Nov 11, 2024: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Macro Overview — Small Cap Surge Following Anticipated Tax Cuts and Deregulation

Throughout this year, Wall Street analysts have expressed skepticism about the sustainability of a broad market rally that has driven stock prices up by trillions, boosted Bitcoin and sparked a credit boom. Despite a brief market dip in summer, those concerns have largely proven unfounded. With Donald Trump’s return to the presidency, new worries have emerged: investors may not be bullish enough.

This uncertainty has spurred a buying frenzy across stocks, credit and cryptocurrencies. Over five days, equities gained over $2 trillion, including a remarkable $20 billion inflow into funds on one day alone. Small-cap stocks surged nearly 9%, banks rallied and Bitcoin reached a new high.

This optimism stems from expectations that Trump’s pro-growth agenda — featuring tax cuts and deregulation — will further stimulate an already strong economy, especially as the Federal Reserve shifts toward a more accommodative monetary policy. However, bonds remain a point of caution due to concerns about the fiscal stimulus's cost.

While the current bullish sentiment is palpable, some analysts warn that rapid price increases might overlook underlying economic vulnerabilities. As the market continues to rally, caution about potential risks associated with a Trump presidency remains crucial.

Weekly Crypto Highlight — The Future of Polymarket: A Deep Dive Into Its Impact and Potential

Presidential forecast bets on Polymarket. 

Polymarket, a blockchain-based prediction market operating on the Polygon PoS network, has emerged as a significant player in the realm of political forecasting. The platform allows users to place bets on a wide array of events, from sports to politics to pop culture. This flexibility, combined with its crypto foundation, positions Polymarket uniquely against traditional forecasting methods, particularly in light of the recent U.S. election results.

On election day, Polymarket assigned Donald Trump a 62.3% chance of winning, a prediction that sharply contrasted with the mainstream narrative. Legacy media, including prominent analysts like Nate Silver, suggested a tightly contested race, with many forecasts favoring Vice President Kamala Harris. However, Polymarket’s prediction was validated when Trump won convincingly, garnering a significant portion of the popular vote, even as Republicans were taking control of the U.S. Senate and, likely, the U.S. House of Representatives. This outcome highlighted a critical divide between traditional polling and the insights drawn from prediction markets.

Polymarket was not alone in its forecasting. It led among betting platforms, facilitating approximately 12.8 million election-related trades and achieving a lifetime volume exceeding $3.2 billion. The open interest across its election markets reached nearly $398 million, attracting over 282,800 traders. Despite these impressive metrics, many experts dismissed Polymarket as untrustworthy, citing its lack of regulation and concerns about manipulation by large bettors, or "whales."

Critics have failed to recognize the fundamental strengths of prediction markets. Unlike traditional polls, which can be constrained by methodology and sample biases, prediction markets aggregate information from diverse participants, offering a more dynamic and responsive assessment of probabilities. With real money at stake, participants are incentivized to accurately gauge outcomes, creating a robust environment for information synthesis. This principle was evident as Polymarket reacted to electoral developments much faster than legacy media, with reports suggesting that even Trump’s campaign monitored Polymarket for real-time insights.

As the crypto landscape evolves, Polymarket stands at the forefront of a paradigm shift in how events are forecasted. The platform's integration of blockchain technology not only enhances transparency but also attracts a demographic eager for innovative financial solutions. Anticipated expansion into the U.S. market under a potentially more crypto-friendly administration further suggests that Polymarket could capitalize on the burgeoning online gambling and betting sectors.

Looking ahead, Polymarket's future appears promising. With its ability to challenge conventional wisdom and deliver accurate and timely predictions, it’s well-positioned to reshape political betting in America. As public acceptance of market-based information grows, Polymarket may lead the charge in mainstreaming crypto-powered prediction markets, ultimately transforming the landscape of political forecasting and betting. This evolution signifies a broader trend whereby crypto increasingly influences traditional sectors, paving the way for innovative applications across various domains.

As Bitcoin hit a new all-time high of approximately $77,200 following the U.S. presidential election results, the cryptocurrency market is witnessing unprecedented inflows into Bitcoin Spot ETFs. This surge reflects growing investor optimism, driven by expectations of a pro-crypto regulatory environment. Billions of dollars have flowed into these ETFs, highlighting the market’s optimistic anticipation toward the world’s largest cryptocurrency. 

Advanced

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Weekly Institutional Insights: BTC Reaches ATH; Polymarket’s Role in Shaping Future of Betting Markets

Crypto options give traders the right to buy or sell an underlying crypto asset at a specified price and date. Discover how to get started trading crypto options on Bybit.

Crypto options are derivatives contracts that give traders the right to buy or sell an underlying crypto asset at a specified price on a predetermined date. They offer flexibility without requiring holders to own the underlying asset.Bybit offers various expirations and USDC-settled contracts, making crypto options trading accessible and straightforward.

 are contracts that give you the right, but not the obligation, to buy or sell a cryptocurrency, such as Bitcoin (BTC) or Ether (ETH), at a specific price in the future.

People use crypto options for two main reasons: to make money if the price goes the way they predict, or to protect their positions if the price goes against them. 

Since traders aren’t buying the actual crypto itself, crypto options are seen as a flexible way to take advantage of market ups and downs. That’s why many traders use them to manage risks or gain exposure using 

To understand how crypto options work, let’s go over some basics.

Strike Price and Key Terms: ITM, ATM and OTM

 is the price at which you can choose to 

There are three terms used to describe a strike price’s relationship to an asset’s current market price:

Options come in two basic types: calls and puts.

In addition to buying call and put options, traders can also sell them. Briefly, here’s how it works.

Crypto traders use options to leverage their market positions while managing risk in the volatile cryptocurrency market. Options provide traders with the ability to speculate on price movements without the need to own the underlying asset directly. They also serve as an essential tool for hedging, as traders can protect their portfolios against adverse price movements. For instance, if a trader holds a significant amount of Bitcoin (BTC), they might buy put options to guard against a potential price drop. 

Additionally, options allow traders to use less capital as compared to buying cryptocurrencies outright, providing leverage that can amplify gains. Moreover, options strategies such as writing covered calls (see below) can generate income on one’s crypto portfolio.

Which Crypto Options Can You Trade on Bybit?

. With options, you can get exposure to these assets without buying them directly.

Bybit's options are USDC-settled. This means any profit or loss is calculated in USDC (a stablecoin pegged to the U.S. dollar), making transactions simpler and obviating the need for actual crypto transfers.

Any gains or losses directly affect your account balance without the hassle of holding the underlying asset. You can focus on your trading strategy while enjoying a straightforward settlement process.

Bybit offers a variety of expirations to suit different trading styles, from short-term plays to long-term positions. You can choose from daily, bi-daily, tri-daily, weekly, bi-weekly, tri-weekly, monthly, bi-monthly and quarterly expirations. This allows each trader to adapt to market conditions, as well as their personal trading strategy, whether they’re after quick gains or looking to hold out for larger trends over time.

Getting started with crypto options trading on Bybit is simple and intuitive, whether you’re a beginning trader exploring options for the first time or an experienced trader looking to refine your strategies. 

 is ready, the next step is to fund it with crypto or fiat currency. Head to the 

Note that as Bybit’s options contracts are settled in USDC, you have to transfer USDC as margin to trade options.

Step 2: Access the Options Trading Platform

In this guide, we’ll show you how to trade Bitcoin options.

On your desktop, navigate to Bybit’s options trading platform by selecting 

The options chain is a central feature where you’ll find available contracts, categorized by expiration dates and strike prices. You can choose from a wide range of expiration dates, including daily, bi-daily, tri-daily, weekly, bi-weekly, tri-weekly, monthly, bi-monthly and quarterly expirations. 

Bybit offers two types of options: calls and puts. Select a 

 if you expect Bitcoin’s price to rise, or a 

Calls are displayed on the left side of the options chain, while puts are on the right side, with strike prices listed down the middle.

Step 5: Choose Your Strike Price and Expiration Date

Pick the strike price and expiration date that best match your trading strategy. For example, if you believe BTC’s price will increase over the next week, you might select a weekly call option at a strike price near its current market value.

Once you’ve selected a contract, choose your desired strike price. This will open an order placement window in which you can enter key trade details like the following:

If you’re trading Bitcoin options, you’ll see additional details, such as implied volatility and 

 (delta, gamma, etc.), which can help you evaluate potential risks and rewards.

After you’ve reviewed your order details, click on 

A confirmation window will appear, showing a summary of your trade. Click on 

 and your options order will be submitted.

When it comes to crypto options trading, it’s essential to have a strategy. Here, we’ll briefly go over a few beginner-friendly strategies that are popular among traders.

How to Use Bybit's Option Strategies Feature

 feature makes it easy to execute various options strategies in just a few steps.

Step 1: Access the Options Strategies Feature

 at the bottom of the screen, then select 

Each strategy card has an introduction, a profit and loss (P&L) graph and key metrics, such as maximum profit and margin requirements.

Bybit provides two modes to set up your options strategy: 

Default Mode (Recommended for Beginning Traders)

In Default Mode, Bybit automatically selects the coin, strike price and expiration date, based on current market conditions.

: In Default Mode, parameters such as strike price and expiration date are automatically set, and cannot be changed.

Pro Mode offers greater flexibility, allowing you to customize your strategy parameters.

Once your strategy is configured, click on 

After creating a strategy, you can track it under 

Confirm the strategy information, then click on 

 to close it. The strategy will close as a market order.

In cases of extreme market conditions, lack of liquidity may impact the ability to close the strategy, so be mindful of market conditions when exiting.

Intermediate

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How to Get Started With Bybit Options Trading

Learn about USDT-settled crypto perpetuals, one of the most popular crypto derivatives product, how they work and how you can start trading them.

Crypto perpetuals futures are a type of derivatives product that allows traders to gain exposure to cryptocurrencies with leverage. Traders have the flexibility to go 

 on crypto assets, and keep their positions open for indefinite periods. 

With USDT perpetual futures on Bybit's intuitive and user-friendly trading platform, you can realize these benefits with futures contracts settled in USDT, a leading 

This article will introduce you to USDT-settled crypto perpetuals, and explain how they work and how you can start trading them. No worries — we'll guide you through each step you need to take to get started with USDT perpetual futures trading on Bybit.

What Are USDT Perpetual Futures Contracts?

 are crypto perpetuals settled in Tether USD (USDT), a stablecoin pegged to the U.S. dollar (USD). As derivatives, cryptocurrency perpetuals enable you to trade an underlying asset like Bitcoin (BTC) or Ethereum (ETH) without an expiration date. While you are obliged to buy or sell traditional futures at expiration, you can hold crypto perpetual contracts indefinitely.

Crypto perpetuals allow you to use leverage to amplify your potential returns and keep your positions open for indefinite periods. They also offer you the flexibility to profit from both upward and downward price movements with long and short trades. Perpetual futures trading can also help you hedge against market risks without owning the underlying asset.

On Bybit, all settlements, margin, and profit and loss (P&L) calculations are denominated in USDT for linear USDT perpetuals. On the other hand, 

, which you can use to generate returns when crypto prices fall, are settled in the underlying asset.

Tether USD (USDT) is the leading stablecoin by market capitalization. As of November 6, 2024, it 

 a $120.55 billion market cap, and a $143.26 billion trading volume in the past 24 hours. USDT is issued and managed by the British Virgin Islands–based Tether Limited. It's owned by iFinex Inc, the same company that operates the Bitfinex cryptocurrency exchange.

USDT is a fiat-pegged stablecoin that closely follows the price of the U.S. dollar. To ensure the stablecoin's price stability, Tether maintains physical reserves, of which nearly 84% is 

Top Bybit USDT Perpetual Futures by Trading Volume

Bybit has a wide selection of USDT perpetuals that you can trade to speculate on the prices of underlying assets.

As of Nov 7, 2024,, the top 5 USDT perpetual contracts by 24-hour trading volume on Bybit are 

How Do USDT-Settled Crypto Perpetuals Work?

, crypto perpetuals don't have an expiration date, and can be held indefinitely. Since they don't expire, no physical delivery of the underlying asset is necessary. Instead, perpetual contracts are settled in cash, and their primary purpose is to enable traders to speculate on crypto prices without owning the underlying asset. On Bybit, settlement takes place in the USDT stablecoin for USDT perpetuals, and USDC for 

Because they lack an expiration date, crypto perpetuals rely on the funding rate mechanism to track the underlying asset's price. The funding rate can be positive or negative, and can change based on how close the futures price is to the spot price.

A positive funding rate indicates an overall bullish market sentiment. When the futures price is trading at a higher level than the spot price, buyers (longs) are required to pay sellers (shorts) the funding amount. In contrast, a negative funding rate is generally a signal of bearish market sentiment. Here, longs pay shorts the funding amount (as the futures price is lower than the spot price).

Key Metrics for USDT Perpetual Futures Contracts

In addition to the funding rate, some of the key metrics of USDT perpetual futures contracts include the following.

Bybit is a user-friendly and intuitive trading platform with a wide selection of USDT perpetuals. Thus, it’s an excellent choice for both veteran traders and beginning traders seeking to dabble in perpetual futures trading.

In the following section, you'll find a comprehensive guide that guides you through each step to get started with crypto perpetual futures trading on Bybit.

The first step to get started with USDT perpetual futures trading on Bybit is to open a 

. A UTA is mandatory in order to trade perpetuals on the platform. and will provide you with a tailored trading experience, account finances and 

For new users, Bybit will automatically open a UTA. Simply 

If you have a Standard Account with Bybit, you can upgrade it to a UTA by clicking on 

You can also upgrade your account by clicking on 

After reading the account's details, as well as acknowledging Bybit's Trading Rules and Terms of Service, click on 

Once your Unified Trading Account is ready, the next step is to fund it with crypto or fiat currency. Head to the 

Select your preferred cryptocurrency, the blockchain from which you’ll make the transaction, and 

 for auto-channeling deposits. Always ensure that you’ve chosen the correct network in order to prevent a loss of funds. After doing so, copy/paste the wallet address or scan the QR code with your phone's camera to initiate the deposit from your wallet.

You can also fund your account with fiat currency via the 

With a funded Unified Trading Account, it's time to open a new USDT perpetuals position on Bybit. To do that, click on 

 tab. In this guide, we’ll open a position in the 

After analyzing the chart and determining an entry point, use the trading widget on the right to open your position.

, which will apply to your account. You can choose between the following options.

Once you’ve chosen your margin mode, the next step is to set the leverage for the trade. Use the slide to select a value between 1x and 100x, and click on 

Next, select an order type for your trade from the following choices.

After selecting your order type, set the order amount for the trade. You can order either by quantity, denominated in the underlying asset, or by value, denominated in USDT.

order to manage your risks efficiently. You can do that by ticking the box next to 

 to open a short USDT perpetual position. Your order will automatically be executed by Bybit's robust matching engine, based on the provided parameters.

Step 4: Manage Your Crypto Perpetuals Positions

 at the bottom of the trading page. In this menu, you can view and manage all your past and current orders and their P&L.

Maintenance Margin Requirements for Leveraged USDT Perpetual Positions

A margin balance is necessary to keep your USDT perpetuals positions open on Bybit. Margin is calculated based on individual positions for both isolated margin and cross margin accounts. 

However, you can only use the settlement asset (USDT) to trade USDT perpetuals in 

. If the market price reaches the liquidation price, liquidation is triggered

On the other hand, Bybit converts all the collateralized assets in your account into USD value in 

 mode. Unlike for isolated accounts, a liquidation is only triggered when the account MMR reaches 100%.

How to Calculate Position Sizing Using Position Calculator

In perpetual futures trading, position sizing determines the amount of capital you put at risk. It’s a critical aspect of risk management that helps you decide the optimal size for your trades.

You can use Bybit's Calculator by clicking on the 

 icon next to the leverage settings in the trading widget to estimate the right sizing, based on your 

For example, suppose you go long on the BTCUSDT crypto perpetuals contract. With a 1 BTC order quantity and 10x leverage, you can generate a 14.48% return on investment (ROI) with 1,070.5 USDT in profits by opening your position at the price of 73,929.5 USDT and closing it at 75,000 USDT.

Advanced Tools for USDT Perpetuals Trading

You can also take advantage of the following advanced tools to trade USDT perpetuals.

Getting Started With USDT Perpetual Futures on Bybit

Crypto perpetuals allow you to amplify your position size with leverage, and open both long and short positions without an expiration date.

With Bybit's user-friendly and intuitive trading platform

,you can trade a wide selection of USDT futures with competitive fees, up to 100x leverage and access to top-tier liquidity.

However, understanding the risks involved and efficiently managing them are critical for traders' long-term success in the perpetual futures market. Tools such as Stop Loss and Take Profit orders can help reduce your potential losses and maximize profits.

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How to Trade USDT Perpetual Futures on Bybit

OKZOO (OKZ) blends animal meme coins and AI in a Solana-based GameFi ecosystem, offering unique token rewards, interactive games, and personalized AI companions.

, animal-themed tokens have dominated the space. 

 (PEPE) continue to reign in the crypto charts with their large market caps. While these examples have been around for years, more recent meme coins, such as 

 (POPCAT), have also done remarkably well in 2024.

At the moment, animal meme coins are still receiving a lot of hype in the crypto space, with no sign of slowing down. OKZOO has tapped into this hype to create a 

 ecosystem that will host gaming tokens designed around the meme coin culture.

 that leverages blockchain technology to internally incubate games and animal meme coins, or let external developers launch gaming tokens/animal-themed meme coins through its platform. 

It aims to tap into Solana’s affordability, security and scalability in order to release new casual games every four to six weeks, which would help expose users to an extensive variety of quality games with low valuation but unique gameplay.

Calling itself the Animal Internet, OKZOO’s grand vision is to first build, incubate and launch animal games and animal-themed meme coins through the OKZOO 

 (DEX). Thereafter, the characters of these games will be incorporated into a meme coin, and OKZOO users are allowed to earn these tokens by playing the casual, lightweight games.

To attract players, OKZOO has set a strict requirement: gaming projects need to have a 

 (FDV) between $5M and $8.5M before listing on either a DEX or 

 (CEX). As such, SOL users will be attracted to playing the game and trading low-valuation tokens at the same time.

The native utility token for OKZOO is the OKZ token, which is central to the platform’s functionality and user experience. The OKZ token facilitates transactions within the ecosystem, granting access to exclusive features, digital assets and the platform's advanced AI-driven models. Token holders can use OKZ for various in-platform transactions, making it an integral asset for participants within the OKZOO world.

OKZOO's platform stands out for its unique and advanced features. The combination of blockchain technology with artificial intelligence has allowed OKZOO to offer tools and services beyond the typical blockchain project. Key features of OKZOO include:

A central feature of the OKZOO platform is its AI companion model, which allows users to interact with a personalized AI assistant that enhances their experience within the OKZOO ecosystem. Each AI companion is unique to the user, and can adapt to the user’s preferences over time, making it a highly personalized digital tool that makes navigating and utilizing the OKZOO platform both seamless and engaging.

The AI companion can also provide users with insights on optimizing their in-platform transactions, help monitor asset portfolios and deliver updates on new developments within the OKZOO ecosystem.

Through Nov 18, 2024, 7AM UTC, you can participate in an 

 that’s offering 4,532,880 OKZ in rewards. To be eligible for rewards, you’ll first need to sign up for a Bybit account and set up a 

, or import your Seed Phrase Wallet into the Bybit Wallet. Next, deposit 10 USDC into your wallet. You’ll also need to complete the following tasks to qualify for rewards:

OKZOO's development is structured into four key phases, each with distinct goals to improve and expand the platform’s offerings.

As animal meme coins and games continue to generate hype in the crypto space, OKZOO’s ecosystem is ideal for projects in this niche. The platform allows new tokens to be generated quickly without a hefty budget, which makes them attractive to new users. OKZOO is a project to watch as its Solana-based gaming ecosystem continues to roll out.

Beginner

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OKZOO (OKZ): Bringing Animal Memes to Life in AI-Powered Games

Crypto Insights

Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

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: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Macro Overview — Market Watches Out for Upcoming August Job Report

In recent years, a key truth about the U.S. economy is that consumers, who are crucial to its growth, continue to spend vigorously. As the pandemic recession transitioned into a recovering labor market, American spending — through online purchases and credit card swipes — has sustained economic expansion. With a potential Federal Reserve interest rate cut on the horizon, recent data indicates a decline in inflation and resilient consumer spending, despite rising borrowing costs. This scenario aligns with Fed Chair Jerome Powell’s hopes for a soft landing for the economy.

However, challenges remain. Income growth is sluggish, the job market is softening and the savings rate is decreasing, raising concerns about the sustainability of consumer spending. These factors suggest caution, especially after a tumultuous few years marked by recession fears.

Looking ahead, the upcoming jobs report will provide crucial insights into the labor market before the Fed's policy meeting. Meanwhile, the European Central Bank has already begun cutting rates, with euro-area inflation dropping to its lowest level since mid-2021. As noted by Allison Schrager in 

, it's time for the U.S. government to increase spending to foster economic growth, ensuring that the Fed isn't the sole driver of recovery.

Weekly Crypto Highlight — Vitalik Doesnt Like DeFi

When Vitalik Buterin, Ethereum’s founder, expressed concerns on X about the sustainability of most 

 (DeFi) projects, it sparked significant backlash within the community. He suggested that many DeFi protocols are self-referential and lack respectability, emphasizing that they should meet two key criteria: 

. This criticism was particularly pointed toward practices such as 2021-era liquidity farming, which he deemed unsustainable due to token inflation.

Prominent figures in DeFi, such as Sam Kazemian of Frax Finance, voiced their disappointment, arguing that DeFi is crucial to Ethereum’s value (which exceeds $300 billion). Buterin’s stance implies that only 

 (DEXs), stablecoins and platforms like Polymarket meet his standards

, as many DeFi protocols exhibit centralization and lack ties to the real economy.

The top five DeFi categories are liquid staking, lending, bridges, DEXs, and liquid staking, among which liquid staking, lending and staking might not meet Vitalik's requirements.

While some may view his critique as overly harsh, it reflects a broader truth about the current state of DeFi. Buterin seems to advocate for a more mature version of DeFi, one that connects better with real-world economies. However, he may not be fully attuned to ongoing developments in DeFi, as his focus is likely on enhancing Ethereum’s core functionalities. Ultimately, his comments could steer builders toward more meaningful use cases, benefiting the ecosystem in the long run.

Total Bitcoin Spot ETF Flows.Source: CoinGlass, as of Aug 30, 2024

Bitcoin Spot ETFs have recently experienced consecutive outflows for five straight days, coinciding with Bitcoin's decline below the $60,000 mark. Its repeated failure to hold above this critical threshold suggests that traders are being cautious, perhaps awaiting more robust indicators before committing further capital.

Compounding this uncertainty, the economic landscape this week lacks any blockbuster data that may spur market movement. Investors are now seeking more precise signals regarding Bitcoin's subsequent direction, including both the upcoming August 2024 job report next Friday, and moves from central banks worldwide. 

Weekly Institutional Insights — Bitcoin Fails to Climb Above $60K as Vitalik Buterin Expresses Concerns Over DeFi

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards