Futures Weekly Wrap (May 9th-May 15th): Cryptos Attempt to Recover
Chart of the Week
Back to the Metaverse
- Trading volume for Metaverse tokens skyrocketed by a whopping 153% over the past week. The sudden upswing coincides with a spike in volatility where $22 billion were wiped out of the total cryptocurrency market capitalization.
- MANA ranked first among the most traded Metaverse tokens with a 982.32% week-on-week increase in trading volume. Likewise, trading volumes for GALA, SAND, and ALICE surged by 138.30%, 56.28%, and 33.48%, respectively.
Bitcoin Could Face Rejection
- At about $31,462.00 on Sunday, May 15th, Bitcoin appears to be rebounding after going through a steep correction.
- From a technical perspective, BTC bounced off from the $26,828.20 support zone and could have the strength to advance toward the $32,853.80 resistance level. Slicing through such an important supply wall can encourage sidelined investors to reenter the market and push Bitcoin to the next area of resistance at around $38,531.60. Still, any signs of weakness around $32,853.80 would likely result in a retest of the $26,828.20 support.
- On Binance Futures, the BTCUSDT Long/Short Ratio hit 1.78 on May 15th. Traders remain optimistic about the future price action as 64.05% of all accounts with an opened position in Bitcoin are net-long.
Weekly Market Mover
* Note: DEFIUSDT is a composite index perpetual contract that consists of a basket of DeFi protocol tokens listed on Binance. It is calculated using weighted averages of DEFI tokens’ real-time price on Binance and is denominated in USDT.
Highlights From This Week
Take Part in This Week’s Activities
- Interest Rate Reduction - Binance Margin launched a promotion to reduce interest rates for BTC, ETH, BUSD and USDT. Users may enjoy discounted annual interest rates as low as 0.8% with the mentioned assets during the promotion period.
- Content Challenge - Binance Futures launched a content challenge asking creatives to produce videos, articles, or infographics about why crypto holders should consider trading futures on our platform. Submit your content now for a chance to win 300 BUSD.
Food For Thought
- BUSD: All You Need To Know About the Stablecoin - Stablecoins are an important crypto asset class that has been gaining popularity with traders and investors alike. One of the few stablecoins that provides monthly audits is BUSD, making it a highly regulated asset. Learn about what BUSD is used for, the advantages BUSD has to offer, and the advancements it has made in the space.
Trade Our New Listings
- AVAX - BUSD-Margined AVAX Perpetual Contracts with up to 20x leverage are now live on Binance Futures. (Trade AVAXBUSD)
- USDⓈ-M Contracts - Binance Futures will launch BUSD-Margined NEAR, GMT, and APE Perpetual Contracts with up to 20x leverage between May 17th and May 19th.
- Delisted Contracts - Binance Futures conducted automatic settlement on the LUNA USDⓈ-Margined and COIN-Margined Perpetual Contracts, and the ANC USDⓈ-Margined Perpetual Contracts and delisted these contracts.
- Cross and Isolated Margin - ANC, MIR, and LUNA were delisted as borrowable assets on Cross Margin and Isolated Margin.
- Borrowable Assets - Binance added GAL, MOB, NEXO, SRM, STX and WOO as new borrowable assets on Cross Margin, and GAL, MOB and NEXO as new borrowable assets on Isolated Margin.
- TWAP Trading Algorithm - With the Time-Weighted Average Price (TWAP) trading algorithm, API users on USDⓈ-Margined Futures can programmatically disperse large orders into smaller quantities, automatically executing these orders at regular intervals to minimize the impact on market prices. Try it now!
- Liquidity Analysis - Binance Futures launched the Liquidity Analysis feature on the Derivatives Portal for VIP users. This section displays customized charts (Cost To Trade, Bid-Ask Spread, Book Depth) for selected USDⓈ-Margined Futures and COIN-Margined Perpetual Contracts on Binance Futures.
- Buy the Dip - The government of El Salvador, which was the first country to make Bitcoin legal tender last fall, has continued its buying spree with the purchase of an additional 500 BTC for roughly $15.3 million. (Trade BTCBUSD)
- On the Move - LDO, the governance token of Lido Finance, saw a significant spike in volatility after Binance announced that it will list the token.
- Broader Access - Japanese investment bank Nomura began trading cryptocurrency derivatives contracts this week, joining rivals including Goldman Sachs and JPMorgan in giving clients a way to access the crypto market.
- Instagram NFTs - The Meta-owned social media platform, Instagram, signaled its interest in turning non-fungible tokens (NFTs) into a revenue stream for the creators catering to its billion-plus user base, but figuring out how to leverage it is to be determined.
- Strong Hands - Founder and CEO of business-intelligence software firm MicroStrategy Michael Saylor explained that Bitcoin would need to fall to $3,562 before the company can get a margin call, but even at that point, it could post some other collateral.
* Note: Binance encourages our users to trade responsibly. Trading can be engaging and fun, but trading is a serious business, and it can lead to financial and emotional distress. Trading derivatives carries risk, and cryptocurrencies and other digital assets often have high levels of price volatility.
Disclaimer: The information provided in this section doesn't represent any investment tips or Binance's official position.
View full text