Charles Schwab Gears Up for Spot Crypto Trading by Next Year

Bitcoin has recently experienced a notable rally, pulling the price back above $90,000 after over five weeks of stagnation. As of now, Bitcoin is trading near $94,401, just shy of the critical $95,761 resistance. 

This suggests that Bitcoin is not yet at its saturation point, with further upward momentum possible if key barriers are breached.

Bitcoin Investors Are Greedy

The market sentiment surrounding Bitcoin remains overwhelmingly positive, with investors showing high levels of optimism for further price gains. Social media posts indicate a sharp spike in bullish sentiment, with the number of optimistic (versus bearish) posts reaching levels not seen since the night of Donald Trump’s election on November 5, 2024. This surge in positivity suggests that many investors are poised to capitalize on Bitcoin’s potential growth, further fueling its rally.

However, the extreme level of greed in the market raises questions about the sustainability of this upward movement. As investor sentiment becomes increasingly optimistic, there is a risk that this could lead to a local top if too many traders become overly greedy.

The broader macro momentum for Bitcoin is signaling a rebound, particularly in the Profit/Loss (P/L) ratio, which is nearing a neutral 1.0 level. This shift indicates a balance between coins in profit and those in loss. Historically, the 1.0 threshold has acted as resistance during bear phases, but a sustained move above this level could signal a stronger recovery and continued upward momentum for Bitcoin.

While the shift towards a neutral P/L ratio suggests potential strength, it also opens up the possibility of selling pressure as investors look to lock in profits. Therefore, Bitcoin’s ability to maintain momentum will depend on how investors react to price movements and whether they decide to sell or hold their positions.

BTC Price Needs A Push

Bitcoin’s recent price action shows a 10% increase in the last seven days, trading at $94,401. The crypto king is now just below the significant $95,761 resistance level, which has been holding steady for some time. A break above this level would set Bitcoin on track to reach new highs, with $100,000 as the next major milestone.

Should Bitcoin breach $95,761, the growing greed within the market will likely encourage investors to hold their positions rather than sell. This will likely feed the altcoin’s bullish momentum, pushing Bitcoin further toward $100,000 as demand remains strong among traders eager to capitalize on potential gains.

However, if Bitcoin fails to maintain its position above $93,625, the price could fall toward the $91,521 support. A deeper decline to $89,800 could put the bullish momentum at risk, delaying any immediate recovery and increasing the chances of a consolidation phase.

The post Bitcoin Greed Gauge Flashes Red While Price Hovers Around $94,000: Next Stop $100,000? appeared first on BeInCrypto.

Coinbase signed a deal to acquire the crypto derivatives exchange Deribit for $2.9 billion, signaling the company’s growing interest in the crypto derivatives market.

The exchange will transfer $700 million in cash to Deribit, making the rest of its payment in Class A stock. This may or may not delay the deal’s finalization for a few months.

Coinbase Acquires Deribit

Coinbase first opened talks with Deribit in late March, but this deal evidently took a lot of negotiation. In January, the popular derivatives exchange started publicly evaluating buyout offers, but Kraken reportedly rejected a proposal to acquire it for $4-5 billion.

Four months later, Deribit is willing to accept a much lower offer. It’s unclear what pushed Deribit to move forward with a $2.9 billion offer from Coinbase. After the Kraken deal fell through, the crypto derivatives exchange left Russia due to EU sanctions.

This may have contributed to its lower valuation, but it’s difficult to say for sure. One thing seems evident: Coinbase pursued the deal to expand its presence in the derivatives market.

“With Deribit, Coinbase becomes the #1 global platform for crypto derivatives by open interest and options volume. Deribit brings approximately $30 billion in open interest and $1 trillion+ in trading volume. This is a major step in our global expansion strategy. We’re set to offer unparalleled access to crypto derivatives,” Coinbase claimed on social media.

Coinbase, one of the world’s leading crypto exchanges, has already been a player in this market. It began offering derivatives trading almost four years ago, and recently launched CFTC-regulated XRP futures contracts.

This partnership with Deribit, however, will allow Coinbase to supercharge these operations.

Meanwhile, Coinbase’s share prices have recovered significantly since Trump’s sweeping tariffs last month. COIN surged over 36% since April, as the exchange prepares its Q1 2025 earnings report later today.

Deribit executives will receive most of their $2.9 billion asking price in Class A stock from Coinbase. The latter firm will pay $700 million in cash, but will otherwise seal the acquisition deal with 11 million shares.

According to the press release, this may delay the proceedings somewhat, but the transaction “is expected to close by year-end.”

Moving forward, Coinbase didn’t specify how it plans to leverage Deribit’s resources for its own expansion plans. Still, the firm’s public statements repeatedly stressed that Deribit is the world leader in crypto derivatives.

By simply taking over its user base and trading volumes, Coinbase has gained many opportunities to take over the spotlight.

The post Coinbase Buys Deribit for $2.9 Billion As Stock Prices Surge 37% in a Month appeared first on BeInCrypto.