Hedging Crypto Exposure with Crypto Futures
Cryptocurrency futures were first introduced in 2017, and these instruments can be utilized to speculate on the sector or to hedge other cryptocurrency exposures within the portfolio.
Cryptocurrency futures were first introduced in 2017, and these instruments can be utilized to speculate on the sector or to hedge other cryptocurrency exposures within the portfolio.
The 2021 trading year is almost in the books, and a review of this year’s biggest winners and losers should help investors and traders strategize for 2022.
The trading relationship between Ethereum and Bitcoin—as measured by the ETH/BTC ratio—has shifted this year, with Ethereum gaining significant ground against Bitcoin during the second half of 2021.
Research conducted by tastytrade shows that the top digital coins typically rally between 100-300% over the course of two to three weeks, before correcting or consolidating ahead of the next leg up.
A late-summer rally in uranium prices has now been linked to increasing demand from the cryptocurrency mining sector for nuclear-powered electricity.
“Trading the news” refers to a strategic trading/investing approach that typically involves “buying the rumor” and “fading the news.”
Market dynamics such as weather and pipeline outages have pushed natural gas prices higher in recent weeks, but interest from the cryptocurrency mining sector may also be influencing the market.
Market volatility has been higher than usual during the start of the 2022 trading year, with several big tech stocks making outsized moves on earnings, and the cryptocurrency sector rebounding strongly from a recent correction.