Key Points
Greetings on this fine Tuesday. Here’s the latest news from the world of cryptocurrency:
- Bitcoin’s price fluctuates around $28,000 ahead of the Federal Reserve’s interest rate decision.
- Crypto exchange Coinbase to present its case before the U.S. Supreme Court in two class-action lawsuits.
- Derivative markets for Arbitrum tokens emerge, allowing traders to wager on initial price movements.
Bitcoin’s price recently crossed the $28,000 mark for the first time in nine months and has been oscillating between $27,300 and $28,350 during the last day, with investors anticipating the Federal Reserve’s interest rate announcement on Wednesday. Market participants are forecasting a 0.25% rate hike. The leading cryptocurrency’s price seems to have hit a temporary plateau of around $28,000. A recent report from SwissBlock Insights suggests that the market is expecting a quarter percentage point increase in rates. The report states, “If the Fed raises rates, the market’s reaction should be relatively subdued. However, if the Fed holds off, we could witness a significant upward price movement.” In the meantime, the majority of altcoins have lost around 5% in the past day.
In a historic first, the U.S. Supreme Court will hear arguments related to cryptocurrency today. Coinbase’s legal team will attempt to persuade the nine justices to halt two class-action lawsuits against the crypto exchange. Interestingly, the case does not revolve around cryptocurrency itself but is instead a nuanced, procedural debate concerning the ability of a lawsuit to proceed in federal court while one party—in this instance, Coinbase—is seeking arbitration for the dispute.
As Thursday’s claim event approaches, derivative markets for Arbitrum (ARB) tokens are emerging on both centralized and decentralized platforms. Decentralized marketplace Clober is enabling traders to buy put options on ARB with strike prices of $0.50, $1, $2, $4, $8, and $16. Over $50,000 in trading volume has been recorded within 24 hours of the options’ issuance. Put options gain value as the price of the underlying asset, such as a token or stock, declines. Clober announced on Tuesday, “For 54 cents, you can secure the right to sell your ARB tokens at $2 anytime within 24 hours of claiming your ARB airdrop, with $ARB $2 put options.” This arrangement guarantees a $1.46 profit per ARB on the day of the claim, according to Clober.
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