Bitcoin Holdings by Exchanges Reached New Lows, Signal of Bull Coming

[bitbit347]

According to Glassnode data, the number of bitcoins held by cryptocurrency exchange wallets has reached a new low in 18 months. This Monday, the number of Bitcoins holding was only slightly higher than 2.3 million, which has decreased by 11% this year. In the same period, the number of Ethereum has increased by more than 7%. There is a market view that investors are more willing to hold bitcoin and turn to trading other currencies. Lucian, chief analyst of BitOffer Exchange, claimed that: “People are accumulating (BTC), and market participants now seem to have a longer time preference and this trend will continue. “

As Lucian’s point of view, there are indeed some strong holders of bitcoin in the market. No matter how the market fluctuates, it will not affect their long-term views. Most of those investors are early bitcoin traders who have benefited a lot from the last decade. The low point of market movement is their opportunity to take the position, and they firmly hold the currency in the shock range. This is also the main reason for the recent decline in bitcoin trading volume on the exchange. The data shows that about 60% of the newly mined bitcoins in the past 12 months have maintained their positions. This phenomenon has also appeared in the previous bull market.



Whether the Grayscale fund continued to hold the currency or the exchange’s bitcoin holdings have reached a new low, they are all conveying the strong confidence of the long-term funds. The recent market conditions have also increased. In the market on May 27, bitcoin performed strong which breaking through both 4-hour and 1-hour 20 days moving averages and the highest reached 9230 US dollars in the day and finally closed at 9203.67. Bitcoin then reached a maximum of 9280 US dollars on May 28th. Although it has dropped slightly, it still stays in the 4-hour ascending channel.



As ordinary investors, most people will not hold the currency for a long time, but when facing the market that may start at any time. If investors do not arrange in advance, they may watch the bull market went far. So how can we minimize the risk of loss while seizing the opportunity?

Perhaps we can use some powerful products for hedging such as the bitcoin options tool launched by the BitOffer exchange.

what is bitcoin options?

Options are essentially kind of rights that enables the holder to buy or sells an asset at a fixed price at a specific date (or before the date). Just like the futures trading is a hedging tool for spot trading, so is options trading.

For example, when you plan to buy a house, dealers always offer discounts when you pay a deposit first. After then, when the value of the house drops sharply, you can choose not to buy the house, and your largest loss is the deposit. On the contrary, if the value of the house increases, then you would earn the price spread as profits. This is how options works and the deposit is the premium of the Options trading.

How to hedge?

The hedging is simply to open long and short at the same time. Suppose I consider that Bitcoin will immediately rise to 10,000 US dollars, so I start with 1 BTC at 9000 US dollars. Unexpectedly, 1 hour later, BTC fell 8,000 US dollars. If it is not hedged, it has already lost $ 1,000. But out of prudence, when long BTC, I spent $ 20 to buy a 1-hour BTC short option. After 1 hour, because BTC fell $ 1,000, the short option is equivalent to short 1 bitcoin, so Reap a gain of $ 1,000. Then my income = spot-1000 + option 1000–20 = -20, which means that I spent 20 US dollars in option fees and resisted the volatility risk of 1000 US dollars. Finally, my investment has been hedged



Whether it is the eve of a bull market or a high level of adjustment, as a common investor, as long as you choose the derivatives which suit you, you can defend against most of the risks. Bitoffer is one of the most professional cryptocurrency financial derivatives trading platform which bases its headquarter in Singapore. As the global financial derivatives trading service provider, Bitoffer adheres to the concept of “Endowing users with the ability to trade a variety of digital assets on a secure, efficient platform”. The requirement of Options trading at Bitoffer is much simpler with the truth that it request 0 margin, 0 fee, with as higher 1000X leverage, and does not have the liquidation mechanism. All of Bitoffer users have the opportunity to get a thousand times abnormal returns no matter the market is bull or bear, and the options trading can also be used as a hedging method to resist extreme market risks

[Hugo Barbosa]

Fly to the moon.

[Hugo Barbosa]

Take me as an example, I prefer to trade Bitcoin Options, as I could choose the different timing such as 1-min 2-min 5-min… Easy pieces during my way back home after work.

[UNIVERSE]

It is interesting news that bullish to come soon. I really expect the bullish can be in this month. But it seems quite impossible. The Bitcoin price seems to move slowly in the last few days.