Nov 25, 2024: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — Trump's Planned Crypto Advisory Council

President-elect Donald Trump has pledged to establish a crypto-friendly administration, which includes forming a new advisory council for the cryptocurrency industry. Major companies like Ripple, Kraken and Circle are vying for positions on this council to influence U.S. digital asset policy.

The council is expected to be based within the White House, likely under the National Economic Council, and will coordinate policies related to cryptocurrencies, advise Congress and help create a national Bitcoin reserve. Industry leaders, including executives from Coinbase and Circle, have expressed interest in joining.

Trump’s transition team is also considering appointing a "crypto tsar" to lead the council. Former CFTC officials, such as Heath Tarbert and Brian Quintenz, are advising on crypto policy as the administration seeks to roll back Biden-era enforcement actions against crypto companies.

While excitement over a pro-crypto administration has contributed to Bitcoin's surge toward $100,000, some consumer groups have raised concerns about the industry shaping its own regulations. 

Weekly Crypto Highlight — Bitcoin Tests $100,000 as ETF Flows Intensify

U.S. Spot Bitcoin exchange-traded funds (ETFs) have achieved a significant milestone, accumulating over $30 billion in total net inflows since their inception in January 2024. This surge in investment reflects a growing interest in Bitcoin, as well as a favorable market environment.

The rise in net inflows and trading volume can be attributed to heightened bullish sentiment in the market, particularly following the re-election of former president Donald Trump. His return to the political forefront has sparked optimism among investors, contributing to increased confidence in cryptocurrency investments.

As a result of this influx of capital, the total net asset value of these Bitcoin ETFs has exceeded the $100 billion mark as of Wednesday, Nov 20, 2024. This achievement underscores the growing acceptance of cryptocurrencies in mainstream finance, and highlights the potential for continued growth in this sector. The strong performance of these funds signals a robust demand for Bitcoin, and could pave the way for further developments in cryptocurrency investment.

Advanced

Bybit Institutional_Weekly Poster (35).png

Weekly Institutional Insights: Bitcoin Tests $100K as ETF Flows Intensify

Sui Name Service (SuiNS) enables blockchain users to register human-readable web3 names, ensuring secure, seamless transactions and a user-friendly on-chain identity.

Some people have no trouble remembering new cell phone numbers, and there are even a select few among us who wouldn't find it hard to memorize a 16-digit bank card number. However, very few people would choose to tackle the job of reliably recalling an alphanumeric blockchain address. Network addresses on 

 (ETH) are 42 characters long, while on the 

 (SUI) blockchain they span 66. These complex and length addresses are virtually impossible for most users to remember, and are among the least user-friendly features of 

 networks. Not only are long blockchain addresses distinctly user-unfriendly, but they also lead to many instances of wrongly executed transactions due to incorrectly input characters. 

Sui Name Service (NS), a solution on the Sui blockchain, has been specifically designed to tackle this problem. The service allows users to create human-readable and easy-to-remember web3 names linked to their underlying blockchain addresses. Using SuiNS, you can transact within web3 using your preferred username and, optionally, an avatar, rather than a long, complex blockchain address.

 (NS), or simply SuiNS, is a decentralized naming service that allows you to create and use a human-readable, user-friendly web3 handle to interact with the blockchain environment, instead of using a typical long and complicated network address. 

At the underlying level, your SuiNS name is linked to your blockchain address, but all the interaction and operations on the chain happen via your registered name.

SuiNS was first conceptualized and launched in 2022, inspired by the popular 

 (ENS). In many ways, SuiNS and ENS are similar, the obvious difference being that each one applies to its own respective blockchain environment. In May 2023, SuiNS was introduced on the Sui blockchain's newly launched mainnet. The service was developed and is supported by Mysten Labs, the development studio behind the Sui blockchain project. Since the beginning of the Sui blockchain's conceptualization, SuiNS has been among the core projects of the entire Sui ecosystem. As of late November 2024, SuiNS has managed to achieve the remarkable milestone of having registered nearly 330,000 names.

Using SuiNS, you can register your preferred username (as long as it's not been taken) for one year by paying a registration fee, currently charged in SUI coins. The name can be renewed at expiration for up to five years. All interactions with the blockchain environment through your wallet use your preferred username, rather than your blockchain address.

SuiNS names can be between 3 and 63 characters. Users can check the availability of their preferred handle and register it using the 

, where a lookup textbox is prominently displayed. Shorter names cost more than longer handles. As of the time of this writing (Nov 21, 2024), a three-character-long name costs 500 SUI ($1,785) and a four-character name will cost 100 SUI ($357), while names with five or more characters are priced at 20 SUI ($71.40).

A SuiNS name can only be registered for one year, but it can be renewed for up to four years (excluding the initial registration year). There's a 30-day grace period after the expiration of your SuiNS name, during which you may still renew it. If you don't renew during the grace period, your registered name will be up for grabs by anyone on the market. Optionally, you can buy an NFT avatar linked to your SuiNS name.

 (DApp) ecosystem on the Sui blockchain. Developers can use off-chain remote procedure calls (RPCs) to integrate the Sui service into their application environments. They can also take advantage of the native, on-chain SuiNS SDK to interact with the service.

Thanks to SuiNS, you can enjoy short, comprehensible names for your own address, as well as the addresses of the parties with whom you transact (if they also sign up for the service). No more forgettable string combinations that are hard to read and virtually impossible to remember!

However, a SuiNS name isn't just a tool of convenience. It also represents your decentralized identity on-chain. The identity is fully owned by you, the user, rather than by a centralized entity.

SuiNS minimizes the likelihood of lost assets due to sending funds to the wrong address: short, easy-to-remember names are way less prone to incorrectly executed transactions than standard blockchain addresses.

Security is also among the benefits of SuiNS. The service runs on the Sui chain, which prides itself on developing and enforcing high-grade security standards. Among these are 

, a framework that maintains a list of malicious websites and on-chain assets, thus protecting the Sui ecosystem from 

 launched by these known nefarious entities.

The SuiNS service launched its native token, NS, on Nov 14, 2024. Initially, NS is envisioned to support 

 processes on the platform, and will also be used for purchasing and trading SuiNS names. Currently, names are traded using SUI, the blockchain's native cryptocurrency. It's likely that NS will replace SUI in this capacity in the near future. The project team has also hinted that there could be additional uses for the NS token beyond governance and payment for SuiNS names. More announcements on this issue are likely to follow.

During the initial phase of the token's existence, governance will be its most prominent function. Holders of NS will be able to vote on important issues concerning the protocol's rules and future direction. One NS equals one vote, with more NS tokens giving you a greater say in the overall decision-making process. You can also increase your voting power by locking your NS tokens for from one to 12 months. For every additional month locked, you obtain 10% voting power. To encourage voting, 5% of the NS token's supply has been allocated for governance rewards. NS is a 

 token, with a total and maximum supply set at 500 million. The token's supply distribution shares are per the chart below.

NS is available on Bybit's Spot market as a swap pair with USDT (

). You can also take advantage of Bybit's campaign dedicated to the token to grab a share of the 

. Three campaign events for eligible users run through Nov 27, 2024, 8AM UTC:

Thanks to Sui Name Service, interacting on-chain has become easier and more user-friendly. However, easy-to-remember names aren't the only benefit: advantages also include lower likelihood of lost funds, better security and a completely decentralized, user-owned identity on-chain. So far, around 330,000 names have been registered, and with the impressive suite of benefits, expect this number to grow as we move with SuiNS into 2025.

Intermediate

sui name service (suins).png

Sui Name Service (NS): Your On-Chain Identity Made Simple

The cryptocurrency market is witnessing an influx of speculative trading, particularly with meme coins like DOGE, PEPE and BONK experiencing extraordinary gains. 

November 2024 has marked a significant milestone for Bitcoin, with its price soaring to $94,105. This unprecedented growth has been driven by global events and heightened social media discussions, with predictions of six-figure valuations. Historically, peaks in social media chatter often precede market corrections, signaling traders to exercise caution. Currently, while whale accumulation remains strong — with wallets holding over 10 Bitcoin adding 53,006 more BTC in just one month — retail traders remain surprisingly cautious. This wary sentiment contrasts sharply with the bullish behavior usually seen during price surges, suggesting a potential correction.

The cryptocurrency market is witnessing an influx of speculative trading, particularly with meme coins like DOGE, PEPE and BONK experiencing extraordinary gains. Despite their volatility, these tokens reflect a broader appetite for high-risk investments. Notably, whale investors holding 1M–100M DOGE are accumulating, while smaller holders are selling, creating conditions for potential breakouts. However, if new capital stops flowing, these speculative assets could face significant downturns. Additionally, while discussions around Bitcoin reaching $100K are increasing, they haven’t reached the levels seen earlier this year, indicating that fear of missing out (FOMO) may not yet be fully realized.

Institutional Interest and Ethereum's Resurgence

Demand for Bitcoin ETFs has surged, with daily trading volumes hitting a record $8.21 billion, signaling increased institutional interest. This activity often coincides with market peaks, but could also indicate new investments flowing into the crypto space. Meanwhile, Ethereum has also gained momentum, breaking above $3,100 for the first time in over 14 weeks. Additionally, whale accumulation is on the rise, suggesting that as Bitcoin leads the market, profits may soon be redirected into Ethereum. In contrast, Solana's price movements remain highly sentiment-driven, with funding rates indicating potential entry points for investors. Overall, altcoins are experiencing growth, particularly following the U.S. elections, which have reignited optimism in the crypto market.

Intro to Santiment.png

Bitcoin's Resurgence: Analyzing Market Dynamics and Speculative Trends in November 2024

Crypto market makers play a crucial role in providing liquidity by consistently placing buy and sell orders. Learn more about how they work here.

The cryptocurrency market is notorious for its high volatility and sometimes low liquidity, making it a challenging environment for traders and investors. Executing trades can be difficult, often resulting in significant price 

Market making is a strategic approach that provides the necessary liquidity to stabilize markets, ensuring smoother trades and reducing volatility. By creating buy and sell orders around the current market price, market makers help maintain a healthy trading ecosystem. This article examines the fundamentals of market making, its benefits for traders and exchanges and the way it enhances the overall efficiency of the cryptocurrency market.

A crypto market maker is an entity or individual who primarily provides liquidity in cryptocurrency markets by continuously placing buy and sell orders for digital assets. This activity ensures efficient trading and helps maintain stable prices.

Crypto market makers play a key role in keeping markets liquid by continuously placing buy and sell orders on exchanges. Here's a closer look at how they operate.

Key Characteristics of a Crypto Market Maker

Crypto market makers provide liquidity and stabilize prices in the cryptocurrency market. The following are the key traits that enable them to operate effectively.

Market makers continually place buy and sell orders, ensuring the availability of transactions for traders. This constant availability reduces wait times for trades and minimizes the price impact of large orders, making the market more efficient and accessible for everyone.

One of the fundamental roles of market makers is that of managing the bid-ask spread. By consistently quoting competitive prices, they narrow this spread, thereby enhancing trading efficiency and reducing costs for other market participants. This spread is also their primary source of profit.

Market makers leverage advanced algorithms and HFT strategies to analyze market conditions and optimize their order placements. This technology allows them to react swiftly to price changes and maintain a balanced inventory of assets, which helps to manage risk and maximize profitability.

Due to the inherent volatility of cryptocurrency markets, effective risk management is vital for market makers. They employ various techniques, such as hedging and real-time market analysis, to minimize exposure to sudden price swings. This ensures their operations remain stable even in the face of market fluctuations.

By providing continuous liquidity and facilitating smooth trading operations, market makers enhance overall market efficiency. Their presence attracts more traders, which increases transaction volumes, boosts exchange activity and contributes to a healthier trading environment.

Given the quickly evolving nature of the cryptocurrency landscape, market makers must be adaptable, continually refining their strategies in response to new technologies, regulatory changes and shifts in market dynamics. This ensures they remain competitive and relevant.

Crypto market makers play a critical role in the cryptocurrency ecosystem by providing liquidity and stabilizing prices. Despite the integral role they play, however, their operations come with both advantages and disadvantages. 

Additional Importance of a Crypto Market Maker

Crypto market makers play a vital role in maintaining the efficiency and stability of the cryptocurrency market. Their presence on crypto exchanges ensures trading environments operate smoothly. 

Newer and smaller cryptocurrencies often struggle with liquidity. Market makers provide a market for these assets, promoting their growth and creating a more diverse and dynamic crypto ecosystem.

Through continual quoting of prices, market makers aid in fair price discovery, ensuring that cryptocurrency prices reflect actual market demand rather than extreme fluctuations. This promotes a more trustworthy and transparent trading environment that allows traders to make data-backed decisions. 

Crypto market makers are essential players in the cryptocurrency ecosystem, providing liquidity, stabilizing prices and ensuring smooth trade execution. Their use of advanced algorithms and real-time order placements encourages a more efficient, accessible and fair market. However, risks such as market manipulation, potential capital loss and lack of regulation can be problematic. Overall, the role of market makers in supporting emerging assets and maintaining market stability makes them indispensable for a healthy and growing crypto environment.

market maker.png

Crypto Market Maker: Boosting Trades With Strategic Liquidity

Bybit Learn

Crypto

Curious to find out more about the Ethereum Shanghai upgrade and whether ETH price could soar? Read this article for more information.

20230228-094352.png

After the momentous Ethereum Merge was flawlessly executed on Sep 15, 2022, the crypto market buzzed with enthusiasm as everyone wondered what was next for 

. Supposedly, Ethereum’s post Merge upgrade schedule was supposed to go along the lines of the Surge, Verge, Purge and Splurge. Recently, Ethereum’s core developers have decided to detour from their original roadmap plans.

Titled the Ethereum Shanghai upgrade, the plan is for developers to include multiple Ethereum Improvement Proposals (EIPs) that will minimize any delays before EIP-4844 launches. Curious about the EIPs that the upcoming Shanghai upgrade will include? Here’s how it’ll change Ethereum for the better in the long run.

Alongside EIP-4895 are a couple of other EIPs that are also planned to be implemented with the Ethereum Shanghai upgrade. These include:

Ethereum developers are currently planning a Q1 release, with the Shanghai Public Testnet expected to begin in February 2023. At the current rate of development, it seems that all is going according to plan as regular updates have stated March 2023 as the target release time frame.

Why Is Everyone Talking About the Ethereum Shanghai Upgrade?

If the Ethereum Shanghai upgrade is simply a precursor to the much more important Surge upgrade, the average investor might be wondering why there’s so much buzz with regard to its launch. To understand this, it’s key to first grasp what happened in the Ethereum community after the Merge was implemented.

Prior to the implementation of EIP-4895, participating in the staking of ETH was a one-way street. In order to secure an 

 staking reward, users had to lock up their ETH for a specific amount of time. As part of the 

 process, users had to minimally stake 32 ETH to participate. 

For users with less available capital, they could opt for 

 which streamlined the staking process and opened ETH staking to the masses. As staking ETH became easy and convenient for the average retail crypto investor, this led to the rise of popular staking platforms like Stakewise, Lido and Rocket Pool.

Ultimately, staking ETH was a calculated risk; stakers could earn extra yield at the downside of lowering their liquidity and exposing themselves to the dangers of counterparty risk. Despite not being able to withdraw ETH at the time, many investors took the Ethereum Foundation’s words to heart and trusted that in due time, they would be able to withdraw their deposited ETH from the Beacon Chain.

With the Merge’s implementation, the Foundation began to publicly display a rough timeline that laid out when withdrawing ETH from the Beacon Chain would become possible. Unfortunately, somewhere down the line, these dates got shifted as developers became ambiguous about Ethereum Shanghai upgrade’s exact launch date. This became the basis of the 

 surrounding Ethereum as the Ethereum Foundation was publicly denounced for this shady, non-transparent decision.

To the relief of many ETH bulls and investors, the developers seemed to have pulled through and stuck to their originally planned timeline. The experimental testnet Shandong went live in October 2022 and quelled many 

 fears as it successfully activated selected Shanghai-related EIPs without a hitch. With staked ETH levels approaching the 16 million mark, it’s safe to say staking ETH will only become more popular over time thanks to the withdrawal flexibility implemented by the Ethereum Shanghai upgrade.

Staking is a key issue here when discussing the movement of ETH price. With the implementation of the Shanghai network upgrade, our bullish argument would be that we can expect more users to HODL and stake their ETH as adoption rises. This would drive Ethereum’s staking ratio up as users who were previously fearful because they could not withdraw their ETH can now proceed to enjoy additional yield without the downside of lower liquidity. In this regard, we can certainly expect ETH to rise in price as large-scale institutions buy and stake their ETH to earn a respectable APY of about 5% without sacrificing liquidity.

From lowered gas fees to fewer failed transactions, the upcoming Ethereum Shanghai upgrade fixes various nagging issues that have constantly affected users and developers. By getting these fixes in before the big 

 implementation, the Foundation ensures minimal delays as they prepare themselves to ship the Surge update.

On the bearish side of things, the crypto market as a whole is still not out of the woods as big institutions continue to out themselves as victims of the 

 contagion. Macroeconomic factors are also bearish as US inflation still remains far from its 2% target and the Federal Reserve continues to hike interest rates. These factors might pressure original ETH stakers from December 2020 to sell their staked ETH and gain more liquidity so the rest of their portfolio can stay afloat during the crypto bear market. 

In anticipation of this, the Ethereum Foundation has set a hard limit of about 40,000 ETH that can be unlocked each day. This will hopefully ease the selling pressure and reduce short-term ETH volatility.

Ethereum Shanghai Network Upgrade Progress

Since testnet Shandong went live in late 2022, plenty of progress for the Ethereum Shanghai network upgrade has been made. These progress updates serve to show that the Ethereum Foundation is on track with its promised March network upgrade rollout.

Firstly, the team managed to copy the blockchain and create a shadow fork to begin the initial stages of testing the new EIPs in an isolated environment. The shadow fork proved a success as it immediately revealed minor glitches with Ethereum nodes that were making use of 

The latest progress update involves news of the latest Zhejiang testnet being launched. It serves to replace the Shandong testnet. This is because when Shandong was launched, it included several EIPs involving 

 (EOF) that will not be rolled out with the Shanghai network upgrade due to time and resource constraints. 

Thus, the newest Zhejiang testnet seeks to allow for staked ETH withdrawal testing in a more accurate environment that places the Ethereum network under a similar load. Ideally, withdrawals for staked ETH should go off without a hitch as they're exposed to simulated network attacks and stress tests. According to Ethereum Foundation developer Parithosh Jayanthi, Zhejiang 

 "a great opportunity for all tools to test out how they want to collect, display and use the withdrawal information.” 

 will be made available on Feb 1, 2023. Following this, the Shanghai+Capella testnet will be triggered six days later at epoch 1350. It's when users will be able to deposit ETH to validators on the testnet, practice Boneh–Lynn–Shacham (BLS) digital signature changes and exit without incurring any risk. On top of this, you'll also be able to convert 0x00 credentials to 0x01 and set a withdrawal address as you test partial and full withdrawals when exiting your validators.

How to Profit from the Ethereum Shanghai Upgrade

Thinking of how you can profit from the near-term volatility caused by Ethereum's Shanghai upgrade? Here are our thoughts on how you can long ETH in the event that ETH prices soar:

Optimal Bullish Strategy: Stop Market Leveraged Long Order

Firm believer of our bullish ETH thesis on how more long-term ETH investors might just buy and stake ETH because of the ability to finally withdraw their deposited ETH? Then consider our strategy of utilizing a stop market leveraged long order by buying the leveraged perpetual token 

To do so, simply sign up for a Bybit account before accessing the Spot Trading platform on Bybit and locating the ETH3L token. Once you’re in the trading interface, you’ll need to change your order type to 

. This type of market order essentially helps you extract maximum short-term gains while limiting your maximum loss thanks to the 

Before inputting your price levels, it’s key to check for areas of strong buying and selling. You can then place price levels based on perceived support and resistance levels. These can vary based on your personal risk appetite as some price levels appear to be stronger than others.

Once you’ve funded your Bybit Spot Trading wallet with the necessary funds, you may proceed to input the fields present in your ETH3L leveraged token stop market order and submit the order to place your trade.

 Difference between Entry - Exit before rebalancing

 Difference between Exit - Entry + Volatility Decay + Fees

Keen on reading up more about exact strategies on how you can trade with Spot and Derivative products on Bybit? Check out our guide on 

For many ETH investors and traders, all eyes will be on its execution as the core developers seek to execute the Ethereum Shanghai upgrade in the smoothest possible manner. While this network upgrade might not be as pivotal as The Merge, it does lay the foundations for future upgrades. 

By changing the way ETH staking works, the Ethereum Shanghai upgrade will impact how retail and institutional investors interact with ETH as they consider staking viable now that withdrawals from the Beacon Chain are possible. This ultimately paints a brighter future for Ethereum as a whole as it continues to prove itself as a viable 

. Who knows; in the long haul, Ethereum might even be able to threaten Bitcoin’s top spot on the market cap list and achieve the Flippening.

Ethereum Shanghai Upgrade: Can ETH Prices Soar Again?

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards