, bond traders are increasing their bets that the Federal Reserve will cut interest rates by 50 basis points in September, instead of the standard 25 basis points. Marilyn Watson, global head of fundamental fixed income strategy at BlackRock, said the Fed is likely to cut interest rates in September. But she also believes the Fed may start moving earlier in July. CME Group Inc.'s futures unpositioned squaring contract data showed that last Thursday's...
Traders in the US interest rate options market are taking an emerging bet on the direction of the Fed's interest rates: up to 300 basis points of interest rate cuts over the next nine months (12 cuts at the regular 25BP range). Over the past three trading days, positions in the options market related to the guaranteed overnight funding rate show that if the Fed cuts rates to a low of 2.25% in Quarter 1, 2025,...
Binance platform BNB has surged more than 10% from Sunday's low of $597 and is now nearing an all-time high of $705. However, with trading near $3 billion in the past 24 hours, options traders are exercising caution and buying put options with a strike price of $550-650. Bernd Sischka, chief commercial officer at PowerTrade, said: "11,250 BNB options were traded with calls with a strike price between $600 and $700 and puts with a strike price between $650 and $550. As prices move towards their 2...