Need to know what happened in the crypto world today? Here’s the latest on Bitcoin price movements, blockchain developments, DeFi trends, NFTs, Web3 innovations, and regulatory news.
$8.2 Billion in Bitcoin and Ether Options Expire
On May 31, a significant event took place as 69,000 Bitcoin options worth $4.7 billion and 920,000 Ether options worth $3.5 billion expired. Historically, the expiration of such a large volume of crypto options has been linked to increased price volatility in the market.
According to Deribit data, the put/call ratio for the expired Bitcoin options is 0.61, indicating that more call options (long contracts) are expiring than put options (short contracts). For Ether, the put/call ratio is 0.46. A put/call ratio (PCR) below 0.7 suggests strong bullish sentiment, while a PCR above 1 indicates bearish sentiment.
The “maximum pain” point, where most losses are made by leveraged traders, is $66,000 for Bitcoin and $3,300 for Ether. Currently, Bitcoin is trading at $68,210, which is $2,000 above the pain point, and Ether is trading at $3,738, which is $400 above its pain point.
TRUMP Token Recovers After Donald Trump Guilty Verdict
The largest meme coin associated with U.S. presidential candidate Donald Trump experienced a sharp decline of 16% after Trump was found guilty on 34 felony counts for falsifying business records. The charges relate to concealing a hush money payment to adult film star Stormy Daniels.
Following the verdict, the market cap of the Donald Trump-linked MAGA (TRUMP) token dropped by over $130 million within 20 minutes, according to CoinGecko, plummeting from $13.48 to $11.27. However, the token quickly rebounded and is now trading at $14.70, just 1.5% below its 24-hour peak of $14.92.
Terraform Labs Seeks Settlement with SEC
Terraform Labs and its co-founder Do Kwon are finalizing a settlement with the SEC over a fraud case. Months after being found liable for misleading investors, both parties have agreed to a settlement, which is expected to be submitted for court approval by June 12, 2024.
The SEC accused Kwon and Terraform of deceiving investors in the promotion and sale of crypto tokens, particularly the failed algorithmic stablecoin TerraUSD. They were also accused of offering crypto assets without proper registration. The SEC has demanded around $5.3 billion in damages, while Terraform has proposed a much lower penalty of $1 million.
Do Kwon was arrested in Montenegro in March 2023 and faces potential charges there as well.
Summary Review: Today has been marked by significant events in the crypto world, including the expiration of major Bitcoin and Ether options, the recovery of the TRUMP token, and ongoing legal developments involving Terraform Labs and the SEC.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
