derivative – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Sat, 17 May 2025 01:25:01 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.8 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 derivative – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Bitcoin stalls near record highs amid derivative pressures but breakout potential remains https://earlybirdsinvest.com/bitcoin-stalls-near-record-highs-amid-derivative-pressures-but-breakout-potential-remains/ https://earlybirdsinvest.com/bitcoin-stalls-near-record-highs-amid-derivative-pressures-but-breakout-potential-remains/#respond Sat, 17 May 2025 01:25:01 +0000 https://earlybirdsinvest.com/bitcoin-stalls-near-record-highs-amid-derivative-pressures-but-breakout-potential-remains/

Bitcoin (BTC) continues to exhibit on-chain strength despite a prolonged period of price compression between $100,000 and $105,000. 

According to Fidelity Digital Assets’ VP of research, Chris Kuiper, the flagship crypto remains in its “Acceleration Phase,” a period characterized by elevated wallet profitability and volatility, even as derivatives activity dampens upward momentum.

Bitcoin closed at $104,119 on May 13, with 99% of addresses in profit. Fidelity data shows that 10 days in May have qualified as high-profit, high-volatility sessions. Historically, this phase has aligned with breakout movements, including the surge that followed the US election in late 2020. 

Despite these conditions, Bitcoin has been unable to decisively breach its upper resistance levels, with closing prices largely contained within a narrow $94,000 to $104,000 band throughout the first half of May.

Derivatives activity creating headwinds

According to a May 16 report by CryptoQuant contributor Darkfost, the restrained price action stems from structural pressures in the derivatives market.

The report highlighted that cumulative net taker volume, a measure of aggressive trading flow, has remained negative since Bitcoin reclaimed the $100,000 level. This imbalance shows that short positions have outweighed longs, generating sustained selling pressure. 

The bearish positioning indicates that traders are skeptical of a near-term move to new all-time highs and are actively betting against further upside. As long as this imbalance persists, Bitcoin’s upward potential remains capped despite favorable conditions in spot and on-chain markets.

Price stagnation in the presence of bullish fundamentals is not unprecedented. However, even strong network signals can be muted temporarily when derivative flows overpower spot accumulation. 

The current divergence between derivatives activity and on-chain profitability highlights the friction in Bitcoin’s price discovery process.

Bitcoin volatility hits record low vs. gold

Bitcoin’s muted price movement has also resulted in a historic compression of volatility, which has hit levels last seen more than 10 years ago.

VanEck’s head of digital assets research, Matthew Sigel, noted on May 16 that Bitcoin’s 30-day volatility has dropped below gold’s for the first time since data tracking began. 

Based on Bloomberg terminal metrics, the BBR/GC1 ratio is now at 0.857, its lowest level over a decade.

While derivatives positioning remains a near-term barrier, historical patterns suggest that prolonged periods of volatility suppression have often preceded large directional moves. 

Whether that materializes again depends on shifts in taker flow, macro conditions, and liquidity conditions.

Bitcoin Market Data

At the time of press 1:56 am UTC on May. 17, 2025, Bitcoin is ranked #1 by market cap and the price is down 0.55% over the past 24 hours. Bitcoin has a market capitalization of $2.05 trillion with a 24-hour trading volume of $44.01 billion. Learn more about Bitcoin ›

Crypto Market Summary

At the time of press 1:56 am UTC on May. 17, 2025, the total crypto market is valued at at $3.28 trillion with a 24-hour volume of $109.93 billion. Bitcoin dominance is currently at 62.52%. Learn more about the crypto market ›

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]]> https://earlybirdsinvest.com/bitcoin-stalls-near-record-highs-amid-derivative-pressures-but-breakout-potential-remains/feed/ 0 36657 Introducing a new amendment API for derivative trading https://earlybirdsinvest.com/introducing-a-new-amendment-api-for-derivative-trading/ https://earlybirdsinvest.com/introducing-a-new-amendment-api-for-derivative-trading/#respond Fri, 07 Mar 2025 15:54:59 +0000 https://earlybirdsinvest.com/introducing-a-new-amendment-api-for-derivative-trading/

FIX APIs for Derivative Transactions are a major addition to our suite of API solutions. Specially designed to meet the needs of professional and institutional clients, the new API promotes seamless integration with derivative trading engines.

Our implementation, built on the industry standard FIX 4.4 protocol, ensures compatibility with existing trading systems and offers the latest performance benefits.

Why choose the Derivative Modification API?

Unparalleled performance

Our native fix APIs are built for the strict nature of derivative trading, and microseconds are important in capturing underlying opportunities and managing leveraged positions.

Whether you’re running a complex multi-league strategy or responding to changes in funding rates, the API provides the speed and reliability needed for sophisticated derivative trading, in addition to continuing investments in infrastructure and performance.

Ease of integration

The setup is fast and simple so you won’t miss an opportunity. The Financial Information Exchange (FIX) protocol is the industry standard for electronic trading used by leading financial institutions around the world.

The FIX API comes with robust documentation, clear messaging protocols and dedicated technical support to ensure the integration is as smooth as possible, whether it’s custom software or with FIX standards-compliant vendors.

If you’re already using the Spot Transaction Modification API, adopting the derivative API will feel seamless thanks to its consistent design and implementation standards.

Comprehensive Features

Our derivative fix API is built to handle unique aspects of both futures and options trading, including all order types and instructions available through breaks, using additional controls and more accurate market data.

The API provides level 3 (L3) market data access to a full order book, providing deeper visibility into market dynamics and providing additional risk management tools, including session-based cancellation-on-disconnect, compared to traditional L1 (top of books) or L2 (price aggregation) feeds.

Complement existing modification APIs for spot trading

Existing modification APIs for spot trading are widely adopted by Pro and institutional clients due to their reliability and performance. This is responsible for a volume of billions of dollars per month. Adding a FIX API to derivatives gives clients access to a unified, powerful interface for trading across multiple markets.

This integration means that you can manage both spots and derivatives you trade within a cohesive framework, streamline your operations and maximize capital efficiency.

Important Benefits for Professional and Institutional Clients

  • Gain deep market insights through more granular L3 order book data with individual order visibility and microsecond pre-order sequences
  • First, thoroughly examine your implementation or strategy in a UAT environment. This provides a complete mirror for the production system
  • Maintain connectivity between market data and execution through one robust channel, and maintain session-based risk control via Cancel-on-Disconnect
  • Achieve lightning speed execution with minimal overhead through a performance native fix engine
  • Seamlessly integrate through a unified API specification that traverses spots and derivatives

Ready to get started?

The Derivative Modification API is now available to all clients. Explore that feature and see how you can enhance your trading operations.

To get started with the detailed documentation and integration process, contact our API support team or visit our Developer Portal. You can contact your account manager to access UAT (user acceptance test) and securely test your API. Experience the next level of trading efficiency using the derivatives FIX API. This is where the future of professional trading begins!

]]> https://earlybirdsinvest.com/introducing-a-new-amendment-api-for-derivative-trading/feed/ 0 23814 New collateral options and updated haircuts for derivative transactions https://earlybirdsinvest.com/new-collateral-options-and-updated-haircuts-for-derivative-transactions/ https://earlybirdsinvest.com/new-collateral-options-and-updated-haircuts-for-derivative-transactions/#respond Thu, 27 Feb 2025 22:02:24 +0000 https://earlybirdsinvest.com/new-collateral-options-and-updated-haircuts-for-derivative-transactions/

Derivatives is expanding its multi-chorale trading suite with new collateral currencies, updated haircuts and significant changes to existing assets. These updates will allow Kraken Pro traders to have more flexibility in managing their positions and hedge risks in dynamic markets. Read what’s new, how collateral from Kraken Pro Derivatives works, and what it means to you.

At a glance:

  • AAVE, CAD, DAI, Near, Mana, Render, Rune, STX, Sui, Tao, XLM, and XTZ are now available as collateral that can be moved to derivative wallets.
  • BTC and ETH haircuts are declining. Others are currently tailored to spot margin levels, providing a consistent trading experience and making collateral easier to manage across both products (see here).
  • PYUSD is scheduled to be delisted as collateral.
  • AUD and CAD expand the number of Fiat currencies available with 0% haircuts.

Summary: “Haircuts” and multifaceted derivative trading

We will support Multicoratal Derivative trading means that a variety of assets can be deposited as collateral in a “driver wallet.” Apply a specific “haircut” (reduced effective value) to a specific crypto-secured asset based on the volatile profile. Essentially, if you want to use a crypto assurance as collateral, a small portion of its value is considered unavailable in the margin, but this does not affect the actual value of the asset or cover the fee. Haircuts also apply to unrealized profits/losses and funds, helping to maintain the safety margins of your trading system.

learn more:

New collateral assets

The 12 Fiat assets and crypto assets listed here have significantly expanded collateral options along with haircuts.

assets Haircut
CAD 0%
Ghost 20%
near
give
Rune
stx
sui
Tao
XTZ

Changes to haircuts

We also updated haircuts for many existing assets. A lower haircut generally means that more of the value of the asset can be used as collateral, while a higher haircut shows a more conservative rating.

Reduce haircuts

The next asset included collateral haircut reductions.

assets New haircut
aud 0%
BTC 1%
CHF 0%
ETH 1%
EUR 0%
GBP 0%
USDC 0.5%
USDT 0.5%

Haircut extensions

The next asset was a collateral haircut extension.

assets New haircut
Ada 7.5%
atom 10%
avax 10%
Doge 7.5%
fil 20%
GRT 20%
Inji 20%
KSM 20%
link 10%
Mina 20%
TRX 10%

What should you keep in mind?

It is important to note that collateral assets transferred to derivative wallets and used to open futures positions cannot be exchanged for other currencies or withdrawn while the position is open. These assets remain reserved as collateral and appear to be account balances, but are restricted from trading or withdrawing to a spot wallet until the position is closed. You can check the availability of your collateral assets at any time on the Derivatives Portfolio tab.

Payward Digital Solutions Ltd. is licensed by the Bermuda Monetary Authority to carry out its digital asset business. Using leverage to trade futures, derivatives and other equipment includes factors of risk and may not be suitable for everyone. For more information, please read Kraken Derivatives’ risk disclosure.

These materials are for general information purposes only and are not investment advice or recommendations or solicitations to purchase, sell, bet or hold CryptoAssets or engage in any particular trading strategy. Kraken does not work to raise or lower the prices of certain CryptoAssets that become available. Some crypto products and markets are regulated, while others are not regulated. Anyway, Kraken may or may not need to be registered or permitted to provide specific products and services in each market, and is not protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the CryptoAsset market can lead to losses of funds. Taxes may be paid for returns and/or increased value of crypto assets, and you must seek independent advice on your tax position. Geographical restrictions may apply. Please see this legal disclosure by jurisdiction.

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