Crypto Market Update- January 26th, 2021- Rothschild Increases BTC holding via Grayscale

A large amount of open options this week, expect significant volatility, possible upside run as high as $52K.

Bitcoin’s options market continues to grow along with an institutional-led bull run in the leading cryptocurrency. Yet, while many use options to hedge their positions, the large amounts of bitcoin options slated to expire in a few days may themselves lead to wild price swings as January draws to a close.

At press time, there are 120,300 contracts worth $4 billion set to expire this Friday on major exchanges Deribit, CME, Bakkt, OKEx, LedgerX, according to data source Skew. Much of that amount can be found on Deribit, the world’s largest crypto options exchange by trading volume. It is on track to register a record monthly bitcoin options expiry of 102,162 contracts (nearly $3.5 billion).

Chicago-based Rothschild Investment Corporation recently increased its position in Grayscale Bitcoin Trust to 30,454 shares, a 24% increase from October.

  • The institutional investment manager of $1.4 billion disclosed Monday its shares in the trust were worth $975,000 at the end of 2020.

  • Rothschild Investment first bought shares of Grayscale’s bitcoin vehicle in 2017 but appeared to have exited that position shortly after. It began buying again in 2019.

Ethereum slid by 5.46% on Monday. Partially reversing a 12.92% rally from Sunday, Ethereum ended the day at $1,317.97.

A bullish start to the day saw Ethereum rally to an early morning intraday high and a new swing hi $1,477.30 before hitting reverse.

Ethereum broke through first major resistance level at $1,457 before falling to a late intraday low $1,293.65.

Steering clear of the first major support level at $1,277, Ethereum moved back through to $1,300 levels to limit the downside.

Balancer – the decentralized asset management platform – has announced the start of a new gas reimbursement program that will run for four weeks starting today. The Balancer community has approved 30,000 BAL tokens to be used to fund this gas reimbursement initiative.

The main motivation behind this new program is to make it easy for users to try out the new Balancer exchange UI without getting hit with huge gas fees. The team estimates that these gas reimbursements could save traders on Balancer anywhere between 40% to 95% on gas costs. Balancer v1 was designed with security in mind which led to greater gas costs per transaction compared to more optimized decentralized exchanges like Uniswap.

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